Professional Lending Specialists “Bond Originators” vs. Bank?

Many potential home owner clients ask us why they would consider using us as opposed to going directly to the Bank themselves.

This is a fair question if you ask me, so this Fact sheet will hope fully clarify this for you.

Years ago everyone went to a bank, no questions asked, there really was not an alternative. The problem was that if one bank could not help you, you would have to visit bank after bank until you found one that could. Even then, how could you really know whether you were getting the best deal in the market?

Then along came Bond Originators “Mortgage Plus”. This was fantastic, as it also bought about significant competition into the heavily, big bank dominated market. This ultimately resulted in far more competitive pricing for all clients.

A  Bond Originator like Mortgage Plus is essentially a professional lending specialist who looks through all of the different lenders possible products and finds two to three home loans that are not only the most competitive available from all the major home loan lenders in South Africa, but also ensures that all the home loan features and benefits that you require are included in the selection.

Ultimately, you make the decision, however you know that the decision is based on your own parameters, and represents the most suitable and competitive mortgage loans available from a large pool of lenders.

Myth: The most significant myth that exists is the fear that you are paying more to use a Professional Lending Specialist like Mortgage Plus than you would by going to the bank directly. That simply is not true! The Lending Specialist earns their commission from the bank, not from you the client.

Making it Easy!

Remember when you had your own bank manager that you could call to help you when you needed some extra funds on top of your home loan to put that pool in, or to buy that investment property? Relationships were paramount, and you returned to that person time and again as they looked after you. Now it is very rare to have that kind of relationship from a bank.

A Professional Lending Specialist like Morne Prinsloo – 079 047 5172 can build that relationship with you and manage several lending relationships between several banks. For some investors for instance, they do not want all of their eggs in one basket, and having the same contact point for all of their home loan facilities is a very convenient way of managing their home loan portfolios.

We help you complete all of the necessary paper work, take the stress out of the home loan application by managing the bond application through credit and as we know the lending policies of each lender, ensure that the home loan is submitted with everything required to make it a smooth process.

So why choose a Professional Lending Specialist over a bank?

• We specialise in Home Loans – That is all we do!
• Significant experience in the position
• You the client are the boss, not the bank
• You can build a long term relationship with the same home loan specialist
• We have access to all of the mortgage options from most lenders in throughout South Africa
• Flexible, we can work in with you to make it happen.
• We own our own business, so we need to make sure you have a great home loan / mortgage experience.

Remember, we are professionals with many years experience in the home finance industry, and our business is all about giving you total satisfaction. We understand how banks think, and therefore take the stress out of dealing with them directly. We become your personal bank manager with the lender to ensure that your experience is a great one.

We are also here for you when you need to ask a question. Anytime!

If you would like to speak to a Professional Mortgage Specialist about your lending requirements, please phone Mortgage Plus Bond Originators on:

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