Bond & Home Loan Originators

The home loan / Bond Finance market in South Africa has, over the past few years, become very competitive and For various reasons, there has been a marked increase in first-time home buyers loans and New Home Loans.  The driving factors include the modern tendency among young people to live with their parents longer to save a deposit.

There is also a slow but steady increase in savings among younger people. Add to this the readiness among financial institutions to take factors such as contributions from significant others and family who will live on the property when granting home loans. This is really good news for the consumer because not only are the number of mortgage providers in South Africa increasing, but competition among the four major bond providers has really started to heat up.

One of the major reasons in this property finance jump for this is because bond originators and home loan advisors in South Africa. Bond Originators like Mortgage Plus (Rated one of South Africa’s Top Bond Originator Companies In 2011) are competing between the banks and the consumers and in return the banks and financial institutions  have been forced to offer better service and better mortgage / home loan products to the client on the street.

Through its unique relationship with banks a SA Mortgage Originator is able to apply to multiple banks and get your application approved faster.

There are lots of benefits in using a Bond Originator like Mortgage Plus for example:

• You do not need to go through the application process with every bank. The originator or home loan adviser will collect all the necessary documentation and setup your application to ensure the process is a smooth one between all the financial institutions throughout South Africa.
• You only need to complete one application, which will be submitted to different banks electronically (Mush faster turnaround times). After you received our approvals (Grants) from the different banks it’s up to you to decide which bank your wish to go with.
• Better rates: Because we have a strong relationship and contracts with all the major banks and that’s we are able to negotiate a lower rate on your Home Loan Quotations – Mortgage Plus will save you thousands over the term of the home loan.
• Free home loan Service: Probably the best feature of the bond origination industry is that the service offered is totally free. The bank pays the originator “us” and these costs are not passed on to you our client.

Mortgage Plus Bond Originators is one of the top online mortgage originators in South Africa. They are also able to offer you some very nice bonuses and discounts. Speak to a home loan consultant about financing your new property or reviewing your existing mortgage.

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

Home repos falling; small part of total

The number of houses that banks have had to repossess due to their owners defaulting on loans, has dropped.

The price categories of most repossessed houses differ at the large banks.

At Nedbank the average price of repossessed houses ranges between R300k and R400k with very few boasting price tags of R1m or more.

First National Bank (FNB) and Absa say some people in all price categories are struggling to pay their loans. Most repossessed houses at FNB resort under the R800k to R900k price category, while “houses with big loans” are problematic for Absa.

Nedbank currently has 1,800 repossessed houses, but they represent less than 1% of its total home loans.

At Absa the number of repossessed houses represent less than 0,01% of all home loans. FNB could not release its figures as it is in a closed period before the announcement of its results. Standard Bank chose not to comment.

The banks attribute the drop in the number of repossessed homes to their efforts to help homeowners to keep their houses or helping them to sell them.

Luthando Vutula, executive manager of Absa Home Loans, ascribes the decrease in the number of repossessed homes to better economic conditions.

However, FNB and Nedbank are of the opinion that consumers are still under pressure.

Jan Kleynhans, CE of FNB’s home loans division, says consumers are still under pressure due to their big debt burden and unemployment.

The banks are doing their utmost not to lose too much money when repossessed homes are sold.

The best way to sell the houses is at private auctions.

André Potgieter from legal collections at Nedbank says the bank will only buy houses back if the reserve price set by the bank is not achieved at an auction. It is also the case with FNB.

Up to 80% of the property’s value is usually achieved at auctions, says Potgieter.

Vutula says “less than 1%” of repossessed homes are currently being sold as people are looking for bargains. “Affordability remains a problem due to the fragile economy.”

Kleynhans says the majority of repossessed homes at FNB do find buyers.

Potgieter says the bank helps clients with repayment options if they go into arrears.

The loan period is sometimes extended when someone is in deep trouble.

The extension of the loan period is equal to a new loan agreement with which the stipulations of the National Credit Act (NCA) is taken into account. It means that some people don’t qualify for a new agreement.

Nedbank currently grants one out of every three home loan applications.

Some of the reasons why banks reject applications for loans include the fact that the applicant is on a credit bureau blacklist or that he won’t have enough money to meet his other obligations if the loan is approved. – Adri van Zyl, Sake24

By choosing Mortgage Plus for a loan, you will get that continual service to make sure you are getting the best deal possible.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za