How bond originators made a semigration dream into reality

When Michael and Tracy Earle decided to semigrate from KwaZulu-Natal to the Western Cape, they chose to use a bond originator to help them secure the loan they would need to buy their dream home. They had some apprehension about making the application, partly because Michael was self-employed and partly because the home they had fallen in love with was significantly more expensive than the one they had just sold. One of the pieces of advice their Jawitz Properties property practitioner gave them was to use a bond originator to apply for their home loan finance.

First things first: what is a bond originator?

A bond originator is a middle-man who works between you and the various banks when you apply for a home loan. When Michael and Tracy applied for their bond through ooba, they filled in one set of paperwork which was then sent to various banks on their behalf to see who would offer them the best home loan deal. To their pleasant surprise, the Earles learnt that there's no cost to the buyer when you use a bond originator.

Buying a property with the help of a bond originator

When asked about their experience of buying property using a bond originator, the first thing Tracy mentions is the peace of mind that comes from having one point of contact. "If we'd applied to each bank separately, we'd have been dealing with a contact person from each bank," she comments. "Thanks to ooba, we were only liaising with one contact person - not to mention the mountain of paperwork that we saved ourselves."

In the Earles' case, the first news that their bond originator had to give them was bad news. Bank A, which had both Michael's personal and business banking accounts, declined their home loan application. The correspondence from the bank indicated that since Michael's business had had a difficult two years, they were unwilling to offer a loan.

Having received this news early in the morning, Michael and Tracy faced a nail-biting day while they waited for news from the other banks. Just before close of business, they got to breathe a sigh of relief when they heard from their representative that ooba had managed to secure them a home loan with Bank B - at a better interest rate than the home loan they'd had on their Durban property had been.

During the course of the next day, they heard back from Banks C and D. Bank C also offered them a home loan, but at a less preferential interest rate than Bank B. Bank D wanted more information about Michael's business and its financial position. Once this information had been provided, bank D also offered the Earles a home loan - but also not at a rate as good as Bank B's offer had been.

Lessons learned from the bond originator experience

"I had been confident that Bank A would offer us the loan we needed," shared Michael. "After years of being their client, their 'no' came as a shock, and I had a very uneasy feeling that if they said no, the other banks would say no as well. Having all three of the other banks come back to us with positive responses bears testament to the advantages of using a bond originator."

"I couldn't believe how straightforward the process of getting a home loan was," added Tracy. "Although we faced a day of stress after getting the first news, we didn't have to do anything else. It was just a case of waiting and it all fell into place."

Jawitz Properties is built on the belief that buying a home should be enjoyable - not stressful. If you'd like to know more about what a bond originator can do for you, or about the other ways that we'll help you get the keys to your dream home, get in touch today.