Service levels from SA Bond originators

[Neilhopwood]

I am going through the process of using an originator for a bond. He has so far submitted the application to ABSA, Standard Bank and Nedbank. I bank with ABSA and was surprised to see that they came back with quite a poor rate (.4% above base). When I asked the originator to see if they would better it, he said he would call me back later in the day.
The next day I still hadn't heard from him so I sent him a email to see what was happening. All I got in return was a one line mail saying they were not prepared to change the offer.
ABSA Bank then called me 4 days later to see if I was happy with their offer, I explained I wasnt and I had a better offer from another bank. 10 mins later they rang me back with an improved offer.
I called him wrt this, he was too busy to talk but then I got a phone call from his assistant saying that Standard Bank needed proof of employment - obviously I had given him all these details.

The bottom line is I feel I am not getting decent, never mind good, service from this originator.
Where do I stand. Can I ask the bank to take him out of the loop?

 

[broken1]

The question is raised, why use an originator? I suppose he has already provided the service, it's quite a mission completing multiple applications with multiple supporting documents.

I doubt you have to pay him separately (bond originators commission is usually covered by the bank for home loan transactions) so why try and get him out of the loop. Once you have an approved and accepted bond, he doesn't really do anything else. I would be a little afraid pissing someone off who has everything from a copy of your ID to your bank details.

 

[Neilhopwood]

Broken1 Fair comment about the paperwork, but surely one of his main roles is to get the best deal for me. Clearly in this case he hasn't. I know that its the bank paying him, but if I do a bad job I do not get paid so why should he.
Are there instances where an originator would get more commission for making clients take a higher rate?

I just feel I am getting poor service from this particular originator.

 

[Viper25]

Stay away from Bond Originators. I got a much better rate by going into the bank and sitting with
a home loan consultant. The Bond originator I originally went with messed things up really badly.

I had to revoke his application and re-apply for the home loan. Suffice to say the originator was
pretty pi$$ed off.

 

[broken1]

Broken1 Fair comment about the paperwork, but surely one of his main roles is to get the best deal for me. Clearly in this case he hasn't. I know that its the bank paying him, but if I do a bad job I do not get paid so why should he.
Are there instances where an originator would get more commission for making clients take a higher rate?

I just feel I am getting poor service from this particular originator.

The way I understand it, their commission percentage is fixed upfront.

Secondly, the banks aren't really interested in negotiating rates - unless of course you have a competing offer (they wouldn't want to loose your businesses now would they). So, when he went back to ask for a different rate, I can only assume the other banks hadn't come back with approvals yet. When you spoke to ABSA, you said ahh but Standard can offer me 0.2% below that, so they matched it (or slightly bettered it).

Bond Originators are quite powerless when it comes to pricing and etc, unless they have a specific relationship they can play on within the bank.

Personally, I believe you would be better off transacting on your own behalf through your relationship manager and having the RM (being an employee of the bank) motivate for a better rate based on longevity of your relationship with the bank, conduct of your account and financial position.

 

[Neilhopwood]

broken1 If their commission is fixed on the loan amount then ok. The rest of your comments make sense too! Next time I know better! Thanks for you input.

 

[BobsLawnService]

We also had issues with our bond originator. We ended up approaching the bank directly and getting a better rate. They also just add another layer where things can go wrong.