Touted as a new concept in SA, BondNet, an Internet-based mortgage bond origination company, went live yesterday.
Based on the principle of banks bidding for the mortgage bond business of homebuyers and homeowners, the initiative has four participating financial institutions - FNB Properties (a division of Firstrand Bank), Saambou Property Finance, Imperial Bank and FBC Fidelity Bank.
Consumers can call for bids for new mortgage bonds, second bonds, as well as switch their existing mortgage bonds to an institution that may offer better terms or interest rates. The BondNet Web site is published as the property section of Net Assets, the free to air personal finance Web site.
Potential borrowers can log in to BondNet`s Web site (http://www.bondnet.co.za/
) and fill in the generic application form, which is then forwarded to the participating banks. Each of these banks then bid for the applicant`s business and send back their bids to BondNet, which in turn e-mails the respective bids to the applicant.
Greg Dunsford-White, BondNet`s marketing director, comments: "In terms of bond origination in SA, BondNet is a new concept. It is independent and totally consumer-focused, which means that, with very little time or effort on their part, consumers will be able to put their business in front of four banks at once in order to source the best bids.
"BondNet also simplifies the process, as the consumer fills in one form and receives the bids from the bank in a standard format, so that they can easily compare the different bids and make an informed choice."
"Disclosure of commissions is now mandatory in countries like the US and Australia," says Howard van der Merwe, executive director for BondNet. "Being consumer-focused BondNet adheres strongly to the principle of transparency and therefore is happy to disclose the fact that it earns 0.35% commission from its participating institutions. BondNet`s service is free to consumers."
The site is hosted by I-Net Bridge, a partner in BondNet, and features a regularly updated news section focusing on property and related news stories, an advice section and a number of interest rate calculators.
BondNet is a joint venture between I-Net Bridge, the Casey Group, Primevest, P&P Promotions and Greg Dunsford-White.
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