Bond Origination: The Smart Way to Apply for Home Loans

Bond origination is a relatively new concept in the South African property industry, dating back around 12 years ago. However, since its introduction, it has completely revolutionised the process of applying for home loans and assisted thousands of aspirant homebuyers to reach their goals of homeownership.

According to Nicolle De Lucia from De Lucia Group, a bond originator is a registered individual or company who sources a home loan with a participating financial institution (banks and non-bank lenders) on behalf of a person looking to finance the purchase of their new home.

"Originators have become disruptors in the industry and each year more home buyers are turning to these professionals when applying for a home loan."

In fact, De Lucia says that new data shows that over 60% of home loan applications are submitted to financial institutions through a bond originator and this percentage is set to grow as more people become aware of these services.

According to her, the five biggest advantages of employing the services of a bond originator are the following:

1. Best terms and rates

Bond originators have good working relationships with all major financial institutions - this makes it easy for them to negotiate on your behalf and help you secure a home loan at the lowest possible interest rate. They have been known to save homeowners between 0.5% and 0.25% on their bond costs, which in real terms, can amount to thousands each month.

2. Save time

People today have very little free time on their hands due to busy work schedules, because of this, bond originators manage the entire home loan application process so that aspirant homeowners don't have to. From start to end, originators assist in completing application forms, collating supporting documents, writing loan applications and submitting applications to various financial institutions. This hands-on approach goes a step further as they motivate and monitor the progress of each application, ensuring that most applications are processed in half the time.

3. Convenience

Before the services of bond originators were made available in the country, aspirant homeowners would have to go to various financial institutions with all their paperwork to try to get their home loan application approved at the best possible rate. Fortunately, originators have taken the hassle out of this step by doing the hard work for you - they will consult financial institutions on your behalf and ensure that you get the offer most suited to your unique needs. The best part of it is, you only need to go through the application process once, regardless of the number of lenders you apply to.

4. Insurance

If your home loan application is successful, a bond originator can then help you with the next important step, that is, finding home insurance options by consulting various insurance companies.

5. Free

Perhaps the most attractive feature of bond originators is that their service is completely free, and what's more, the fees charged to register a new loan remains the same whether the homeowner approached the bank through an originator or independently.

De Lucia Group

Bond Origination

With years of experience and unmatched expertise, De Lucia Group has a team of bond originators who will facilitate your home loan application and negotiate on your behalf with all the major banks.

Our services include:

● New home loan applications
● Further advancing existing bonds
● Debt consolidation

To find out more about our bond origination services, speak to us today and we will guide you through the process.