Mortgage brokers can play a huge role in helping property investors reach their goals, or on the flipside…fall short. Taking out the wrong loan product can be costly in the short term, and that pain will be compounded over time, especially if you end up stuck in a bad financial situation as a result.
If you want to build a property portfolio that will help you reach your goals and live life on your own terms, you need to make sure your mortgage broker is on the same page as you.
Not only that but are they professional enough? Do they have a proven track record of success with long-term clients? Do they know the ins and outs of property investment?
Holistically speaking
A mortgage broker may reveal themselves as average or inexperienced if they don’t take the time to engage with your goals and consider where you want to get to and in what time frame.
They may get you a decent deal for one property and secure their commission, but what happens if that same deal prevents you from expanding further at a later date?
Sure, they need to focus on getting you the best outcome now, but they should also think ahead by getting you a loan that will allow you to purchase your next one, two or even 10 properties.
Who is on their books?
Not all brokers have access to all the deals that are out there. They may not be accredited to deal with the best lenders, which means you are not able to access your ideal loan product.
In the worst cases, they may be steering you towards the lender that pays them the best loan commission.
The flow-on effect is that you end up paying a higher interest rate or have a lack of flexibility in the loan product that you end up having to settle for.
A higher interest rate can cost you hundreds of thousands of dollars over the life of a mortgage and damage your borrowing power in the short term.
Borrowing power
Speaking of borrowing power…it’s crucial in the current climate. Interest rate rises have knocked 30% or more off most borrowers’ capacities in just over a year, at a time when investment properties in many places are at a flat price point and offering high rental yields.
A savvy investor has the opportunity to make acquisitions now that will prove beneficial in the long run, so it’s imperative your borrowing power is at its best. You don’t want to be tripped up by a poor loan structure and miss out on great opportunities.
Compound effect
The wrong broker may also mean you end up paying higher fees for your loan, miss out on a cashback offer or other refinancing benefit, find yourself unable to access equity as a time that suits you and even leave you in a position where your poor finance structure means you can’t optimise your tax. These losses are compounded because the longer you spend in the wrong structure, the more you pay and the more growth or return-providing assets you miss out on.
Start with the specialists
Zinger Finance was set up especially to cater to ambitious property investors eyeing off large portfolios and can help you craft a long-term strategy with a step-by-step action plan.
We know which lenders offer the deals and features that will help you grow your portfolio and can help with advice on how to reduce debt, free up equity in short periods of time and leverage your assets. We also provide ongoing care in the form of regular portfolio reviews to make smart adjustments when interest rates, laws, policies and regulations change.
And we can help you with strategies to consolidate your portfolio and pay down your debt in the future.
