Private bankers vs bond originators for home finance
Is applying for a home loan through your private banker the best option, when you have an alternative with bond originators? We examine the pros and cons.
Homebuyers have a lot more options available to them now than they did in the old days. No longer are you reliant on your private banker (or previously, the bank manager) for home loan approval. Better yet, no longer do you have to go through the rigorous process of applying separately for a home loan to all the major banks. You can get a professional to do it for you with only one application. That’s where a home loan comparison service comes in.
Private banking versus a home loan comparison service
No doubt many prefer the familiarity of applying through their private banker, who they may already have a relationship with. Furthermore, if you act directly through your bank, you may assume that they will also be able to assist you more efficiently in any future issues you may have with the home loan.
On the other hand:
Your private banker’s first priority is to get the best deal for their bank.
If the application is rejected, you’ll have to apply to a different bank, or wait until circumstances between you and your bank change. In the meantime, you may lose out on your dream home.
Fortunately, you have alternatives, in the form of a bond originator (also known as a home loan comparison service). A bond originator can streamline the home application process and deal with all the banks on your behalf. Although they have a good relationship with all the major banks, they are not beholden to one particular bank; their objective is to get the best deal for you.
Advantages of using a bond originator include:
A bond originator boosts your chance of success
While you may have a good relationship with your private banker, statistics show that using a home loan comparison service like ooba home loans increases your likelihood of getting a home loan by 36%.
The service is free
A bond originator doesn’t get paid by you, they get paid by the banks. They‘ll provide you with multiple quotes from the banks, but once a home loan is approved, they receive a commission from the bank for a successful deal, rather than charging the client.
All of these factors contribute to a higher success rate, as well as a smoother home loan application process. In addition to this, ooba home loans – South Africa’s largest home loan comparison service, offers a range of tools that make the home buying process easier. Start with their home loan calculators; then use their free, online, DIY prequalification tool, the ooba Bond Indicator, to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.