New property lenders gear up to claim market share

There might not be a better time to take out a mortgage

​There might not be a better time to take out a mortgage   

The recent entry of Discovery Bank and Capitec Bank into the lucrative R1.26-trillion mortgage lending sector is good news for homebuyers and will likely help breathe new life into the depressed housing market. It’s already led to heightened competition among lenders, pushing banks to offer customers more innovative products — and better pricing.

That may seem counterintuitive, given the surge in bond defaults, which raised fears that banks will be forced to tighten their lending taps. But ooba CEO Rhys Dyer says mortgage lenders are in fact competing more aggressively than ever for market share. That’s evident from the improved rate concessions and the lower deposit requirements that have been achieved by the mortgage originator for its clients in recent months…

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