Better Bond is part of the BetterLife Group Limited. They assist individuals or businesses who are looking for a bond in order to secure a property.
They are a mortgage broker working with all the leading banks in South Africa to find the best home loan deal for you.
Some of the banks they work with include, Absa, Standard Bank, FNB, Investec, Nedbank and RMB just to mention a few.
In this article, we are going to look at what is a mortgage broker. Also, we will discuss how Better Bond works and how to make use of the calculator.
What is a mortgage broker?
A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses.
The broker acts as an intermediary between financial institutions that offers loans and those that seek to secure the loan.
The mortgage broker will work with both parties to get the individual or business approved for the loan.
They also collect and verify all of the necessary paperwork that the lender needs from the individual in order to complete the home purchase.
A mortgage broker typically works with many different lenders and can offer a variety of loan options to the borrower they work with.
The above services are what Better Bond provides.
Why Make Use Of Better Bonds
Shopping for a home loan can be one of the more arduous steps in buying a home. Better Bond can simplify this process by connecting homebuyers with appropriate loans.
Brokers can be especially helpful for first-time homebuyers who need extra support.
They have access to a wide variety of home loans from the leading lenders in South Africa. Also, they’ll have access to home loans that you might not be aware of.
You apply for a bond online and they’ll get you multiple quotes from SA’s major banks. And remember they do all the work of submitting to the various financial institutions.
In addition, they identify loans that meet your needs and then compare rates and terms, saving you a lot of time.
They always strive to get the best deals for their clients. The average interest rate reduction they
negotiate for their clients is 0,61%, which is a massive saving.
How much does it cost? It is a free service. The banks pay a once-off fee to Better Bond, so their
service to you is completely free
How Better Bond Works
The process to get your home loan is very simple and these are the steps that are involved
1 Better Bond will prep your application. They’ll get all your documents ready and help you complete the application form.
2 Submission of application by Better Bond. Your application will be sent to multiple banks including your own bank on your behalf.
3 Better Bond will negotiate for you. They go on the hunt in order to get the best deal for you.
4 Next, you’ll be given options to choose from. At this stage you are not left alone, Better Bond will walk you through the offers. However, you’ll have to choose the option that suits you.
5 The last step is you accept an offer. Better Bond will then notify the bank and then you become a home owner!
Better Bond Calculator
This is a useful tool found on their website to calculate your monthly repayments. Also, you can calculate the total amount repayable and the total bond and interest rate.
Knowing these figures is important as you’ll be able to see if you can afford the loan or not.
We strongly recommend making use of the Better Bond calculator before submitting and application.
Other calculators found on their website are the amortisation calculator, bond and transfer calculator, additional payment calculator and the deposit and savings calculator.
Illustrative Example:
Purchase Price: R2 500 000
Bond Amount: R2 500 000
Interest Rate: 7%
Repayment Term: 20 Years
Monthly Repayment: R19 382
Total Amount Repayable: R4 651 794
Total Bond and Transfer Cost: R171 519
Note: The above is only an illustrative example and helps you with budgeting. We recommend always getting hold of Better Bond to get an accurate quote and offer.
What is Pre-Approve?
It is a free service by Better Bond to check if you qualify for a home loan and how much you qualify for.
Benefits of pre-approval is that you’ll give you the estimated amount you may qualify for, so you are able to look at properties within your price range.
In addition, a pre‑approval indicates to the seller that you are a serious contender to buy their property.
Furthermore, you’ll be able to calculate the costs associated with buying a property and accurately work out your budget, so you know exactly what you can afford.
Also, a quick credit check will give you an indication of your credit score and whether you require any help improving it.
NOTE: You’ll be happy to know that 90% of clients who pre-approve with them usually get a bond.
How is application done?
Application is done online, giving you the convenience of being able to apply from anywhere and at any time.
Minimum requirements to qualify and apply for a bond;
- You and/or your spouse need to be permanently employed for a minimum of three (3) months
- A good credit record (and should show good management of your accounts)
- You need to make sure that your monthly expenses don’t exceed your monthly income
- A valid and active South African bank account reflecting your monthly salary (unless you are a foreigner)
- Your gross monthly household income needs to be R10 000 or more
Conclusion
Using a mortgage broker such as Better Bond will simplify the process of finding and vetting loans.
Also, Reduce some of the stress and legwork around shopping for home loan rates.
On the other side there could be disadvantages. For example, brokers can be biased, based on existing relationships with lenders.
In addition, they may not be aligned with your best interests and don’t guarantee you the most advantageous deal.
Make sure you always take a close look at the offers presented to you to make sure they are really good deals.
Better Bond Contact Details
For more information, you can contact them directly using the details below:
Website: www.betterbond.co.za
Telephone: 080 000 7111 (Home Loans) / 011 516 5500 (Head Office)
Email: info@betterlifegroup.co.za
Registered office address
Block 3, Pendoring Office Park,
299 Pendoring Road,
Blackheath, Johannesburg