25 November 2011.
If you want a home loan, your best chance of getting one is still through a mortgage originator.
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.”