select
|

If you need a home loan, you need an originator

The banks have lowered their deposit requirements in most house price categories over the past few months, and they are approving a higher percentage of home loan applications – but that does not mean that they have thrown caution to the wind.
 
On the contrary, says Shaun Rademeyer, CEO of BetterBond Home Loans, SA’s biggest mortgage origination group, they are looking even more closely at the credit histories and financial capabilities of potential borrowers, “with the result that more than half (56%) of all home loan approvals are only achieved now after the application has been submitted two or three times, possibly to different financial institutions, compared to 49% that required multiple submissions a year ago”.
 
In other words, he says, while higher property sales volumes and increasing prices are giving the banks more confidence about lending into the real estate market, they are still dubious about the state of most consumers’ household finances.
 
“And on top of this, the loan criteria of the various banks are often quite different from one another, and can also change quite frequently, as can their deposit requirements and the interest rates they charge on home loans – a scenario that makes it extremely difficult, if not impossible, for individual consumers to decide where they might get the best response to their home loan application.”
 
Certainly, they can’t count on that being their own bank. In the past year, 19% (or almost one in five) of the approvals achieved by BetterBond have been for applications that were initially declined by the borrower’s own bank but were then submitted to other lenders and ‘rescued’.  A year ago, this percentage was 16,5%.
 
All of which underlines, says Rademeyer, the need for home loan applicants to enlist the help of a reputable and successful mortgage originator that can provide a comparison of the various borrowing options on offer at any particular time, and will motivate their applications individually and submit them to several different banks if necessary.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
    • 21 Feb 2018
      These days most buyers are using online property portals like Private Property when house hunting due to the convenience, up to date information and variety on offer. “The property portals have revolutionised the way buyers shop, but they do need to be cautious – viewing photos online is no replacement for viewing the property in person,” says Bruce Swain, CEO of Leapfrog Property Group.
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK