When it comes to home loans, there is a common misconception that your own bank is going to give you the best deal.
While it would makes sense for the major banks to offer their own clients better services and products, in reality this rarely occurs for new home loan applications.
Each bank has its own lending criteria and different methods of calculating risk.
Although you may already have an existing profile with your bank, that bank might be reserving their best deals for a particular type of client, or for properties that meet a particular type of profile.
There are a wide range of factors that could affect the banks’ view of your application. Read More Here About: How the bank’s internal client rating can affect your home loan application
And while there is clear evidence that more 100% bonds are being granted, it is not always coming from the clients’ own banks.
The loan amounts ranged from over R1 million to just under R500 000, and the properties were located in different areas of South Africa, but each applicant still received a better deal from another bank.
These are just some examples of how one bank, Standard Bank, was able to assess the full property investment (including the client profile and the property profile) and offer a better deal to these clients, than there own bank was able to.
If you can’t be sure where you’re going to get the best deal, it makes more sense to approach each of the major banks and compare their offers.
This can be a lengthly process, which could mean having to complete at least 4 different application forms and at least 4 separate visits to each bank.
Make use of a bond originator instead, where you’ll be able to speak to one consultant about your unique application and still get access to each of the major banks.