Tom and Wendy have recently agreed to settle after securing employment in a small town. As part of their long term goals, they have decided against staying in a rented property, rather opting to purchase their own earlier so as to finish off debt way before retirement. Neither of them is pretty sure however on where to start, especially because they need a mortgage bond to finance the purchase of their first home.
Securing a bond to purchase a property in South Africa is mainly done in three ways. These will be discussed briefly hereunder in no particular order.
The first of these ways is by approaching a bond originator to guide you through completion of the application forms, submission of the application to several banks and assistance in comparing the offered deals on your behalf from an informed point of view.
Securing a bond is fraught with technical and legal hurdles which one would rather navigate through with some expert guidance and advice to weigh the better options. The financial implications are significant if approached without due caution, therefore it is imperative that home seekers intending to secure mortgages to finance their purchase do so from an informed perspective.
Bond originators are able to negotiate favourable home loan terms and interest rates on behalf of their clients as they are fully conversant with the internal requirements required by the banks, and therefore would submit an application knowing that it stands a better chance of approval after their own internal assessment. At Phoenix Group, we offer personalised and professional service in this respect, with expert support and systems from the aggregator.
We remove the common hassles and hurdles in order to make the process easier and much more convenient for our clients. What’s more is that this service comes at no cost to the client, meaning fewer burdens on the pocket. The differences in loan terms are often significant, and variations in interest rates often go as much as 4 percent. Phoenix Group understands the difference this makes from one offer to another, and therefore we commit ourselves to finding and negotiating better deals for our clients.
Alternatively, one can approach their bank or any other bank to apply for a bond. Most banks have Home Loan sections with consultants to assist Home Loan applicants complete the documentation and to submit the requirements that are needed for the bank to assess and consider the application. Nothing prevents the consumer from approaching other banks simultaneously, so that in the event that an application has been declined by one bank, the consumer shifts hope to the applications made at other banks.
Thirdly, Specialist Bond Lenders are another avenue that one may consider in the quest to secure a Home Loan. Specialist Bond Lenders such as SA Home Loans, are privately financed institutions which provide residential mortgages. The advantage of using these lenders sometimes is that their selection criteria may be less stringent than banks as they are in direct competition in this business.
Further, it is not surprising to find Specialist Bond Lenders granting a bond to a consumer where a bank previously declined the application. Further, their approach is flexible enough to factor in individual circumstances of the clients they serve. Regardless, they too have business interests to protect and even with less stringent requirements they still decline some applications.
Above are the ways that a bond seeker may use to secure a bond and it remains their choice to pursue the avenue that suits their needs. It is advisable however that one needs a partner in their corner to navigate through this process from an informed perspective as the costs of uninformed decisions on the pocket are significant.
Phoenix Group Bond Originators are focused on securing the best deals on your home loan and we commit to providing the most memorable service in this respect. We specialise in bond origination and bridge finance amongst other areas of speciality.
Click here to do an online prequalification for your home loan now!.
The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter. One should not act or refrain from acting on the basis of any content included in this site without seeking legal or other professional advice. The contents of this site contain general information and may not reflect current legal developments or address one’s peculiar situation. We disclaim all liability for actions one may take or fail to take based on any content on this site.
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