Work with a bond originator to get the best deal on your new home

Buying a home is a substantial long-term financial commitment, so it’s advisable to work with a bond originator who will not only save you money but also streamline the process so that you have a better chance of securing an affordable bond.

“Sourcing comparative bond quotes is one of the easiest ways to ensure that prospective buyers get the best deal. With the current inflationary pressures and high interest rates, these comparative quotes become even more valuable,” explains Rudi Botha, CEO of BetterBond. A bond originator sources quotes from multiple banks by applying for a bond on behalf of the loan applicant to secure the lowest possible rate.

“Not only do the different bond quotes help secure a better interest rate, but the more banks applied to, the more favourable the interest rate is likely to be,” says Botha. “With the interest rate currently holding steady at a 14-year high of 11.75%, the ability of a bond originator to shop around for the best possible deal is critical.”

A buyer who opts to apply directly to the bank for a bond usually only applies to one. “This unfortunately puts the odds of securing a bond at all or nothing. However, those who work with a bond originator who applies to multiple banks have a significantly greater chance of bond approval,” explains Botha. BetterBond’s average approval rate when applying to one bank is about 53%. This increases considerably to 79% when BetterBond applies to four or more banks.

As with any large purchase or investment, preparation is paramount, adds Botha. “By obtaining pre-approval from a bond originator before house hunting, a buyer has a better idea of what they can afford and a much greater chance of securing a bond. The approval rate for clients who are pre-approved with BetterBond first is 95% of all applications submitted to banks on their behalf,” he says.

“No one has time or money to waste, and especially not when it comes to investing in a new home. Bond originators ensure the best deals with the greatest chance of success.”

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