Origination Real Estate Presentation May 2017

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

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.

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

Approval Rates contd:

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

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

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

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

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

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

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