Absa announced today that it would be bidding for Home Loans through BondNet, the country`s first online mortgage bond originator. BondNet provides a fast, simple method for consumers to put their home loan requirements to the country`s leading financial institutions, which in turn, compete directly for their business via BondNet`s bidding model.
Richard Gahagan, General Manager Home Loans at Absa, says: "We are delighted to add BondNet to our existing channels. Absa is totally committed to giving consumers the best advice and service on their home loans. It is clear that today`s consumers are actively looking for greater convenience and flexibility when it comes to their home loans. Together with BondNet we are able to make this a reality for them."
The appearance of BondNet (http://www.bondnet.co.za) in the South African financial services market 18 months ago provided South African consumers with a highly convenient option when it comes to raising a mortgage bond. The company`s Web site provides a quick and simple means for potential borrowers to present their home loan requirements to a panel of the country`s leading mortgage institutions.
According to Tielman de Villiers, MD of BondNet, the bidding model used by BondNet clearly differentiates it from other bond origination companies. De Villiers adds: "The addition of the country`s leading mortgage lender to the BondNet panel of bidding banks can only benefit consumers. By making BondNet independent and consumer-focused we have been able to create a low-cost channel through which institutions can offer some real choices and loan terms. Consumer reaction has to date been extremely positive."
Gahagan comments: "At Absa we believe that an informed consumer is an empowered consumer and therefore we provide a lot of additional information for potential borrowers with our bids."
BondNet has been positioned as being completely independent and transparent. It discloses on the front page of its web site that the company receives a 0,40% commission on all registered bond transactions, which originate through the Web site.
Since its debut at the end of August 1999, BondNet has processed close on 1500 mortgage bond applications through its Web site, with a value exceeding R750 million.
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