Have you used our bond origination service?
Category General News
You're at the start of one of the most significant decisions in your life: buying a new home. When it comes to home financing, you'll be glad to know you have a trusted ally by your side through bond origination. This service works to get you the best possible deal and take the stress away from finding a good home loan fit. And the best part? You can walk into any Century 21 South Africa branch and get the help you need from an in-house bond originator - for free! Here's a closer look at how bond origination ensures you secure your dream home on your terms.
What is bond origination?
Bond origination, also known as a home loan comparison service, improves your chances of getting approved for a home loan, acting as an intermediately between you and the bank. A bond originator assesses your financial situation, makes recommendations, helps you compile your paperwork, and submits your application to multiple lenders on your behalf.
However, they also take this a step further. Bond originators have strong relationships with banks, understand what information they need, and what lending criteria they look at. In this way, they can structure your application persuasively, speed up the process, and secure its success.
South Africa is home to several bond originators, with the best including ooba Home Loans, BetterBond, and SA Home Loans.
Advantages of using bond origination
Is it better to use a bond originator? Most definitely. Your bond originator is a valuable resource that can make the bond application process work for you. Here are some reasons to reach out to one for help:
Do it for all free: You don't pay upfront costs when using a bond origination. Instead, your originator is paid a commission by the bank for helping to secure your business and these costs are not passed onto you.
Guarantee your success: Because bond originators depend on the commission from a successful bond approval, they work hard to present your financial history and current circumstances in the best possible light. If, for example, you need a stronger credit score, they will coach you to help increase it. A bond originator is also helpful if you're a self-employed individual or have a foreign national spouse which makes your application trickier.
Over the years, this service has become highly skilled and built on good relationships with banks. Statistics released by ooba Home Loans for Q2 2023 alone show their customers had a high approval rate of 82.8%.
Save time and effort: Bond origination streamlines the application process. Instead of applying to multiple banks, you just need to fill out one set of paperwork which your originator will submit to all major banks. They will field any questions on your behalf and come back to you if any further documentation is required.
Get a better deal: By submitting multiple applications to banks on your behalf, your home loan expert will stimulate competition between banks. This will help you secure the best financing terms i.e. the lowest possible interest rates and best duration to pay off your loan. With the information they gather, they can put together a comparative analysis between your loan offers to help you make a careful decision.
Because originators are incentivised through commission, they won't settle for the first offer but carefully negotiate to ensure you have the best options on the table. Banks are also incentivised to offer favourable terms to secure future business from originators.
Enjoy expert guidance: The bond application process can be daunting, especially for first-time buyers. Thankfully, your bond originator is an expert who will walk you through the financial complexities. You get the services of a trusted advisor who is happy to answer questions on your mind. They will ensure your application is filled out correctly and work quickly to get it processed.
The bond origination process
Once you've signed an offer to purchase, you can approach a bond originator to put together your application and submit it to multiple banks. The documents required vary per buyer but generally include an identity document, three months' payslips, and a detailed income and expenditure statement.
Your bond originator will liaise with banks and negotiate the best home loan deal and interest rate based on their offers. It can take roughly 3-5 working days to hear back from banks, provided the information you've given is correct and accepted.
Besides these services, bond originators can also assist with pre-qualifications and credit score checks at the start, so you can shop around with confidence knowing what you can afford.
Our in-house bond origination service
Before you type "bond origination near me", you will be glad to know this service is available at Century 21 Johannesburg South, along with any other Century 21 South Africa branch you visit. Our in-house finance expert is happy to assist with bond pre-approvals, financing applications, and provide any bond finance advice. View our Johannesburg properties for sale and get in touch with our team today.
Author: Century 21 South Africa
