So the real questions are: what does it cost to apply for a home loan.
Whether you use a mortgage consultant, or as we call it a bond originator, or apply directly from a bank consultant at a branch, or whether you apply online to a bank - the feeling is that surely there must be different charges related to each method.s
At one stage a few years back, this was true, however, bond originators charge the client nothing as they are paid by the bank for a successfully transferred and registered home loan.
The same way a bank pays there internal consultants a salary - all these costs are part of the cost to company for the bank when they prepare their product offering and has no financial implication on you the client.
The mortgage originators charge nothing as they are paid by the banks, exactly the same way a bank pays for the salary of an internal bank consultant, so the bank costing are automatic in all of their products whether it is home loans, personal loans, car finance, opening an account etc.
In fact using an external source actually decreases the cost for the banks as they (the originators) carry their own overheads monthly, whereas internal staff are a larger cost to company for the banks.
So when you apply for a home loan what do you get charged for:
1. Initiation fee - ranges per bank but approx R 5,000.00 and more for juristic person
2. Monthly service fees ranging up to R 160.00 a month approximately depending on your deal
3. Cash deposit service fees if you deposit cash
4. Early termination fees if you cancel your home loan early
5. Then you have transfer and registration fees on your property and mortgage that could range up to 7% of the purchase price in total.
6. there may be an insurance fee for householders and home owners insurance
So with all these costs you can always ask the experts for advice.
But be aware that these costs are above your monthly mortgage cost.