A Mortgage Originator is a company that takes the hassle out of trying to find a home loan. These companies submit your application to all the major home loan providers in South Africa on your behalf, and best of all, they will actually negotiate with the banks for a better rate
The originator will then begin the home loan process by setting up everything you’ll need, before submitting the application to the top home loan providers.
By having your application submitted to all four banks simultaneously you’re guaranteed to get the lowest rates on your loan, because your originator is able to negotiate between the four competing banks.
All that’s left for you to do, once you receive your quotes, is to select the bank you wish to process your home loan.
We are there to provide you with the following services as originators:
– Negotiating the best interest rate for you;
– Evaluating your financial situation;
– Advising you on the best way of financing your new home;
– Helping you apply for finance;
– Explaining all the different banks’ home loan options;
– Negotiating and liaising with the banks on your behalf;
– Assisting with all the necessary paperwork to apply for a home loan;
The home loan / Bond Finance market in South Africa has, over the past few years, become very competitive. Not only are the number of mortgage providers in South Africa increasing, but competition among the four major bond providers has really started to heat up.
One reason for this is because bond originators have finally arrived in South Africa. Bond origination has existed for many years overseas and it’s partly because of bond originators that competing banks have been forced to offer better service and better mortgage products.
Through its unique relationship with banks a SA Mortgage Originator is able to apply to multiple banks and get your application approved faster.
1. You don’t need to go through the application process with every bank. The originator will collect all the necessary documentation and setup your application to ensure the process is a smooth one.
2. You only need to complete one application, which will be submitted to different banks. After your approvals are received from the different banks its up to you to decide which bank your wish to go with.
3. Better rates: Because we have a strong relationship with all the major banks we are able to negotiate a lower rate on your bond – which will save you thousands over the term of the home loan.
4. Free Service: Probably the best feature of the bond origination industry is that the service offered is totally free. The bank pays the originator and these costs are not passed on to the client.
Mortgage origination is a process whereby the originator on behalf of the applicant or applicants applies to the various major banks for a home loan.
We all understand applying for a mortgage loan is long involving procedure, many clients that apply for a home loan on there own, need constantly to contact the bank on the progress of outcome of there application which takes out time from there daily schedules.
We as the mortgage originator are there to take the hassle away from the applicants by assisting in applying and providing extensive feedback on a daily bases to you of the application .
There is no cost involved in using us. The service is generally free to the homebuyer. The estate agent is paid a standard commission by us for referring the homebuyer. We are paid a fee by the bank, once the home loan is registered. These fees are usually a percentage of the home loan amount, but is not added to the costs that the homebuyer may occur. An administration fee of R1500 will be administrated to the client if a bond is not taken up. This will only occur if all avenues have been completed and the client request to WITHDRAW from the application.
STEPS OF THE MORTAGE ORIGINATION CYCLE:
Step 1: THE APPLICANT SIGN A OFFER TO PURCHASE FOR A HOME.
Step 2: Estate agent obtains information regarding how your home would be financed?
Step 3: The estate agent then forwards this information to us.
Step 4: Originator will then contact you advising what the different banks can offer you.
Step 5: You then choose an option or a homeloan that is agreeable to your needs.
Step 6: Originator submits the necessary documentation to the bank of your choice.
Step 7: Originator follows up the application process with the bank.
Step 8: Originator confirms with you, your acceptance with the bank.
Step 9: Originator informs you of all the legal requirements and follows-up the process.
A Mortgage Originator cannot guarantee you a home loan.
Thru the daily consulting and liaising with the major banks the originators maintain and establish relationships with the bank; however the relationship that is maintained by the originator does not influence the banks credit decision. The outcome of the home loan is determined by affordability by the buyer being able to afford the home loan and the willingness of the homebuyer to repay it .
USEFUL HINTS ON DEALING WITH
- With regards to the new NCA (National Credit Act ) you have to sign an agreement with an Bond Originator to verify that the information given to them is correct, however if you decide to use them it is to your own benefit to supply them with all the required information and documentation, as soon as possible and on time.
- Do a bit of homework regarding what the different banks offer. Your Bond Originator will inform you of the various products available from the banks.
- You may already have a relationship with a particular bank, and would like to keep all your finance within that relationship. If so, make sure that you mention this fact to your originator, and specify that they apply to that particular bank on your behalf first.
- The originator should follow up the application process with the bank daily and should keep you abreast of what is happening at all time. Ensure that you are kept informed through the whole process, from signing the offer to purchase, to registration and transfer.
- Take time to compare all the different options the originator comes back with. Make sure that you read your contract with the bank. Take note of the period of your loan and your interest rate.
- You are not obliged to accept any of the offers the mortgage originators bring to you from the banks. A fee can be charge for time spent on your application. Make sure to obtain documented proof of your approved home loan.