More Home Loans are Approved using Bond Originators
Category Property News
One of the greatest milestones in life is purchasing your first home where you can finally say; you have a place of your own and an asset that provides short- and long-term security. The peace of mind that comes with being a homeowner is incredible and it is often a result of hard work, having a stringent savings plan and ultimately, discipline.
For many, the most daunting part of this process is applying for a home loan (bond) from a banking institution, especially after considering that in recent years a large number of bond applications were rejected by banks. In fact, in 2017, only 47% of bonds were approved, leaving more than half of the applicants feeling very disappointed.
Fortunately, this lacklustre approval rate took a positive turn in 2018 when 60% of bond applications were approved - making it the highest approval rate in over ten years since the National Credit Act was implemented. Industry professionals attributed this improvement to low-interest rates, improved debt management among applicants and slower growth in property prices due to the existing buyers market. As we near mid-2019, we can expect to see many new homeowners as the favourable bond approval rate will continue throughout the year.
Besides economic factors, the increased appetite among banks to lend is also due to a rapidly growing number of aspirant homebuyers turning to bond originators for assistance with their bond application.
The originator can be seen as a personal home-loan consultant, who is your partner in the application process, from providing expert advice and assessing your financial situation to negotiating lower interest rates and managing the settlement with a chosen bank. Additionally, they will advise you on the recommended documents needed to increase the likelihood of securing a loan. And the best part is the service is completely free.
Saving Time and Money
Latest statistics show that approximately 65% of all bonds are processed through bond originators and this percentage is set to soar as more and more people realise it is the easiest, most affordable and productive way of applying for a loan. It also saves aspirant home buyers a significant amount of time as an originator will assist with explaining the different types of home loan options available from various banks and provide all the necessary paperwork in the application process.
All reputable bond originators have built strong and lasting relationships with major banks, allowing them to confidently negotiate and liaise on your behalf to ensure that there is a greater chance of securing a loan at the lowest possible interest rate. Originators also understand the importance of taking every step of the application process seriously, therefore, the emphasis is placed on expertly preparing your application before presenting it to the banks.
With over 20 years' experience in bond origination, End User Finance (EUF) has established relationships with nine of the country's leading banks. It is also in affiliation with another leading originator, Mortgage Max, and together they have received the award for the Best Independent Bond Originator in South Africa for an incredible 14 years.
The success of EUF stands firmly on the foundation of integrity, teamwork and efficiency to ensure that each aspirant homeowner who comes to us has the best chance of securing a home loan. Not only do we track your application on your behalf, but we are also the point of contact once your application has been submitted.
If the exciting time of purchasing your own home has arrived, ensure that you have the right expertise by your side. Whether you're a new home buyer or if you are relocating, downsizing or upsizing, End User Finance is here to be your personal home-loan consultant. Contact us for more information.
Author: CSi Property Group