"The first fact is that the loan criteria at the banks vary quite widely, and this applies not just to the conditions under which the loan is made but also to the interest rates charged.
"The second fact is that the banks, being dynamic and very much on the ball, are continually re-assessing their strategies and are likely to make changes to their loan parameters as and when they seem necessary."
While certain banks have become recognised front-runners in awarding mortgage bonds, says Van Alphen, others less prominent in this field may have loopholes and special conditions which in certain cases can make their deals more attractive.
In the circumstances, says Van Alphen, it is wise to consult those whose job it is to keep abreast of all the banks' loan criteria and conditions, i.e. the bond origination fraternity.
Liaising with bond originators, he says, is especially sensible if the aspiring applicant is inexperienced in finance matters or if he or she is in one of the 'difficult' loan categories, e.g. is approaching pension age, is self-employed, or is building his or her own home and not buying it as a complete package. In these cases a significantly lower percentage loan is usually awarded.
The good news, adds Van Alphen, is that not only are interest rates being held at low levels (the lowest in 40 years); 80% of applicants are today able to borrow at prime (8,5%) or even below prime.
"Now is, therefore, an excellent time to be buying a home because, although some people still find this difficult to accept, bonds are at historically low levels and are, in fact, bargains. Furthermore, it has to be said that if the applicant initially experiences difficulties, he or she should not despair - with the right consultants these can usually be overcome in time."
