04
APPLY FOR A MORTGAGE BOND
THE PROCESS
The estate agent will help the Buyer to find a mortgage originator who will approach the banks for a loan.
The mortgage originator will assist the Buyer with obtaining the best interest rate and terms.
The bank will assess the Buyer’s affordability and his credit record as well as send a valuer to the house for assessment.
The bank may insist on certain conditions being met (ie the cancellation of any other bond which the buyer may currently have on another property, building plans or a structural report).
The Buyer will then accept the quote from his bank of preference.
ROLE PLAYERS
MORTGAGE
ORIGINATOR
BUYER
BANK
THE
BUYER
POTENTIAL DELAYS
The Buyer may have to settle outstanding credit card or other debt first. The Bank may not find enough value in the property or approve the Buyer’s credibility or affordability. There may be a delay on the bank’s side to assess the property.