Home loans

[abandonallhope]

Is it better to apply for financing and shop around yourself, or is it ok to let an estate agent's bond originator do it for you ?

What is the difference between it and financing a car ? (Apart from the much higher interest on car loans, and the fact that a car is a liability)

 

[die_koos]

If you have a good relationship with your bank, you might be better off applying directly with them. A bond originator might shop around for you but remember, they take a cut which you have to pay. Most of the big banks have an online application process so it should be realtively easy.

 

[moklet]

A home loan is normally a loan for a longer period than a car loan. Home loan is backed by a normally appreciating asset whilst a car loan is backed by a depreciating asset.

 

[stixx]

If you have a good relationship with your bank, you might be better off applying directly with them. A bond originator might shop around for you but remember, they take a cut which you have to pay. Most of the big banks have an online application process so it should be realtively easy.

The bank will pay the bond originator's fee. I suggest use the bond originator, but also apply to your bank personally. You can see which offers the best rates, and you are not obliged to accept any of the offers from the bond originator or bank.

There is little difference between a Home Loan or Vehicle Loan, the period and interest are your main differences. Also, as mentioned by Moklet, the type of asset is also different.

 

[Wasp_21]

Please note. Once you have enlisted a bond originator, you cannot approach the banks directly. Further, the bank will not deal with you directly either, only the bond originator. As mentioned above, if you have a personal relationship with your bank, exclude your bank from the originator's list. Let them go to the other banks. Otherwise, it won't cost you anything to use an originator, and they can sometimes get a very good rate for you. It is still your decision to accept or not. The banks view an originator as "extended sales people" for the bank. They bring the clients to the banks, so no real problems there.

 

[guest2013-1]

Shop around yourself, the estate agent gets commission for referring you to a bond originator and you'd have more bargaining power and not be subjected to pay commissions they don't disclose etc (everyone gets a cut, cut out the middle man and save a bit)

The difference between a car loan and a home loan: interest. Home loans are calculated on a daily basis whereas car loans are calculated on a monthly basis.

That's why an account like FNB one-account works on cutting down on interest because your entire salary helps lower the daily interest until you use it for your normal debit orders/expenses.

 

[stixx]

What is the best interest rate using a bond originator?

 

[Other Pineapple Smurf]

What is the best interest rate using a bond originator?

Depends on the LTV of the bond for the property and your risk.

 

[Other Pineapple Smurf]

I'm currently looking at buying my first house at the moment and one thing I can say is that things change so fast that what applied two months ago may not be valid anymore.

The advantage of a bond originator is they don't get paid if you don't accept the bond so its in their best interest to get you the best deal. They also know the system and know how to get you the bond in the first place.

I would also recommend you getting a pre-qualification / loan pledge certificate from the bank or bond originator.

I got mine last week from a bond originator (OOBA) and it helped convince a seller to accept my OTP subject to existing buyers not coming up with the bond by 5pm today. The certificate showed the seller I was serious and had access to credit.

* I'm still waiting from Standard Bank for my loan pledge certificate and its been 3 weeks now.