What are the best banks for home loans in South Africa?

Article summary:

  • When it comes to finding the best banks for home loans in South Africa, a bond originator will tell you more than any customer satisfaction survey.
  • An independent bond originator will compare home loans for you, giving you access to far more products than if you went direct.
  • Because they are intimately acquainted with the industry, bond originators know which are the best banks for pre-approved home loans too.

The latest South African Consumer Satisfaction Index (SAcsi) results show that Capitec customers are the most satisfied, and that the bank’s clients, along with those of FNB, are the most loyal in the country.

The SAcsi 2016 satisfaction scores for South African banks were:

  • Capitec – 83.1
  • FNB – 81.3
  • Nedbank – 77.0
  • Absa – 74.2
  • Standard Bank – 71.9

But ratings and scores are one thing. When it comes to applying for home financing, size of loan and interest rate are quite another. This is why, despite evidence that some banks offer better customer service than others, going direct for your home loan is never your best bet.

There are things a bond originator can tell you that no index ever will. The plain and simple truth is that you can’t know if you’ve got the best deal from a bank, if you’ve only approached one bank. You need to access choice and we can assist you with that simply.

Originators and affiliates are successful in securing home loan financing for one in every three applications that are initially turned down by a bank. In short, you have a far better chance of obtaining the thumbs up on your home loan if you go through a bond originator.

Here are four more reasons to forget about knocking on your bank manager’s door:

1. Someone who compares home loans for you

An independent bond originator will look for the best home loan for you. O-YES will submit your application to up to eight different banks. You’ll get unbiased advice and will be able to choose from a range of banks and subsequent products, rather than being restricted to the single range of the bank you go to.

2. Someone who knows the industry

Home loan criteria have tightened massively over the last few years, and these days are designed to ensure borrowers can prove affordability, even in the event of a rate hike. Those extra checks have understandably increased application times. That’s why it’s so important to stay in the loop – and to have a bond originator on your side who understands it all. Bond originators deal with banks on a day-to-day basis, so they’ll know what the application process is like for each one and can tell you which bank can process your application with minimal delays.

3. Someone who knows the best banks for home loans in South Africa

Bond originators know the background criteria that the various banks in South Africa have and can bring this experience to bear when advising you and processing your application. Our strong bank relationships allow us to chase things in a way you just can’t do yourself – and that can be invaluable should things get held up.

4. Someone to help you with obtaining a pre-approved home loan

Getting pre-qualified for a home loan means that your income, expenditure and credit record have been checked in advance so that you can make an offer on a property with the confidence that it is within your price range, and that your credit record is clean. A bond originator will assist you every step of the way through the pre-qualification process.

Home loans are a lot more complicated than they first appear. Knowing what rate, term, bank, features and insurance to get are all time-consuming and complex matters. A bond originator takes your whole circumstances into account to recommend a suitable product, and it’s that thorough, professional look at your finances and our knowing which is the right bank for you that makes this advice so valuable to you.