Originators still your best bet

That’s the unequivocal view of Rudi Botha, CEO of leading originator BetterBond, who says: “Four years ago, homebuyers were firmly focused on getting the best interest rate – and mortgage originators proved over and over that they were the best at doing that.

“Now the number one objective is to get a home loan – and the value proposition of applying though an originator is even more pronounced.”

This is evident, he says, from the fact that BetterBond alone accounts for more than 25% of all new home loans currently being registered in the Deeds Office (compared to 18% of the total during the boom years).

“The background to this is that while only 50% of applications are initially approved by lenders, BetterBond is able to get a further 16% approved by giving potential borrowers the proper advice, and by motivating the applications and sometimes submitting them to more than one bank.

“We are thus able to show a 66% success rate.”

Botha notes that this is particularly relevant for self-employed individuals, for whom it is particularly difficult to get a loan at the moment. “There is usually a daunting amount of paperwork involved when such individuals want to apply for a home loan, but originators know how it all needs to go together and will help them present their applications properly, so that they have the best chance of success.”   

Indeed, he says, the loan application process is much more streamlined for all homebuyers who work with originators, “because our loan consultants know exactly what information and paperwork is required by each bank when submitting an application. They can also establish the size of loan for which you would qualify and advise as to the size of deposit that will be required.

“This means that when applying through an originator, you can expect an answer more quickly than if you ‘go it alone’ – and still at the best available interest rate. And of course, the origination service is free to the borrower.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

  • Adriaan Grove - posted 29 Nov 2011 09:00 AM                                    

    I agree you increase your chances of getting your loan approved, especially for first time home buyers.
    Just wonder if the bond originators will still be here next year with the banks cutting the commission.

  • Greg Nathan - posted 29 Nov 2011 07:35 AM                                    

    Orginators are able to help you cast the net wider. You may also benefit from the increased probability of getting your loan approved.

Latest Property News
  • 23 Nov 2017
    As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
  • 23 Nov 2017
    The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
  • 23 Nov 2017
    If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
  • 22 Nov 2017
    Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
  • 22 Nov 2017
    While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
  • 22 Nov 2017
    The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
  • 21 Nov 2017
    The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
  • 21 Nov 2017
    When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
Subscribe to the MyProperty Newsletter

Last Name  
Email Address  
Email Frequency
Share this Page

For Sale Property
Rental Property
More Options
Connect with us