Establishing a property investment may sound daunting but with the help of an estate agent and a bond originator it is really not that difficult. An estate agent will help you find the right property and the bond originator in conjunction with the estate agent will help to pre-qualify you as a buyer.
Being pre-qualified, allows you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and really can afford to buy the property.
When you have found a suitable property through the estate agent, a bond originator will then facilitate your home loan application with one of the major banks at the best possible interest rates.

Essentially what they do is :
  • First 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.
  • If 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.
  • If 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.
  • If successful, they once again will notify you of what is being offered by the banks and you then sign acceptanceone of the quotes received.
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 originator gets paid bond commission by the bank that grants the loan. They will therefore do their utmost best to deliver a good service because it is their sole source of income.

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 buyer a suitable home. It could be upsetting for both parties if the bank turned down the bond application. It is therefore better in the current property market to 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 if the buyer qualifies for a home loan and at what price. To Pre-approve a buyer makes everybody's work a lot easier. In the first instance a buyer knows what he/she can afford, the estate agent does not waste time and money to show a potential buyer properties that are not in their price range and the possibility for a home loan application to be successful is therefore much higher.

What exactly are the benefits of a bond originator ?
  • When using a bond originator, consumers have the advantage that banks have to compete against each other for every loan in offering a good interest rate.
  • 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
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 financing costs. (Property Professional Magazine, p58 March/April 2009 issue).

So if you would like us to introduce you to a few options just contact us and let us know!

For details on the various costs involved in buying a property go here

Visit the Finance Advice Centre for all your finance answers
For details 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
Subscribe to Newsletter property network
property blog port elizabeth south africa
property network on facebook


property advice centre
property network feedback page
hazel smith estate agent property network