What a bond originator can do for you

If you are looking to invest in property in 2020, then a bond originator is about to become your new best friend. "What is a bond originator?" you ask. A bond originator acts as a middle-man between you and the various home loan providers, ensuring that you get the best possible deal/rate - and that you only have to fill out the tedious paperwork involved with home loan applications once. In a nutshell, your bond originator will search for the home loan that's right for you.

There's even more good news when it comes to bond originators — there is no cost to you as a property buyer for this service. The bond originator will receive commission from the bank and from the attorneys who facilitate the transaction. Not only does using a bond originator not cost you anything — it can also save you money. Your bond originator will leverage the good relationships that they have with the various banks to get you the best possible home loan deal and the most competitive interest rate possible. Bond originators bring in big business for the banks, so it is in the bank's best interests to give bond originators' clients great deals.

Another reason why an ever-increasing number of South Africans are turning to bond originators for assistance in securing home loan finance is that these professionals will also save you a huge amount of time — if you were applying directly to financial institutions, you would have to submit a separate set of paperwork to each one. Applying to only one bank for the finance for your dream home would be a mistake, because there is no guarantee that the institution that you bank with will offer you the best possible deal for this transaction.

In the tough financial climate in which we find ourselves, banks are becoming increasingly stringent in their lending criteria. The good news is that a bond originator has the experience to know exactly what the banks will want to see, and they can present an appealing an offer as possible to the banks on your behalf. By assisting with an assessment of your finances and credit rating, these professionals can give you a greater chance of securing a home loan. In addition, they can negotiate the best possible interest rate on your behalf. Using a bond originator can also result in a speedier application process.

Bond originators can, in some instances, provide a lifeline for would-be buyers who have approached their bank for a home loan and been rejected. While there are no guarantees, the fact that a bond originator approaches all the banks on your behalf can mean that you get a different — and far more favourable — answer than the one you were initially given. The fact that your home loan application has been rejected does not prevent a bond originator from approaching the banks on your behalf.

There can be a number of reasons why it may be challenging to get a home loan. The first step in the journey to your new home is to use an affordability calculator to determine how much you are likely to be able to borrow. Your home loan application is unlikely to be successful — whether you use a bond originator or not — if you do not have a deposit and have a gross salary of R10 000 per month, but you are wanting to buy a property that is on the market for R1 000 000. Making sure that you are shopping within your means keeps your property search streamlined and helps you avoid unnecessary disappointments.

Jawitz Properties works hand in hand with our trusted partners, ooba homeloans. To start your home loan journey, or to simply find out what you can afford, contact us today!

It's time to find the property of your dreams! Jawitz Properties has a huge variety of listings for sale in every corner of South Africa. Contact us to assist you through every stage of finding and financing your new home.