You may be fortunate enough to have sold your house or be in the process of selling and will be using that money to fund the purchase of a new home but, in any event, if you require a bond, it’s a good idea to start looking around. Get as many quotes as you can because bond originators will vie for your business!
It really is easier to use a bond originator because approaching the banks can be a nightmare. There are reams of paperwork involved.
Bond Originators do the legwork and will provide you with an objective overview of all options available.
There are lots of bond originators out there, be sure to get as many quotes as you can.
The first thing to do is to get all your paperwork ready so that you only have to do it once and then submit it to as many bond originators as you can.
Having gone this route ourselves, you very quickly get a feel for who you can rely on. Some bond originators keep you in the loop by phoning you regularly and send emails with the quotes they have received from the various banks. Others don’t even bother getting back to you. If you have to wait or phone and check what the status is, move on to the next bond originator.
The best way to find a bond originator is go online and enter the search term “bond originators south africa” – a whole heap will come up. You can fill in your basic details and requirements online such as:-
- First name
- Last name
- ID number
- Contact number
- Second contact number
- Email address
- Type of finance required viz, query, new, second bond, bond extension, switching bonds
- Gross salary
- Do you currently have a bond?
- Marital status
The bond originators will then start contacting you for further information. Based on the criteria you filled in online they will be able to tell you if you qualify for a loan of the amount you stipulated. That, of course, does not guarantee you a bond. Credit checks will be done and your paperwork needs to be in order.
Amongst other things, your credit profile, affordability and loan to value ratio determine your interest rate on your home loan. Whether you apply for a bond through a bond originator or go directly to the bank, the same scoring model is used. All your details are captured into the lenders’ credit scoring models and your interest rate is calculated.
Once the bond originator contacts you he/she will fill in all your details on the application form via telephone or, in some instances, will visit you at your home to complete the necessary documentation.
The paperwork you will need to originate a bond and submit to the bond originator is as follows:
- Copy of ID
- Three months’ bank statements
- Three months’ salary slips if employed
- Letter from your accountant, if self-employed, which indicates your income
These documents can be faxed through to the bond originator; in some instances the bond originator will visit you at your home to collect the documents and sign all necessary documentation.
Are there any costs involved in using a bond originator?
No. There is no cost involved in using a bond originator as the lenders (banks, financial institutions) pay the bond originators a fee to complete the application process.
The bond originators will then shop around to get you the best rate from the bank and notify you of the various rates they get from the different institutions they approach. You then decide which one is the best for you. Once you have decided which institution you are going with, your bond originator will then hand you over to an attorney who will do the bond registration work.
From that point you will liaise with the conveyancing attorney who may require additional documentation from you and will require you to sign the necessary documents for the lending institution. It could take up to six weeks for the bond to be registered.