How do Bond Originators make their money ?

[Dolby]

Is it through the Interest Rate, ie bank says 10.00% and the offer you 10.45% - 'scoring' the additional? Basically, is it in their best interest to really get the absolute lowest rate?

Or is it simply a once off Thank You payment from the bank?

A few days after shopping around, my originator came back with the best - which was FNB @ 10.45%. In this day and age, I wasn't to concerned and thought it decent, so accepted. But when I got official quote, it was 9.75% - so I signed yesterday.

Just wondering if the originator would be happy, unhappy or not care less ?

 

[TelkomUseless]

I think it's a "finders fee" type of thing. Banks give them a certain amount per bond/ or value per bond.

You got better deal. So BO can't complain.

 

[therealace]

Service fee charge

 

[envo]

There's no finders fee or service fee. They get paid a % commission from the bank and the attorneys they use to facilitate the transaction. This is a once off fee.

They normally have established relationships with the banks (dedicated account managers) that help get the quotes/offers to you and they do multiple banks at once (which is why you'd want to use them, they take care of all the ****ty paperwork)

The interest rate concerns you and the bank only. The originator doesn't care about this, unless they're a financial institution themselves and bond you directly from their own pockets.