New home loans show effects of interest rate cuts.

Byline: Thabang Mokopanele

New home loans show effects of interest rate cuts ALTHOUGH the Reserve Bank's new mortgage loan numbers remain weak, the mildly diminished rates of year-on-year decline in the value of new mortgage lending indicate a household sector that has begun to respond positively to sharp interest rate cuts.

This is good news because almost all the banks have now announced a relaxation in mortgage lending, which bodes well for the property sector. Standard Bank recently increased its risk acceptance rate in its home loan and credit card divisions. The changes were designed to benefit first-time entrants to the housing and general credit markets. It …