Zero Deposit Loans More Accessible Than Ever Before
PUBLISHED 8 SEP 2021
Cape Town homes are selling faster than ever as the property market shrugs off the pandemic and first-time buyers enter the market with force.
One of the major factors behind this encouraging trend is the availability of zero deposit loans and super low interest rates last seen a generation ago.
If you’re in the market for your first home, now could be the ideal time to invest in residential property. Let’s take a closer look at the trend for no deposit mortgages and what it could mean for the Cape Town property market going forward.
No deposit, no problem
The residential property market in Cape Town has been buzzing since the fourth quarter of 202, with agents reporting increased enquiries and deals being closed at a fast lick.
The latest market statistics support this optimism, with the average home purchase price in South Africa having increased 13.8% year on year in the first quarter.
Low interest rates are definitely a driving factor behind this uptick in the market and judging by the loan approval rate, more and more buyers are gaining access to property financing.
According to bond provider Ooba, more than 80% of new applications were approved in the first quarter of 2021.
Of these, 61% were granted with no deposit. This amounts to 79.3% of new bond approvals being issued with 0% deposit.
Overall, the zero-deposit trend seems to be here to stay, with banks showing their eagerness to lend to young professionals taking advantage of easy terms and low interest rates to buy their first homes.
What young buyers are looking for
Selling your home to an up-and-coming young professional is an excellent opportunity for Cape Town homeowners this year – but what kind of properties appeal to them?
Compact units with plenty of space for remote working and access to fibre internet are especially popular with the no deposit crowd.
The advent of remote working means that homes in areas that were previously thought to be too remote - like those on the outskirts of Cape Town - have now become extremely viable options for younger buyers.
Whether you’re buying or selling - our team is on hand to help
If you’re entering the Cape Town property market as a buyer or seller this year, Cape realty is here to assist you. Contact us today to speak with one of our experienced estate agents.
Image Credit: https://pixabay.com/illustrations/zero-percent-statistic-money-sign-706875/