select
|

Originators have a better rate of success

Whether you’re buying your first home or your fifth one, you have a much better chance of being approved for a home loan if you apply through a mortgage originator than if you try to handle things alone.
 
“And the reason for that is simple,” says Shaun Rademeyer, CEO of BetterBond Home Loans, which accounts for more than 25% of all residential mortgages being registered in the Deeds Office and is SA’s leading bond origination group.
 
“We have a motivation and multiple application process that allows us to ‘rescue’ many of the applications that are initially rejected by one bank and get them approved by another lender - to the extent that we are now getting approval for at least seven out of every 10 applications we receive.”
 
“In the 12 months to end-April, for example, we were able to rescue almost 26 000 applications,worth more than R18bn, that had initially been turned down- which was a 5% improvement on our rescue rate for the previous 12 months.
 
“In addition, some 7000 of the rescued applications, worth around R5,3bn, were applications that had originally been declined by the clients’ own banks.”
 
Indeed, he says, although all the major banks have been more willing to lend to home buyers in general over the past 12 months, there has been an increase of almost 9% in the number of own-client applications that they have rejected. “It is thus much better for homebuyers to apply through an originator and have the option of immediately turning to other institutions if their own banks turn them down.
 
“Meanwhile, we would like to dispel a few lingering misconceptions about what mortgage originators do and how they operate. First of all, there is no charge at all to consumers for our service – and nor does the homebuyer who obtains a loan through us get charged a higher rate of interest.
 
“In fact, our knowledge of bank requirements and processes is so extensive that most of our clients end up paying a lower rate of interest than if they had gone to a bank directly, and are able to make significant savings on the long-term cost of their homes as a result.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 25 Feb 2017
      Accurate property value estimation is often considered an art as much as it is a science – it’s not always easy to pin down that mysterious “x factor” with hard statistics.
    • 24 Feb 2017
      The appointment of the conveyancing attorney is an important decision when selling your home. The conveyancer has to deal with all the parties to the transaction and coordinate a number of processes so that everything comes together at the right time.
    • 24 Feb 2017
      Each month homeowners receive a bill for the rates and taxes applicable to their property, but what are these municipal rates used for and how is the amount worked out?
    • 23 Feb 2017
      There is no denying that the beautiful and historic Bo Kaap is South Africa’s most colourful ‘hood - but in South America there is a town that many considers the most colourful town in the world.
    • 23 Feb 2017
      If the City of Gold is calling your name and you are wondering where you are going to hang your hat at the end of a busy day then wonder no more as we take a look at five new properties for sale in Johannesburg.
    • 23 Feb 2017
      While the increased transfer duty threshold is a welcome relief, real estate experts all agree that it is not all good news for the home owners.
    • 23 Feb 2017
      Minister Pravin Gordhan had a difficult budget speech to deliver on the 22nd of February as the economy struggles through its largest under performance since the 2009 recession, with the added challenge of a R30.4bn tax shortfall. The economic growth forecast remains unchanged at 1.3% for 2017, 2% for 2018 and 2.2% for 2019.
    • 22 Feb 2017
      Finance Minister Pravin Gordhan announced today that properties under R900 000 will not attract transfer duty tax - this was previously R750 000.
        
    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