Introduction to MultiNET Home Loans

MultiNET Home Loans, the only independent origination company in the market, was established in 2004 and is one of few bond originators with a business model that protects the pockets of buyers as well as the business interests of realtors.

History and workings of a bond originator

Bond originators entered the South African mortgage industry in 1999. In 2001, after only two years in operation, it was estimated that originators accounted for approximately 40% of total mortgages issued, with this figure growing to around 60% by 2007.

MultiNET Home Loans was established in 2004 and where many of the industry players had to close their doors due to the financial crises in 2008/9, MultiNET continued to deliver on its value of being a trusted business partner that provides a stable and transparent environment for all associated with the brand.

As a middleman between home buyers and financial institutions, bond originators have been able to change the way business relationships are conducted between homebuyers and lenders. Being at the coal face of the mortgage industry, originators provide an efficient service that results in cost-saving benefits across the entire mortgage market value chain.

What has been behind the success of MultiNET to Date    

Being the only independent origination company in the market, many of our real estate business partners recognised that to protect their businesses interest, they would need to support an organisation that is impartial and does not compete with them on the ground. As an independent operator, MultiNET is not inextricably associated with another business through common ownership, affiliation, sharing of employees, facilities, equipment, profits, and losses.

Apart from this, MultiNET focuses on the origination part of the value chain, which gives them the ability to share more of its profits with their employee’s as opposed to multiple shareholders looking for a large share of the pie.

Backed by an exceptional management team, MultiNET is focused equally on getting home loans approved and on win-win scenarios. The company has fostered a culture that provides a business partnership that ensure trust and financial security.

The Bond origination process

Bond originators act as intermediaries between property purchasers (consumers) and banks to acquire a mortgage bond. The mediation process begins once a consumer has signed an offer to purchase a property. The consumer can choose to approach a bank directly with a mortgage application, or they can use a bond originator, such as MultiNET.

An estate agent will often refer a customer to a bond originator and provide the originator with relevant information pertaining to the consumer’s financing needs. Bond originators also typically provide prequalification services based on assessing the consumer’s financial situation and credit history.

Who are the role players

At present there are only three Mortgage origination companies operating in the South African property market, they are MultiNET Home Loans, Ooba and Betterlife Group Limited. (The holding company for BetterBond and MortageMax) In addition there are also 500 to 600 individuals operating as bond brokers/aggregators under one of these mortgage origination companies mentioned above.

The faces behind MultiNET