With up to 70% of bond applications being turned down by banks, consumers need to rethink their approach to buying property.
This is the view of Paul Joubert of the RealNet office serving Vereeniging and Sebokeng in the Vaal Triangle, who adds that "unsuccessful credit applications often have less to do with affordability than with lending criteria".
"Due to legal requirements and in view of the global credit squeeze, banks are cherry-picking among credit applications."
"For instance, few buyers realise that they might scupper their chances of a mortgage by applying for credit at several banks at the same time. In terms of financial transparency, banks know when more than one application has been lodged and may give preference to single applications," he says.
Another factor that contributes to successful applications is a squeaky clean credit record. "Banks pay particular attention to prompt payment of bills and some banks will not even consider an application within six months of a late payment, be it on an account with a store or another supplier, and no matter what the reason for the delay or the size of the bill."
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Is it not time for a property lending and investment institution (definitely unrelated to ANY BANK and NOT part of any Bank Group) to be established ?
Banks break their legs to give credit in good times and as soon as the bad times come around they break their legs running away from granting any credit. Hiding behind the National Credit Act (NCA) and any other reason under the sun. It is time for them to adjust to their customers' needs, NOT the converse.
Alternatively, get out of the home loan business. - François Snyman
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