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Buying a house can often be a costly and stressful experience. It can also be confusing and advice from a bond originator can be just the helping hand a buyer needs.
The originator is responsible for sourcing the best possible home loan agreement, finding the best interest rate (based on the client's credit worthiness), ensuring the application is complete and that it includes all supporting documentation, and ensuring submission to the bank of choice, for and on behalf of the prospective buyer.
Working in this industry requires the originator to understand the dynamics of the home loan industry and how to sell home loans.
"The mainstream entry into bond origination is a progression from being in the home loans department within one of the major banks. Alternatively you can start off in the industry as a sales assistant and progress to the position of property finance consultant. A person would want to enter into the origination industry because they recognise the opportunities within a young and vibrant industry," said Bradd Bendall, a bond originator at MortgageSA.
Origination is a demanding profession as it involves effectively servicing two customers.
"The home buyer is keen to have confirmation that his or her purchase is secure. This means that the bond or mortgage has to be approved. The real estate agent then puts immense pressure on the originator to ensure that the bond, or mortgage is approved. This ensures that the sale of the property is secured," said Bendall.
The role of originators is to advise the client on issues related to the completion and readiness of the home loan application. "In some cases, we also advise on various insurance products such as home owners' cover and mortgage protection," says Bendall.
The work involves long hours at the office. "A typical day for a property finance consultant may start at 8am where you are required to visit various real estate offices to collect Deed Of Sale application forms. These are then returned to the office for processing. Sometimes, I have a full day of 10 working hours due to the demands of the job. However, in many cases, consultants work into the night concluding applications at times that are convenient for the client," said Bendall.
The industry is eight years old and therefore has huge growth potential. However, the shifting demographics and legislation in South Africa make this work a challenge. "One has to ensure that as an industry we are well prepared for change," he said.
The starting salary for an entrant in this industry varies but most companies offer R8000 a month plus commission.