Bond Originators... yes another thread

[Corvus]

I write this today to try possibly understand, or expose, the bond originator process we have in SA.

There is no naming and shaming here, I am merely a ?? :wtf: ?? person where it comes to bond originators after this experience.

I got an offer to purchase, started the process with the bond originator with some specific instructions and pretty much waited it out for a little while.
Instructions where as follows: Don't submit any applications to FNB & Standard Bank. That is it.
(Old prescribed debt bla bla before the questions why not FNB & Std. Accounts from my early 20's owed like R50 on a credit card that they now want R50k. But this is not the topic.)

Back to the bond application.
A few days after sending all my documents through I get a notification from Transunion that a credit check has been done by Std... I knew it would be declined.
Moving along I asked the originator what other banks where used. Apparently Absa and SA Home Loans.

More waiting and a week down the line I request feedback because very little information is being provided by the originator to me through the process. All I get told is Absa and SAHL are processing the applications and currently everything looks good. You are approved in principle for 80% Absa, 90% SAHL.

Since this is not my first property purchase, I understand that when there are approved in principles there are documents that require signatures so appraisers can go view the property.
I ask for the documents and originator says they are on training and not in the office.

So to speed up the process because I am rather annoyed at this stage at the slow progress of everything I call Absa and SAHL accordingly to get the AIP's.
I get told no one has any applications in my name.

Call the originator, ask for reference numbers or names and contact info they can direct me to at Absa/SAHL.
No response other than "I have done them. I don't understand what could be wrong."
I even called the originators head office and there is no trace of any applications for my ID number.

End of the story I did decide, and found it quicker (less forms actually) and easier, to contact the banking institutions myself and process applications. Received approvals in 24 hours from both sides, 90% bonds. And approved in principle documents immediately. It comes down to choice on interest rates now, etc.

But is this what bond originators do out there? - Just waste our time and efforts?
Do bond originators do applications with banks on the back end of their systems?
What exactly is the use of an originator when all they do is process a transaction?
Do they only shuffle papers around at the end of the day!

Everything just felt like it was a dodge application and personally I now feel originators are a waste of time.

Drop some comments/opinions/experiences out there on using bond originators vs doing your own applications, and if anyone else has experienced the same.

 

[SauRoNZA]

Seems you just had a very bad experience.

In both cases mine were great and very helpful and also fast and efficient even when I sent them back multiple times to the different banks to get better rates.

One thing worth noting though is that if the bond originator applies with a given bank, don't bother going directly to them as you'll either just be told no or you'll simply get the exact same rate. You can't use the bond originator to bargain the bank against itself basically.

 

[dekana]

Can you not just apply for the bond yourself?

I've done it a number of times at all the banks with minimal effort.

Unless you like paying R5k+ to someone that provides this "service"

 

[Napalm2880]

I had zero issues with my bond originator. Had to fill out quite a bit of paperwork (expenses, assets, etc.) - all the usual stuff and I could choose 4 institutions to submit my applications. Everything was arranged via e-mail and a single telephone call. 1 week later and I had feedback from ABSA, Standard, FNB and Nedbank. FNB took the longest but came back with the best rate.

 

[Napalm2880]

Can you not just apply for the bond yourself?

I've done it a number of times at all the banks with minimal effort.

Unless you like paying R5k+ to someone that provides this "service"

I'm pretty sure it's the bank that pays the bond originator, not you.

 

[Surv0]

I had an awesome experience with the originators I used, very prompt, constant updates, worked the request well enough to get us the cover we needed.

I recommend them when ever I can.

 

[Surv0]

Can you not just apply for the bond yourself?

I've done it a number of times at all the banks with minimal effort.

Unless you like paying R5k+ to someone that provides this "service"

Banks pay originators commission, you dont pay them a cent.

 

[Corvus]

Can you not just apply for the bond yourself?

I've done it a number of times at all the banks with minimal effort.

Unless you like paying R5k+ to someone that provides this "service"

There was no fee for the service.

I had an awesome experience with the originators I used, very prompt, constant updates, worked the request well enough to get us the cover we needed.

I recommend them when ever I can.

I guess I lucked out with a bad egg. Gah.
My concern is still with how Absa & SAHL had no trace though of the applications on their side.

At least I have the bond approved at the end of the day. And definitely glad to see the end of the tunnel to moving out of Windsor West! Got to see the positive/silver lining to this all.

