Why Use a Bond Originator?

Getting a home loan these days is not an easy undertaking and can become a very stressful process. Bond Originators promise to make the process of applying for a home loan much simpler. We look at exactly what they offer.

“When we started looking to buy our first house Leigh and I were both pretty young and struggled to get banks to take us seriously or to offer us decent lending rates,” says Luke Solomon. “Working with a bond originator was a lot easier – we had one person to deal with, and I had her personal cell number. She helped explain a lot of the jargon, and what was needed to get the process moving. She applied to all the major banks for us and negotiated a very good interest rate.”

BetterBond’s CEO Rudi Botha says that one of a bond originator’s most valuable services to a client is advice.  “The moment a buyer is interested in purchasing property, they should contact BetterBond for the right advice and guidance regarding all the leading banks’ current credit rules, the process from when an application is submitted to the time it registers and the cost involved from a transfer and registration point of view.”

“Bond originators are familiar with the peculiarities of each bank’s lending criteria and documentation requirements. Thus they are able to achieve the best possible deal with the least fuss. We have found, at times, that even private banking clients are not able to secure the best deal through their own bank. This is because each bank varies in its appetite to lend in certain price ranges and areas at any point in time,” says Gareth Bailey, CEO of Re/Max Address Property Group.

Buyers should approach a bond originator for a pre-approval as soon as they have decided to buy, says Botha. “The pre-approval document plays an integral part in the buying process offering some negotiating power when signing that offer to purchase. This document gives the buyer a good indication of what he or she could qualify for, placing them in a much more favourable position when viewing properties in a specific price range.”

Each bank does things differently and the specifics required by each bank can become overwhelming for buyers. A bond originator is familiar with all of the nuances of a particular institution’s criteria and they are, therefore, able to negotiate this process for clients.  “We monitor the applications from day one and provide feedback. We are able to negotiate, on the client’s behalf, a better interest rate and loan to value, doing our utmost to secure the client the best approval and most favourable interest rate,” explains Botha. “Having the ability to submit applications to the four leading banks in South Africa gives the client peace of mind that firstly every angle has been covered from an application submission point of view.”

Is working through a bond originator popular in South Africa? “On the whole, most deals are still done through originators as, most often, they are able to get the best deal for our clients,” says Bailey. “Overall bond origination in South Africa makes up 50% of the total bond approvals on a monthly basis,” says Botha. “1 in 4 South Africans have entrusted BetterBond to secure them the best deal and we have secured over 1 million approvals for people in South Africa.”

So, what does a buyer have to pay for the convenience, advice and professional service of a bond originator? The service is completely free as bond originators are contracted to the banks.

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About BetterLife Home Loans

Since 2003 BetterLife Home Loans has been SA’s No.1 Bond Originator, handling the entire home loan application process on your behalf – free of charge! Our aim is still to source the best interest rate for you by submitting your home loan application to all the major banks. There is no easier way to apply for a Bond or Home Loan in South Africa!

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