What happens once you've submitted your bond application to your bond originator?

We've talked about the benefits of making use of a bond originator service to get your bond when buying a home. Once you have submitted all the necessary documents and an accurate account of your monthly expenses, the bond originator will submit your bond application to various banks for you. What's next?

BetterBond applies to more than one bank on the buyer's behalf to secure a lower interest rate, or a rate concession. By approaching more than one bank, BetterBond can negotiate a better rate concession because the banks compete to offer the best deal based on the buyer's risk profile. Banks determine this risk differently, which affects the rates concession each will offer.

BetterBond's average interest rate concession when applying to, and negotiating with, four banks is 0.61% which, at a prime lending rate of 11.75% could bring a buyer's interest rate down to 11.14%. This would reduce the monthly bond repayment on a R2 million home by R839 from R21,674 to R20,835.

Bond originators have long-standing relationships with banking representatives so they have access to key people who make decisions. This helps streamline the homebuying process and speeds the journey up.

For more information, watch the video.

Property Matters season 2 – Episode 12