Negotiation is key as lenders compete for home loan applicants

Finance, Buyers, Affordability



Despite the boom in property market activity following 2020’s interest rate cuts, property finance experts are reporting no reduction in lenders’ appetites for granting home loans. According to Leonard Kondowe, National Admin Hub Manager for Rawson Finance, successful home loan numbers at Rawson are now 60% higher than the same time last year and show no signs of slowing down any time soon.

“So far this year, Rawson Finance has helped so many property buyers get their bonds approved1-Aug-05-2021-06-02-25-28-PM compared to the same period last year,” says Kondowe. “We have recorded an average of 75% success rate for the period under review, which is high by industry standards and indicates a very positive lending attitude.”

Of Rawson Finance’s successful applications, around 66% were approved on first submission, and 34% after further motivation by the bond originator. This, Kondowe says, shows that lenders are also open to discussion, particularly with applicants willing to go the extra mile to improve their risk profile and application strength.

As for interest rates, Kondowe says offers have varied from a record low of Prime minus 1.65% to an eyebrow-raising high of Prime plus 2% (which was declined by the applicant after comparing with other offers obtained from other institutions). Purchases with a deposit typically receive the best interest rates, but 100% – and even 105% – bonds are still available to strong candidates in certain market segments.

“We’re definitely noticing that, although the banks are fighting overqualified applicants, they’re not necessarily putting their best offer on the table from the very beginning,” says Kondowe. “It’s almost as if they are waiting to see what the competition offers before bringing out their A-game.”

This has proved particularly true for applicants approaching their primary banks, expecting to leverage their pre-existing relationship to secure a good deal on a home loan.

“Very often we’re able to negotiate a far better deal from an applicant’s primary bank if we can leverage alternative offers from other financial institutions,” says Kondowe. “Banks don’t want to lose loyal customers – they’re usually willing to fight to keep that business in-house.”

Banks aren’t just fighting to retain their own customers, however. Kondowe says they’re also doing their best to entice customers away from the competition. One popular technique is to offer better deals on home loans to applicants willing to move their primary bank accounts as well. 

This, and other negotiation tactics, can muddy the waters for bond applicants, making it more difficult and more time-consuming to identify and secure the best possible offer.

“Obtaining different quotes and negotiating best possible deals based on offers on the table really does pay off at the moment,” says Kondowe, “but that can be a complicated and frustrating process for a private individual. It’s much easier for bond originators to have the right conversations with the right people, using our contacts and experience to get best offers on the table as fast as possible.”

As a completely free service, bond applicants have nothing to lose by using a bond originator, and potentially everything to gain. Originators like Rawson Finance also facilitate far more than just bond applications. They also do prequalification and provide advisory services to those hoping to improve their financial profile in preparation for a future bond application.

“Prequalification is a very useful way to pick up any potential issues like adverse credit listings so that we can address those in advance of your bond application,” says Kondowe. “We can also highlight areas that have room for improvement, like reducing debt or unnecessary monthly expenses, and help applicants create the strongest possible financial profile.”

Prequalification can also streamline the bond application process by removing the need for new paperwork – great news when speed is of the essence.

“As long as you submit your application within three months of prequalification, you don’t need to fill out any new forms for us at Rawson as long as no changes applicable to details previously declared by applicants ,” says Kondowe. “Instead, we submit on your behalf using the documents provided for prequalification. No fuss, no hassle. Just quick and effective results, negotiated down to the best possible offers.”

Need a home loan? Rawson Finance will help you get offers from the top lenders, negotiate the best rates and handle all the paperwork - all at no cost to you. Get in touch with us now for more information on 021 658 7100 or email


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