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Originators’ clients are way ahead on home loans

The value of home loans granted to clients of the BetterBond group, SA’s biggest mortgage originator, continues to rise month-on-month and was 9,7% higher in June than in the same month of 2012.
 
“And while low interest rates and rising housing demand have contributed to this increase,” says group chairman Rudi Botha, “it can mostly be attributed to our growing success in achieving home loan approvals through proper motivation and submissions to multiple banks – a process that really does give prospective homebuyers a much better chance of obtaining a loan than if they try to handle things on their own, and costs them nothing.
 
“Our figures show, for example, that more than 40% of home loan applications that are submitted to the client’s own bank will be declined – but that at least a third of these can be ‘rescued’ if we have the opportunity to submit the application to other banks.
 
“Indeed, about 38% of all the applications we make now only succeed because of the multiple application process. However, the fact that we are able to make use of this process means that we are currently able to get bond approval for three out of every four applications we submit.”
 
The BetterBondgroup’s latest statistics show that it has achieved some R5,4bn worth of formal home loan grants for its clients in the past two months, compared with just over R5bn in March and April.
 
This increase was underpinned by growth in the average approved bond size, which was 3,8% higher in June than in May, even though the rate of house price growth is slowing.
 
Meanwhile, the value of home loan registrations in the Deeds Office as a result of the home loan grants obtained by the group is also climbing.“It usually takes about three months for a home loan to be registered after it has been accepted or ‘taken up’ by a homebuyer,” says Botha, “so most of the bonds granted in June will only be registered in September.
 
“However, we are able to see that the value of bonds registered at the Deeds Office by our clients showed year-on-year growth of 12,7% in June. Compared to this, the year-on-year increase in the total value of home loans registered in the Deeds Office was just 2,9%– which shows, once again, that the clients of originators such as BetterBond have a much greater chance of achieving home ownership than those who don’t make use of their expertise.”


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