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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.

Private banker vs Bond originator

Article summary

  • Private bankers are the first port of call for many homebuyers and they offer expertise and guidance when you apply to your own bank. You can trust them, especially, where you have a personal relationship with your private banker.
  • What a private banker cannot do is apply to more than one bank. By contrast, a bond originator, also known as a home loan comparison service, can apply to multiple banks on your behalf (including your own), and then negotiate with the banks to ensure you get the best rate and take advantage of the best deals available in the market.
  • A home loan comparison service gets paid a commission by the banks, so their service is completely free to the home buyer. As a bond originator is only paid if you choose to take one of the home loan offers from the major banks that are made available to you, it is a partnership with your bond originator to get you the best deal.

Homebuyers have a lot more options available to them now than they did in the old days. Home loan originators have made it possible for a single home loan application to be sent simultaneously to all the major banks. No longer are you reliant on going into a branch (or previously, the bank manager) for home loan approval or on being one of the lucky ones to have a private banker. That means you no longer have to go through the rigorous process of applying separately for a home loan to all the major banks. You can get an expert originator to do it for you with only one application. That’s where a home loan comparison service comes in and really delivers.

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, you can see your home loan originator as your “private banker” to all the banks.  ooba Home Loans will designate an expert consultant to walk your home loan application journey with you, every step of the way.  Our service is rated No.1 on Hello Peter and our customer testimonials say it all.

Your ooba “private banker” consultant will have made sure that, if your own bank rejects your home loan application, or if the offer you receive isn’t for exactly the home loan you need, you have potential offers from other banks ready at hand.  We know how important that home you have found is to you, and how the clock can be ticking.  Let us assist you to ensure that you don’t lose out on your dream home.

bond originator can streamline the home application process to all the major banks (including your own bank with a single application) and deal with all the banks on your behalf. Although originators 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 and if that is your own bank, or if you just prefer to stay with your own bank, an originator will support you fully in that.

Advantages of using a bond originator include:

  • They will assist you in preparing a single application and submit it to multiple banks, including your own bank, on your behalf. Since the lending criteria varies among banks, you may have a higher chance of securing bond approval with certain banks, and some may even provide you with a more favourable interest rate or a product that is specifically tailored to you, for example if you are a professional or self-employed or need a 30 year loan term.
  • They will help you gather all the necessary documents.
  • They can advise you on how to clear your credit record, which improves your chances of securing home loan approval.
  • They can get you prequalified, which means they assess your chances of qualifying for a home loan, and provide you with a solid idea of what you can afford. You can get prequalified by an expert at ooba home loans, or use their free, online, DIY prequalification tool, the Bond Indicator.
  • They help you formulate a plan for applying again if your home loan application gets rejected or if you are approved for a lower home loan amount than you requested.

A bond originator boosts your chance of success

While you may have a good relationship with your private banker and they will support your deal, statistics show that using a home loan comparison service like ooba home loans increases your likelihood of getting a home loan.  The reason is simple.  If your home loan is declined by your own bank, ooba Home Loans will have already taken you to the other major banks and lenders.  Experience shows that other banks are almost as often as not (4 out of 10 times) willing to lend to you or take you on as a client, even if your own bank declined your home loan application.  Certainly, where your own bank has approved your home loan, they will want to compete for you as a customer.

The service is free

A bond originator doesn’t get paid by you, they get paid by the banks and only if you accept a home loan offer that is the best deal for you. 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 and complete alignment. In addition to this, ooba Home Loans – South Africa’s first full home loan comparison service and the market leader, offers a range of tools that make the home buying process easier. Start with their Bond Calculator (if you want to know how the banks will generally assess what home loan you can afford), or use the ooba Home Loans Bond Indicator to do your no obligation credit check and to get a prequalification certificate. Finally, when you’re ready, you can apply for a home loan.  All at no cost to you and without any obligation.  Take the guess work out of the home loan application process and get an expert on your side.

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Star Rating

Average rating of 4.86 from over 4 550 reviews

Simply The Best

Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.

Tia J

Excellent Service

Jay Govender and Maleshini Reddy from OOBA provided outstanding assistance and guidance in securing our home loan. Response times were excellent and they were professional and friendly.

Brice G

Bond Application

Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.

Butana M