Banks remain cautious in home loan lending
http://www.sacommercialpropnews.co.za/property-types/housing-residential-property/3565-banks-remain-cautious-in-home-loan-lending.html
In spite of the interest rate being at a 33 year low, banks remain very cautious in terms of granting home loans with all information submitted to them being thoroughly analysed to ensure the applicant’s affordability, says Kim Pistor, legal advisor and conveyancing manager for Rabie Property Group.
Pistor said while it was relatively straight-forward to confirm the monthly earnings of salaried individuals, the same cannot be said for those who are self-employed. “In these cases supporting documentation is a key element to a successful mortgage application with the banks requiring a financial history of the preceding two to three years.
“These applications usually take longer to obtain bond approval as they are often initially declined due to the various banks tight criteria related to self-employed individuals. It is often not the client’s own bank who eventually issues an approval and it is for this reason that the services of a mortgage originator are beneficial,” says Pistor.