Why you shouldn't apply for a home loan without a bond originator
Who wants to school themselves in ratios and amortisations and securitisations when there’s more appealing homework to tackle – like choosing fabric swatches and light fixtures? But before you can hit Builders to canvas the paint aisle you have to get the right financing for your new home.
From independent advice to better interest rates (and better results), using a bond originator as your personal home-loan consultant comes with some major perks. “A bond originator is a very useful partner for the first-time homebuyer,” says ooba CEO Rhys Dyer, who explains that these bond experts will assess your financial situation as part of a ‘needs analysis’, and match your requirements to a wide range of loans from banks and other financial institutions; managing the process right through to settlement.
Here are five more good reasons to consider using a bond originator
- A bond originator will search for a deal that meets your needs. This provides access to a large range of loan options without you having to do any of the legwork.
- The consultant will have access to loan rates as well as fees and charges at his or her fingertips so it’s easier to make a straightforward ‘apples for apples’ comparison of loan costs.
- Consultants also have good relationships with banks, and can often negotiate a very competitive rate. Banks receive a significant amount of business through bond originators so it’s in their best interest to work closely with them.
- The consultant’s experience in the home-loan industry will help you make informed decisions and allow you to feel confident throughout the process.
- The best news is that you won’t need to pay your bond originator: instead, they receive a commission from the bank on the loans they settle.
What to expect when you meet with your bond originator
Your first meeting will usually take around an hour, and in that time, a qualified consultant will:
- Ask what you are looking for in a home loan and understand the particulars of your situation
- Calculate how much you may be able to borrow and what your repayments will be so you’ll know what sort of range you can buy in
- Help you choose the loan and associated features that meets your needs
- Explain the application fees and other charges associated with the loan
- Explain the home-buying process end-to-end including making an offer, getting legal advice, exchanging contracts and transfer
The consultant will walk you through the application for the loan of your choice – if and when you are ready. You’ll need to have some documentation and information handy; your consultant will tell you what you need to submit to the bank you’ve chosen.
You should feel informed and confident in the next steps in the process when you leave your first appointment. And the good news is that your consultant will be with you every step of the way making the process very clear and simple.