2. Origination Real Estate Presentation
May 2017

3. Bond Gallery Value Proposition
Consumer affordability is challenged by interest rate increases and slowing economic growth, coupled with higher inflation. These challenges increase the value that an originator adds.
6 Reason why you should use Bond Gallery
Seven out of ten applications are approved through Bond Gallery
Your application is submitted to up to nine banks at the same time, getting you the best deal.
We know the banks’ processes and credit criteria like the backs of our hands
We have excellent relationships with banks at all levels.
We do all the paperwork for you
You get this CHOICE, CONVENIENCE and EXPERTISE for free

4. Bond Gallery’s advantage
Average Bank approval rate = 56%
Bond Gallery approval rate = 73%
Bond Gallery’s multiple bank submission gives you a 33% better chance of securing a home loan than by approaching your own bank directly.

5. Approval Rates
29% of bond applications that are declined by one bank are approved by another.

6. Approval Rates contd:

7. Banks pricing trends Current prime lending rate is 10.50%
Banks are offering less attractive rates as a result of the higher cost of funding

8. Bank profitability - focus:
NCA compliance
Fraud prevention
Customer service delivery
Bad Debt limitation
Acquiring market share
Growing their retail base
Profitability
Cost of funding
Quality of applications
Maximizing intake to instruct ratio
Retention of own customers’ business
Processing costs efficiencies
Reducing NTU’s

9. Key Origination Indicators:
47% of all applications currently received are for 100% loan-to-value bonds
89% of all home loan applicants are employed, only 11% are self-employed
93% of all home loan applicants are purchasing property for their own occupation with only 7% purchasing for investment or holiday home purposes
First-Time buyers represent 46% of application volumes
Value of granted home loans is 8.3% lower year-on-year

10. Deposits:
28% of bank approvals are currently subject to a lower offer – there is therefore an increasing need for home buyers to have a deposit available
The Approval & conversion rate on a 100% LTV bond is significantly lower than a 90% or lower LTV bond
A sale with a 100% bond condition has a low chance of becoming a confirmed sale
You stand a significantly better chance of a successful sale if your buyer puts down a deposit
Providing a deposit helps to secure a better interest rate for the buyer

11. Our service commitment:
Partnering with real estate to seal the deal:
Ensuring agents have access at all times to skilled consultant resources
Ensuring we deliver timeous, accurate and relevant feedback to agents and home buyers
Ensuring our agents are equipped with the tools to ‘sell’ the Bond Gallery value proposition
Ensuring that we have a dedicated deal escalation and arbitration process, staffed with skilled senior management
Ensuring new customers are contacted on the same day as the lead is received

12. Our service commitment:
Partnering with real estate for:
CHOICE, CONVENIENCE, EXPERTISE

13. Thank You