Bond Originators South Africa – 0861 11 11 93

Before there were any bond originators, you had to go through the process of applying for a home loan / mortgage with every single bank individually. You had to go to their office during regular hours. This took extra days and hours of trying to shop for home loans with the best interest rates you could live with. When you hire a bond originator in South Africa, things work very differently. Bond Originators like Mortgage Plus will often come to your home, even after normal business hours. They take you through the application just once. No matter how many other lenders they will approach on your behalf. This means that you do not have to spend hours going t hrough the same home loan process repeatedly.

Mortgage Plus have signed contracts with all of the bigger banks as well as many of the smaller independent banks and a list of kinds of lenders that they have worked with in the past. The thing that is good about this is that when you get the okay from multiple places, you can choose which one you want because by being able to compare home loan interest rates and terms you can pick the one that offers you the very best terms.

Mortgage Plus bond originators do all of the negotiating with all of the lenders, banks and financial institutions in order to get you the best home loan interest rates possible in South Africa. When all is said and done, Mortgage Plus Bond Originators can usually get between a 0.5% and 2 % lower than the current prime interest rates. Estimates in South Africa say that the origination industry will save their clients around 5% per year in rate concessions. The lenders, banks and financial institutions all know that they have to be very competitive if they are to get any business. There will be times when the negotiations have been completed, a lender, banks and financial institutions will tell the originator like Mortgage Plus that they will give them an extra percentage discount beyond what the best lender has negotiated. The originator will not reveal what has been negotiated but will give each of the lender, banks and financial institution one final time to bear the best rates or terms that the originator has in hand.

It is also a good thing that regardless of all the red tape the NCA causes, bond originators somehow manage to take your application through the process of getting approved in just about half the time it would normally take you if you were approaching the lender or bank directly. Mortgage Plus takes 4 working days to get you a bond approval. Therefore, you not only save on rates and get better terms, but you also save time and we all need to save as much time as we can.

It is no secret that banks ar en’t very enthusiastic about the bond originator industry. They have to give up some of their margin and what they would have earned on insurance as well, when bond originators secure the bond on behalf of their clients.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Deposits still key for prospective Owners in bond application process

Although 100% home loans are being approved by banks in select cases, potential property owners are advised to save for mortgage deposits, due to the numerous economic benefits for prospective home owners in the long-term.

This is according to Morne Prinsloo, one of South Africa’s leading bond originators, who says that on average 36.5% of applications for 100% bonds were granted by the banks during March 2011. “This is in comparison to the 48.33% of bonds that were granted with a 10 – 20% deposit during the same period.”

Prinsloo says that deposits offer both long and short-term benefits for potential home buyers. “Although the current property cycle is seen as a buyer’s market with many good investment opportunities for potential home owners, the current economic climate has caused financial institutions to be risk averse with stringent credit criteria and lending policies. It is therefore more difficult for consumers to lending policies in this environment.”

He says that banks often look favourably at buyers with a deposit and will be more open to negotiate a competitive interest rate on a home loan, as a result of the reduced risk to the bank. “Besides improving your chances of getting your home loan approved, a bigger deposit could result in a more favourable bond rate that will save you in interest over the term of the loan. As a home loan is paid back over a long period, generally between 20 and 25 years, even a small deduction in the interest rate on your bond, can save you thousands of Rands in interest payments over time.”

He says that having a deposit available will also improve the buyer’s chance of securing the purchase and speeding the transaction up. “Properties on the market are currently taking longer to sell. A deposit will strengthen the buyer’s negotiating power with the seller because of the improved chance of securing finance.

“Some sellers are also more willing to accept an offer if the buyer has a deposit, as there is a higher likelihood that they will complete the sale.”

He says that consumers looking to purchase property in the future should be saving towards deposits by putting a certain amount away each month. “First time buyers are encouraged to start saving for a deposit as early in their working careers as possible. As time goes by, interest will accumulate and assist towards securing home loan finance. It is recommended that applicants should try and secure at least a 10% deposit towards the purchase of a property, but banks will however look at any deposit from 5% up as favourable.”

Prinsloo says that consumers that don’t have cash or immediate access to funds can investigate alternative sources such as personal loans or deposit guarantees – an insurance policy specifically designed to assist potential home buyers to secure a deposit.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za