Bond origination myths debunked

Sometimes the unknown creates uncertainty, and uncertainty can prevent you from making good financial decisions – especially when it comes to buying a home. It is no secret that many people don’t understand what a bond originator does. And as a result they avoid this important service. In this article we debunk some of the most common misconceptions around bond origination so that you can see the value it offers.

Myth 1: Bond origination doesn’t have a high success rate

False. BetterBond has a much higher rate of success when it comes to getting home loans approved. Our average approval rate is around 77%, compared to the current average approval rate of 35% for buyers who apply on their own. This means that we help more than 34,000 people a year to buy their dream homes. And that's our dream – for all South Africans to own a home of their own!

Myth 2: There is more paperwork when you go through a bond originator

False. BetterBond manages the whole application process for you, from helping you to complete the application forms correctly and collating supporting documents, to writing individual loan motivations and submitting applications to multiple banks. This means that you don't have to spend time taking all your paperwork from bank to bank to secure a home loan. Furthermore, you only complete one application for multiple banks and not one application per bank.

Myth 3: Processing a home loan application takes longer when there is a bond originator as a “middle man”

False. BetterBond can usually process a home loan application in a matter of days. And, our expert consultants don't leave anything to chance. They motivate and monitor the progress of each application so that you're always in the loop. You don't have to wait endlessly for an answer. Our consultants have years of experience in applying for bonds. They know exactly what you need to secure the best home loan deal.

Myth 4: Pre-approval for a home loan is an unnecessary step in a long, tedious process

False. If you pre-approve through BetterBond, you streamline the process down the line. Also, if BetterBond gets you pre‑approved you’ll have a good idea of your purchasing power. This means you can narrow your search down to homes you can actually afford. It also reassures sellers that you're a safe bet. To pre-approve through BetterBond for free click here.

Myth 5: If the bank declines you, the bond originator can’t do anything more for you

False. BetterBond will identify issues that can prevent you from getting that home loan, and we'll even suggest how you can fix those issues before you apply. We may advise you to save up for a bigger deposit or clean up your credit record – all to improve your chances of bond approval at a great interest rate. If the bank declines you, we can approach different banks and negotiate on your behalf to find a deal that works for both you and the bank.

Myth 6: Bond originators don’t apply to your own bank

False. BetterBond approaches all the major banks including your own. You get the best home loan deal – because all the banks compete for your business.

Myth 7: Bond origination comes at a cost – hidden within the home loan

False. Our services are completely free. It is not true that the banks charge higher interest rates to cover bond origination costs – in fact, the opposite is true. They charge lower rates because it is less work for them if your application comes via a bond originator like BetterBond. They pay us a once-off fee when your home loan is granted, but this cost is not passed onto you at any point.

A home is one of the biggest things you'll ever buy. Let BetterBond get you the best deal on your home loan.