How does the bond origination process work?

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IGrow Wealth Investments has been helping people invest in property and secure their financial future for over a decade. Time and again our sales and bond divisions receive questions from our investors on what the process is once the unit they wish to purchase has been reserved and they begin the home loan application process. We will answer some of these FAQs here:


  1. What does IGrow Wealth Homeloans do?

IGrow Wealth Homeloans is IGrow’s in-house bond originator, and are experts at obtaining multiple bonds. This means they process our investors’ home loan applications from all the major banks, with whom they have contracts and from whom they receive a fee.


  1. Does this service cost me anything?

No, this service is free of charge. There are no hidden costs as the fees earned by IGrow Wealth Homeloans are paid directly by the bank, not by you. (Remember, the bank and attorneys will charge you a fee for their services separately.)


  1. Can you guarantee me a low-interest rate?

There can never be any guarantees, however, IGrow Wealth Homeloans motivate your applications to the bank to obtain the lowest possible rate on your behalf. At the end of the day, the bank decides the rate at which they are prepared to lend you the money.


  1. So, why should I bother using IGrow Wealth Homeloans then?

Bond applications are admin-intensive and time-consuming. It can also be frustrating if you are not familiar with the process. The team at IGrow Wealth Homeloans provides professional financing advice, are thorough and efficient at processing multiple bonds.


  1. Do I have to follow up with the bank myself?

No, IGrow Wealth Homeloans will manage the process from start to finish on your behalf, and keep you informed of the progress of your application along the way.


  1. How long will it take for me to get a bond?

Once we have submitted the application to the bank you should receive feedback from us on their decision within two working days.


  1. Why are there two different documents from the bank?

The bank will send two documents through:

  • Approval of your application – this is based on your credit history and affordability
  • Final Grant – this states the amount the bank is willing to lend you and is awarded based on the property valuation.


  1. Why do I need to sign so many documents?

You are entering into a significant legal agreement with the bank for long a period of time. So, to protect the interests of all parties, all the relevant terms of the loan need to comply with legislation, be recorded and acknowledged by everyone involved.


  1. Will non-payment affect my credit rating?

It is very important to stay up to date with your monthly repayments as defaulting (not paying) on your instalment is likely to negatively impact your credit rating and your ability to obtain credit in the future. If you become aware of difficulties in repaying your loan it is important to contact the bank and alert them to this as soon as possible and renegotiate the terms of your loan.

Madelein Kottnitz

Madelein Kottnitz

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