 

[eye_suc]

One thing worth noting though is that if the bond originator applies with a given bank, don't bother going directly to them as you'll either just be told no or you'll simply get the exact same rate. You can't use the bond originator to bargain the bank against itself basically.

This happened to me. Things were not moving along so I went to the bank directly and basically got told to sod off.

On the upside, thanks to the originators I found out that ABSA was trying to milk the bejayzus out of me, after being a loyal customer for more than 10 years.

 

[grapjas]

My last property we had a really bad experience with them as well. This time around I applied to Nedbank and Standardbank directly and instructed the bond originator to go to FNB, ABSA and RMB.

We had approvals from Nedbank and Standardbank within a week at rates well below prime.
Although the experience with the bond originator was very pleasant and we were kept in the loop the whole way we did not get full bonds from the banks they applied for and the interest rates were also quite a bit above prime.

Easier and quicker to just do it yourself. The banks also sometimes have promotions where they would discount lawyers fees or give cash back if you take the bond with them that you do not get if you go with an originator.

 

[Corvus]

Feedback has come in from the originator company.
There were 2 offers signed on the property. My offer first in the queue.

Both initials are "J".

So mass confusion was caused. My application was sent to Absa, approved in principle, however not registered on the main system.
The other J applicant was also sent through to Absa, approved in principle, but registered on the main system.

Long story short. Originator had no clue as to which J was being updated on each call I gather.
Agent had signed 2 offers and not been forthright stating who was the first offer to process.

As per the bond originator company my application was first in line because it would be a seamless due to ITC being clean, 911 score, cash for deposit available as well as fees for attorneys, etc.

It all boils down to people not actually looking at the documents they have on their desk/email.
My offer was R10k less than the other J, and my application most probably had their (I assume from the way the conversations held on the phone) details on it.

So the end result. People mix up documents which results in wrong information being submitted such as income and expenses on an application, which scr3w3d with my affordability amounts on the Absa application, showed a judgement on my name that was the other persons ITC records, and so on.
Now I have 3 enquiries on my ITC records because of a simple stuff up.

I have been approved by SAHL, so lets see what the originators can resolved by rectifying my application at Absa.

 

[Corvus]

The banks also sometimes have promotions where they would discount lawyers fees or give cash back if you take the bond with them that you do not get if you go with an originator.

I am hoping that will come into play somewhere along the lines, alternatively I should request the originator company to foot the bill for the stuff up.
On the additional fees, the purchase is R730k so we at least get the transfer fee's tax relief that came into play last year I think and only need to come up with attorneys fees.

 

[Surv0]

Recommendation:

Ooba bond originators....

 

[Valerie Breedt]

All Bond Originator posts

I had an awesome experience with the originators I used, very prompt, constant updates, worked the request well enough to get us the cover we needed.

I recommend them when ever I can.

I use the above msg as it carries the most sence. I'm a property developer. I must add, most of the msgs posted here is not fair. If you had a bad stakeout with yr bond originator, its yr fault. You may say you are not happy and have all clarified.
Wrt commission - whether you go direct to the bank or via a bond originator, your bond is the same. The bank pays the com. You benefit as the originator knows how to get u the best rate. Banks are in for business and not for saving you
Wrt - the conveyancer is the Selers choice.

Hope this helps

 

[Eti1]

whether you go direct to the bank or via a bond originator, your bond is the same.

You benefit as the originator knows how to get u the best rate.

Hello Valerie. Thanks for your insight. But isn't the above slightly contradictory?

 

[Hosehead]

Bond originators are in relative terms fairly new to the SA real estate industry ( last 10-15 years)
Basically they are just middlemen in a pile of middlemen in the real estate transaction.
In a perfect world with no estate agents one would simply make an offer to a seller in a private sale and have ones attorney draw up offer and subsequent conveyence and transfer after one had approached ones own bank for a home loan.( if a loan is required)
However since many banks offer different rates, the theory is bond originators will shop around for you and get the best rate for you
Sometimes they do but sometimes you are better off getting your own rate from the bank you already have a relationship with.

 

[rodga]

I got a better rate doing it myself than the bond originator could get. When I asked if they could ask the bank to beat the rate I got, they said the banks don't look at other offers I have. Still asked if I'm accepting her offer lol