Are you in the dark as to why your bond application was declined, or why a bank will not give you the amount you requested?

Rob Lawrence, says two main sets of data go into the assessments of applicants looking for bonds on residential property.

“First, the applicant’s credit profile (i.e. his track record as a payer on accounts) will be investigated. Each applicant’s behavioural pattern will then be scored against a number of set criteria designed to give a picture of his lifestyle and steadiness. The banks will use this to ‘score’ his lifestyle risk.

“It would be a plus factor if, for example, he has lived in his home for over three years. If he has a landline telephone, that too is considered good. If he has been in the same job for over two years, that would be to the banks an indication of his stability and creditworthiness.

“These and other factors are fed electronically into the bank’s rating system and can easily result in the applicant being turned away when he is in fact a good credit risk.

“It is, therefore important for the applicant to talk to a bond originator ” www.mortgagepluscc.co.za“ who can present his case in a favourable light.

“For example, the applicant may have had a promotional transfer, hence the reason for his being in a home only a few months or his previous firm, through no fault of his own, may have been liquidated or merged, forcing him to find a new job.

“The electronic system does not give explanations – it is a purely mechanical scorecard – but a good bond originator will show the bank the other side of the story – if there is one.”

Applicants, said Lawrence, often think that if they reduce the size of the bond they are asking for, they will have a better chance of success – but, if the scorecard behavioural findings are negative they will disqualify the applicant whatever the size of his bond request.

On the accounts side, said Lawrence, it is essential to show that no payments have been missed, and to bear in mind that banks have access to credit data on all previous bonds, overdrafts, store accounts, cell phone and telephone accounts and much else.

The banks use this information to evaluate a client’s payment profile – to discover if he is a good or bad payer.

“If he is a bad payer, no bank will want to lend him money.”

Lawrence warned that if an applicant tries to hide his payment defaults, this will be discovered – and it will prejudice his chances and could well cause the bank to decline him, or make him a much lower offer.

“A client may have had a very good reason for going into arrears, for instance he might have run up accounts due to a divorce or have high medical bills. A good originator can motivate a bank to reconsider a credit profile decline, if there is sufficient reason to do so.

“However, where credit records are not ‘squeaky clean’ and the issue is the credit profile (accounts not paid regularly), our team’s advice to bond applicants is to clean up all credit accounts, for at least the next six months, after which it will be possible to show the banks a positive payment profile and then re-apply for a bond.”

CONTACT US
For more assistance with regards to Applying for Home Loan Finance .
Email: morne@mortgagepluscc.co.za
Ph: 011.327.4489
or Complete This Online Form

Bond originators are a fairly new enterprise in the general bond market, and there is thus not much knowledge available regarding what they do or in fact what they are.

And so, to answer this burning question:

A bond originator, or home loan originator, is specialised in offering a service to all home loan applicants who need assistance with their home loan applications. This is a 100% free service made possible through their contacts at all the major banks in South Africa.

To refine this definition, a bond originator is in the business of making the process of taking out a mortgage like a walk in the park.

Mortgage Plus is currently one of the most popular-used of all bond originators in South Africa. They are home loan specialists and pride themselves in the provision of top-notch service to all their clients looking for expert advice regarding taking out the most suitably reasonable mortgage.

The Cost-Effective Solution to Getting Expert Mortgage Advice

With Mortgage Plus you are assured of getting the best advice possible in the concern of getting the mortgage that will be most ideal for you. Not only this, but Mortgage Plus prides itself on being the most cost-effective solution to getting expert mortgage advice; and they are fully-capable of matching this. This is because it costs nothing to use Mortgage Plus as your bond originator. No costs are incurred whatsoever as Mortgage Plus bond originators receive a fee from the Banks Home Loan Department.

Mortgage Plus will assist you in navigating through the complex world of home finance, and will furthermore do the legwork to provide you with an objective overview of all mortgage options available.

Having ever-strengthening relationships with all the major banks in South Africa, Mortgage Plus  is able to give their clients the widest range of choice along with the best rates. What is further beneficial to the individual in making use of a bond originator such as Mortgage Plus  is that bond originators submit thousands of home loan applications annually, and for this reason they have the power to negotiate a better rate for you than you would have as an individual.

Quick and Hassle Free Online Mortgage Service

Using Mortgage Plus  as your bond originator is the most hassle free way of applying for a mortgage as they have the necessary skills and experience to help each and every one of their clients get the lowest home loan rate possible.

Whether you need a new home loan, a home loan extension, or are wishing to switch your home loan, Mortgage Plus  can help you. This bond originator even has made a free online service available to make this happen quickly and efficiently.

To apply online at www.mortgagepluscc.co.za or call them on 011.327.4489

An interesting fact is that 80% of all bonds in South Africa are processed by bond originators. Does this not tell you something? Get in contact with Mortgage Plus today and discover for yourself the reason why more and more people are tuning to bond originators for assistance with their mortgage.

What is it that you are waiting for?  Mortgage Plus  knows the business of home loans.