CHOOSING A LENDER
are buying a new home or refinancing your present one, it is wise to do
comparison shopping among lenders. A low interest rate isn't the only
by which to evaluate a loan. You should also consider the terms of the
what your closing costs will be and the reputation of the lender.
estate agents are a good source of information about loans and lenders,
you are buying a home or just refinancing your present home. We
assist buyers when they need a bond in order to purchase a home. We
loan packages are available and the qualifying requirements.
becoming more innovative and offer a variety of packages, such as
for first time buyers or preferential rates for graduates. Your bank, as much
as you like them, might just be your worst option for a bond.
in good economic times, banks become extremely competitive in
customers. Understand, that you are their livelihood – without
close down. The customer is king and you need to flex that consumer
are slowly moving away from the big daddy approach of banks to a more
supplier/customer based relationship.
companies with the lowest rates sometimes have very conservative
guidelines, and may not be willing to make loans on certain types of
or to buyers who are marginally qualified. We can tell you which
loan officers will go the extra mile to provide excellent service to
that the transaction closes.
the banks have had to come to terms with the fact that many customers
than perfect credit history and have adopted a more flexible approach
regard. Unless you are a truly bad credit risk in terms of past credit
behaviour, one of the banks is going to want to say yes to your
which affect your bond application :
at hand - Banks only have a limited amount of funding on hand or to
which they have allocated to bond financing. This changes all the time
an dthe bank with the most funds will be more willing to lend. Those
with lesser funds at the time will allocate this to the best customers
Appetite for Lending - This goes hand in
hand with funds available but banks also decide from time to time
whether they wish to get a larger segment of teh bind market or not.
The higher their appetite the better your chances of betting a bond.
Area or Suburb - No bank wants to be over exposed in a particular area
and will therefore limit their percentage of the total bonds in any
suburb. One might not really want to provide any more bonds in your
chosen suburb while another is quite prepared to.
Sectional Title Complex - As with suburbs, the bank will not overexpose
itself in a particular complex. The reasoning is simple. Should
something go horribly wrong with the complex and values drop, they will
not carry the full loss in value themselves.
Segmentation - Banks are always assessing which market segments are
highest risk and you might find yourself in a price group that the bank
wishes to be more conservative in its lending. Additionally, there is
ongoing political pressure to provide loans to lower/middle income
groups and this could well be in your favour if you are in this
article on Bond Originators to assist you
in looking at the options
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
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