CAN YOU AFFORD NOT TO USE A BOND ORIGINATOR
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CAN YOU AFFORD NOT TO USE A BOND ORIGINATOR?
The role of the bond originator is to procure a bond on your behalf. They essentially act as an intermediary between you and the banks, assisting you in compiling one set of paperwork, and then submitting the home loan application to all the major banks on your behalf.
Why you should use a bond originator
Pre-qualification: If you get pre-qualified you know your budget and it takes the anxiety out of the transaction.
More options: A bond originator will search for a deal that meets your needs. This provides access to a large range of loan options without you having to do any of the legwork. A bond originator is a very useful partner for the first-time homebuyer. These bond experts will assess your financial situation as part of a 'needs analysis', and match your requirements to a wide range of loans from banks and other financial institutions, managing the process right through to settlement.
Better interest rates: The consultant will have access to loan rates as well as fees and charges at his or her fingertips so it's easier to make a straightforward 'apples to apples' comparison of loan costs.
Bond originators often negotiate a better interest rate than consumers can. For example, a 0.5% discount on a R1 million, 20-year mortgage (so 7.75% vs prime of 8.25%) means you would pay back R1.970 million vs R2 million, a R75,000 saving over 20 years.
Dealing with banks: Consultants also have good relationships with banks, and can often negotiate a very competitive rate. Banks receive a significant amount of business through bond originators so it's in their best interest to work closely with them.
Less paperwork / admin: Going through a bond originator means you complete only one set of paperwork that your home loan expert then submits to all the major banks. If you were to go about obtaining a home loan without a bond originator, you'd have to complete and submit a set of paperwork for each bank.
Helpful advice: Takes the ANXIETY out of the transaction.
It's free! The best news is that you won't need to pay your bond originator. Instead, they receive a commission from the bank on the loans they settle.
Author: Seeff Somerset West
