WHY USE A BOND
a property investment may sound daunting but with the help of an estate
and a bond originator it is really not that difficult. An estate agent
help you find the right property and the bond originator in conjunction
the estate agent will help to pre-qualify you as a buyer.
pre-qualified, allows you to move swiftly when you find the right home,
especially when there are other interested buyers. It also indicates to
seller that you are serious and really can afford to buy the property.
you have found a suitable property through the estate agent, a bond
will then facilitate your home loan application with one of the major
the best possible interest rates.
Essentially what they do is :
The Bond originator deals on your
behalf with numerous banks and people during a bond
application process while they are the sole point of contact. A Bond
gets paid bond commission by the bank that grants the loan. They will
do their utmost best to deliver a good service because it is their sole
submit your application to the two banks most likely to match your
requirements. (Bank criteria on loans change all the time so they know
which current criteria most meet your application)
- If successful, you get advised of the
options you have regarding interest rates offered etc.
unsuccessful they will advise you as to the reasons why. If these are
because of major reasons which will prevent you getting a bond
anywhere, they, together with your estate agent will guide you as to
what steps to take to correct your credit standing so that you may
purchase some time in the near future.
for minor reasons, they will then re-submit the application to the
other major banks. It is worthwhile noting that bond originators have a
very high success rate in obtaining a bond from a second bank once a
first one has declined.
successful, they once again will notify you of what is being offered by
the banks and you then sign acceptanceone of the quotes received.
Before reaching a sale agreement
between a buyer and a seller, a long time could
pass and a lot of hard work by an estate agent went into finding a
suitable home. It could be upsetting for both parties if the bank
the bond application. It is therefore better in the current property
pre-approve a buyer beforehand.
Pre-approval entails a credit check
and submitting necessary documentation such
as a recent pay slip, marriage certificate, bank statements etc to see
buyer qualifies for a home loan and at what price. To Pre-approve a
everybody's work a lot easier. In the first instance a buyer knows what
can afford, the estate agent does not waste time and money to show a
buyer properties that are not in their price range and the possibility
home loan application to be successful is therefore much higher.
exactly are the benefits of a
bond originator ?
Bond originators in South Africa have
for instance saved buyers R7,35 billion in the 2008 year in interest charges through the negotiation of lower
(Property Professional Magazine, p58 March/April 2009 issue).
- When using a bond originator, consumers
have the advantage that banks
compete against each other for every loan in offering a good interest
- If dealing directly with your own bank at
your branch, you are often
working with staff, who are not fully trained or up to date with what
their bank home finance options are. (This can be avoided somewhat by
going directly to your bank's bond loan department)
- As mentioned above, bond originators have
a high success rate of
getting a bond from one bank even when another has said no.
- Bond originators understand the bond
business and how banks think, They
are therefore more capable than the man in the street, in motivating
reasons for granting a loan if the bank is in doubt
- Originators are generally more customer
orientated that banks so
communication and feedback is generally better
So if you would like us to introduce you to a few options just contact
us and let us know!
details on the various costs involved in buying a property go here
Visit the Finance Advice Centre for
all your finance answers
on the various costs involved in buying a property go Here
Go to the Buyer Section for
all your buyer answers
Remember to look through
our Step by Step Buyer
Guide and also visit our Blog
for other helpful information