Deposit valuable to get a home loan

When applying for your mortgage bond, if you are able to put down a deposit, it is not only more likely that your bond application will be approved, according to Ooba, South Africa's largest mortgage lender, you will also qualify for a better priced loan.

Ooba's statistics over the last few months have shown that you have approximately double the chance of having a homeloan approved if you put down a 30% deposit than if you put down no deposit at all. As of July 2010 the average deposit made on all bond approvals was just under 20% of the purchase price.

Get yourself a mortgage originator - you have nothing to lose, its free!

 With the property market recovery in full swing, the mortgage origination industry has been warmly re-embraced as a necessary home loan acquisition channel by the local banking sector.

Home buyers have realised that the playing fields have changed, and now more than ever need the services of a good mortgage originator.  Before the introduction of the National Credit Act (NCA) in 2007, bond originators mostly got the best lending rate for clients.

However, the value of using a bond originator has strengthened even further, as securing the actual approval has gained in importance.  You need a skilled bond originator who can submit your application not only in the best possible light but simultaneously to multiple lenders to ensure a greater chance of approval and on the best terms. Additionally, duplication of documentation is avoided ensuring fast approvals while benefiting from a single point of contact to manage the entire process.

Remember that for every bond application declined by one bank, you have a 30% chance that your bond will be granted by another one!

Information kindly provided by Ooba