Loan Companies Secure Lower Interest Rates For Home Loans In South Africa
While bond originating companies have been operating in other countries for a long time, they emerged in South Africa only about nine years ago. It is their purpose to find the home buyers home loans at lower interest rates and get them approved. South Africa now uses this service freely and people like it.
This service gained popularity quickly. For example, in 2007, approximately 60% of all new home loans in South Africa were secured through bond origination. Apparently consumer confidence in this service blossomed due to consumers placing their confidence in it. This is due to convenience and the ability of the mortgage originators being able to secure the lowest interest rates for home buyers.
Which is preferable, going from bank to bank, submitting the same information on an application, or, completing an application once and having it submitted to banks and lenders for you? Most people like to save time. Rather than you conforming to banking hours, the bond origination service conforms to hours most convenient to the consumer. They will meet with you in your home, evening hours included.
After you fill out the one application and go through the process, they will act as intermediary between you and the lending institutions. They secure the best offers for you. You relax and choose the one you prefer of all available options. Consumers save, collectively, R 5bn in lowered interest rates per year. The banks are admittedly, not fans of the loan originating services.
The consumer also gets lower interest rates. The loan is secured in half as much time as when dealing directly with a bank. Wise loan seekers see the advantage of dealing through an intermediary. There was an act passed, the National Credit Act, that forbid the banks to require home buyers to buy their insurance policies directly through the banks. This frees the borrower to choose an insurance company that offers lower interest rates.
It is hard to believe you gain all these advantages without paying a fee. The loan originator is paid a fee by the lender you select. You not only get the best deal, but you don’t have to pay a fee for it.
Therefore, it is obviously advantageous to secure your home loans through one of these services. Having your financing arranged and knowing you will be ready to choose favourable home loans is going to give you confidence as you search for the home you dream of. Your estate agent can let prospective sellers know you are ready to move ahead quickly when you find the property you want to purchase.
Did you know that bond originators have the ability secure lower interest rates for Home Loans in Southern Africa? Get the best inside skinny on exactly how they achieve this in our Home Loan Documentation guide.