A bond originator can be very valuable to those looking to purchase their dream home, or invest in property, with a home loan. Their objective is to get you the best home loan deal by applying to multiple banks on your behalf, so you can compare which ones offer the best rates, terms and loan amount. Bond originators are paid a commission by the bank, so their service is free.

Your credit score indicates to your bank whether your past debt repayment behaviour will make you a good risk or not. Through various calculations based on your transactional records, the credit bureau will provide your bank with a three digit number ranging between 0 and 999. Naturally, the higher the better, and a high credit score rating is one of the most valuable personal finance assets you can have.

Generally speaking, a score of 600+ will give you a fair chance of home loan approval. Although this may vary according to which bank you use. Each bank uses both the Credit Bureau score and their own internal risk assessment criteria which looks at a number of factors specific to a particular home loan application, such as the loan size compared to the property value (zero deposit is considered higher risk). If you are classified as very high risk, the chances are you won’t be successful in your home loan application as the banks will question your ability to pay them back. A good to excellent credit score will have the opposite effect, possibly opening the way for you to negotiate preferential terms and interest rates.

A prequalification gives you an accurate idea of what you can realistically afford, along with your credit score. This means you can shop for a home within the right price range, improving your chances of successfully qualifying for a home loan

The first debit order will go off a month after bond registration (on the debit order date you’ve selected).

The key things to compare are the interest rate, loan term, and value of the loan compared to the value of the property.