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?
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.
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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