[4/4] Have you got a good mortgage broker?

Acting as an intermediary between you and the bank, it’s important to find a good mortgage broker when you start investing in property. Any old mortgage broker will simply not do. You need someone really exceptional to do the job.

Why do you need an exceptional mortgage broker?
Finding the best mortgage broker will help ensure that you can buy more than just one or two properties. It’s not actually enough to get any old mortgage broker. In fact, I’d say that 9/10 of them aren’t that great. A good mortgage broker will make all of the difference as you grow your portfolio because they’ll be able to put you with the right bank at the right time.
It might not make a huge difference for your first few properties, but once you get beyond the first few, choosing the right bank might mean the difference between getting approved and rejected for a loan.
In reality you may have the cash flow to afford another property, but on paper the banks will all assess you differently. This might result in you hitting a “servicing wall” sooner with some banks than others.
Here are some of the differing factors for assessing your borrowing capacity:

Whether or not they include the rent of the new investment property

The amount of loading they’ll add to your interest rate (1-2%)

Whether they’ll calculate it based on interest only or principal & interest

The percentage of the rent included (75% or more)

Whether you can include your tax return as income or not

These differing factors and the banks who all have different rules around your borrowing capacity, can be huge when it comes to getting approved for future loans. A good mortgage broker knows all of these rules and how they apply at different banks and at what point in your strategy you should go with which bank.

You’ll hit the servicing wall at different points with each bank. Even though you have equity and cash flow to service your new property, once the banks stop lending you money, you’re stuck and can’t get that extra property. A good mortgage broker will be able to navigate around these rules so that your portfolio can keep moving forward.

A good mortgage broker has the knowledge on strategy and the rules for different banks to make the best recommendation possible for you. The average person does not have the knowledge or access to do this.

Do you need help finding an exceptional mortgage broker? Get in touch and our team will be happy to help you find the right broker for you.


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Legal Disclaimer: This information ('the information') is presented for illustrative and educational purposes only. It is not presented nor should it be treated as real estate advice, legal advice, investment advice, or tax advice. All investments involve risk and potential loss of money. If you require advice in any of these fields you should contact a suitably qualified professional to assist and advise you. Your personal individual financial circumstances must be taken into account before you make any investment decision. We urge you to do this in conjunction with a suitably qualified professional. Daimien Patterson, IntegrityX Enterprises Pty Ltd, and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers do not guarantee your past, present or future investment results whether based on this information or otherwise. Daimien Patterson, IntegrityX Enterprises Pty Ltd and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers disclaim all liability for your purchase decisions. You should do your own independent due diligence and seek the advice of qualified advisors before making any investment decision.