ooba reports highs despite tough conditions

ooba has reported another new high in approved home loans for November, exceeding its previous record set in October. The value of home loans approved through ooba in November is up 30% on November 2011, whilst October was up 47% on the prior year. This boosted ooba's performance for November to 313% higher than ooba's historical lowest month during the property market crash and ensuing financial crisis in 2009.

For the 11-month period January to November 2012, ooba's approvals are up 147% over the same period in 2009, and up 42% on 2011.

"It's gratifying to report this kind of growth given the extreme challenges the industry has experienced over the past five years," says Saul Geffen, ooba CEO. "The growth has been driven by a significant increase in ooba's market share as well as an improvement in property market conditions and lending policies."

ooba has doubled its overall market share since the beginning of the crisis five years ago, based on independent market share figures.

Geffen also attributes the company's growth to the value proposition that mortgage originators offer consumers. "One in every five SA homebuyers use ooba to secure their home finance. Consumers understand that in today's tough borrowing environment, using a mortgage originator significantly enhances the chances of securing home loan approval and on competitive terms," he says.

ooba currently obtains approval for 71% of all home loan applications it processes, which compares favourably with the average bank approval rate of 52% across the major lenders. "Homebuyers using ooba have on average a 36% better chance of securing home loan approval."

"ooba leads the market with the highest home loan approval rates. Both homebuyers and estate agents desire high closure rates without the red tape, so we have focused on delivering this" says Geffen.

"ooba has forged strong partnerships with banks and real estate agencies based on ooba's unique processes and supporting infrastructure", says Geffen. Most of the leading real estate brands in SA, including Pam Golding, Seeff, Sothebys, Harcourts, Wakefields, Jawitz and Maxprop, partner with ooba exclusively to offer their clients ooba's home finance expertise.

He says that the improved market conditions are a result of the low interest rate environment coupled with subdued property price inflation and improved lending policies. He expects the current environment to persist into 2013.