Nedbank announced on Wednesday they would follow the example of other banks and put an end to 100% home loans.Borrowers were always able to get 100% loans up till R300 000,as of Wednesday these loans will now require a 5% deposit.
The bank had to readjust it’s lending policies due to increasing financial pressure that has affected other banks.Many people will be left wondering when they will ever be able to afford a home of their own.It doesn’t look good at the moment and we are all waiting to see what will happen with interest rate.
Will it go down in December or only next year in April.Most economists are predicting a drop early next year but some are saying things in the global economy are moving too fast for that and are predicting a December drop.
The interest rate drop will bring about a recovery in the residential property market and just make repayments more affordable.With the National Credit Act already making it tougher to get a home loan the instigation of deposits for all home loans won’t improve peoples chances of getting a home loan at the moment.
It leaves one wondering whether or not they may bring back 100% bonds when things improve for us again.Maybe by that time our credit histories will also have improved because of the restrictions imposed by the NCA.
Well, the poor sellers out there are probably not at all happy with the current rate of bond approvals and it looks like they may still have to wait a while before they have the upper hand to negotiate for their best interests.
I hope we can all look to future and know that it’s probably going to get a lot better before the middle of next year.
