Originators vital to speed up housing delivery

Housing developers will be hard-pushed to meet the huge pent-up demand for affordable homes – and create thousands of jobs in the process - without the help of mortgage originators.
So says Rudi Botha, CEO of leading originator Betterbond, who notes: “All eyes are currently on the so-called gap market, which is individuals or households earning between R9000 and R16 000 a month who can afford homes costing about R600 000 and less.
“And with the transfer duty threshold having recently been adjusted to exempt such homes from transfer tax and the government on the verge of introducing a mortgage indemnity fund to stimulate bank lending to this type of buyer, it should be all-systems-go to start eliminating the housing backlog.”
The trouble is, he says, that there just aren’t enough homes to meet the demand in this sector of the market, which is also being fuelled by low interest rates – “and that developers are unlikely to be able to get on and provide them without the help of originators to speed up homebuyers’ access to finance”.
Botha notes that the success of a new development generally hinges on how fast the new homes can be sold and transferred  - which in turn requires that lots of “end users” or homebuyers have quick access to home loans at competitive interest rates.
“Which is where the help of originators – at no cost to the developer - becomes invaluable. In the first place, we provide major assistance in the administration of home loan applications. Our experience is that the rate of conversion in this sector is pretty low, and that there is a lot of wastage unless applicants are pre-screened. So we do all the credit and affordability checking before applications are made, and we also manage all the supporting documentation for each application.
“In addition, we can make multiple applications using a single document, which further streamlines the application process and improves the chances of each applicant being granted a loan.”
What is more, he says, there are other big benefits for consumers in having an originator on hand when buying in a new development. These include the provision of information about the “hidden” costs of buying a home and the home loan repayment process, impartial advice on the most appropriate home financing options, and assistance to obtain the most competitive interest rate possible – all at no charge to the consumer.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us