Home loans – then and now

If you want to buy property, the good news is that banks are approving more home loans. The current stable-interest-rate lending environment coupled with slower growth in property prices means getting a bond for a home is notably more affordable now compared with 2017.

The home loan approval rate is also the highest it has been in ten years. One of the main reasons for this is that there is stronger competition among banks. This is beneficial to buyers as it means there is more opportunity to negotiating a home loan structure and lending rate that works in your favour.

These days applying for a home loan is easier. Applications can be made through one mortgage originator who will then submit to all the major banks through their online system. In the past, the process of assessing a buyer to prove affordability was a painstaking and lengthy process. The method has changed significantly in the past decade.

Bond originators

People are using bond originators – originators provide a free bond application service through all the major banks on behalf of the buyer at no cost. In essence, they are a broker between client and bank. It is the originator’s job to assist individuals to acquire the lowest possible home loan rate and to guide them through the process.

A good bond originator understands the landscape, they have experience and in-depth knowledge of the banks’ requirements and are familiar with lending criteria and legislation.

Using an originator is the easiest, least expensive and most productive way of applying for a home loan. Only one set of forms needs to be completed. Originators work electronically and banks are usually quick to process and respond to their applications.

Primarily, an originator ensures that the buyer receives the lowest possible home loan rate, thus saving thousands of rands over the bond repayment period. The client incurs no costs for the services, the bond originator then receives a fee from the bank once the loan application has been approved and processed.

Bond originators ensure that the buyer receives the lowest possible home loan rate, thus saving thousands of rands in bond repayments.