Shopping for a house can be a soul-searing affair - and as most homeowners will attest, getting a home loan approved can be the most painful part of the process.
Up until now, consumers have had little choice but to rely on old-fashioned legwork to shop around for the product that most suits their needs, and their budgets.
Enter MortgageSA.com, an Internet company specialising in the online origination of mortgages. Established in 1998, MortgageSA has grown steadily in the past three years, expanding the reach of its Cape Town head office both through its network of regional offices, and its call centre and Web site.
Saul Geffen, MortgageSA MD, explains the business model.
"MortgageSA basically services three clients - consumers, banks, and estate agents. On the consumer side, our home loan consultants would collect relevant employment and credit information, and then deal with the rest of the process on the consumer`s behalf. It means that clients will each have only one consultant, who`ll add value in terms of legal advice, various cost calculations and other input."
"There is no cost to the consumer, and no obligation to accept the home loan once their queries have been returned," he adds.
The company developed a skills-set, loan processing capability and a technology competency, which has been strongly supported by four major banks. The solution has since evolved to allow for home loan approval within 24 hours, in principle, although three days is the longest a client would have to wait for feedback. Geffen hints at further developments with Standard Bank and FNB that under the right circumstances will soon allow for real-time approval - a far cry, he says, from the US benchmark of two weeks.
Geffen believes the company`s upgraded pre-qualifying analysis tool, which calculates risk-based pricing based on each individual`s profile, makes for a better tailored end product, and reduces cost to the consumer as well.
Since it began operations, MortgageSA has processed over R3 billion in loans and employs over 100 people nationally. It services over 400 realtor offices and over 4 000 estate agents.
Future plans include a media campaign to be rolled out next year, as well as designs to bring in at least one major insurer, and develop other partners over time. As Geffen notes, "Consumers are wising up to their right to seek out and evaluate all the mortgage options, giving them the negotiating power they need to secure the best deal."
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