The key to securing a home loan in tough economic times

Betterbond is currently experiencing a decline rate of up to 75% in the number of home loans being submitted due to stringent market conditions and the tightening of the banks’ lending criteria. However, due to adding their expertise as an originator, the end result is a decline rate of less than 50%. “This leads to a significant number of sales being successful, which otherwise might not have been concluded, says Rudi Botha, chairman of Betterbond.

Despite the current conditions in the property sector, originators such as Betterbond possess the proficiency to assist potential home buyers. Many consumers are currently shying away from purchasing property due to the stricter lending processes in place. This is where origination becomes a key player in assisting potential buyers. When applying for a home loan, the originator arbitrates and facilitates the process, thus clearly indicting the significance and benefit of using an originator. It is difficult to obtain the best rates in the shortest period, therefore, having a professional on your side is recommended, more so in these tough times.

“Home buyers need to ensure that they make the best choice with the information available to them at any given time,” says Botha. “Just as specialists are needed to perform brain surgery, mortgage originators are needed to facilitate the home loan granting process, which has become even more technical and complex in the current economic environment. Mortgage originators understand all the various banks’ criteria for granting home loans, the processes a home loan application needs to go through and they also have the skills and knowledge to advise their clients on the best route to take and options available to them. Whether they are first time buyers, clients seeking a building loan or purchasing vacant land, different conditions apply. Advising clients on aspects such as loan to value and being indicative of the size of the deposit required, as well as required documentation, proves to be significant as the structuring of an application can be the difference between approval or decline.”

Using a facilitator that knows the technicalities of the home loan process is of enormous benefit for those looking to purchase property. In these challenging economic times, the role of the originator has become more evident as a provider of expertise and efficiency in the process of home buying. This is further supported by the fact that in excess of 60% of home loans in the country have been granted through originators.