First time investors often sign on to a loan to purchase a property, without realising they are hampering their future investment opportunities.
Later on, they realise they have made fast equity and want to withdraw some for their next investment, but find they can’t because their mortgage broker has signed them onto a deal which doesn’t allow them to refinance for two years.
This can be because some lenders don’t pay broker commission unless there is a guaranteed period in which the borrower can’t jump ship for a better deal.
It’s understandable as mortgage brokers work hard for their commission and they need to earn a living. However, this doesn’t mean you don’t have better options as a borrower.
Not your average broker
Zinger Finance does things differently. The company was set up by top property investor Nathan Birch, with the purpose of looking at finance from an investor’s side.
Zinger is all about helping clients get the best finance available to them, which will also be agile enough to allow them to withdraw equity quickly and keep building their portfolios.
One of the main ways Zinger does this is by viewing finance settlement as an early part of a borrower’s journey, rather than the end point.
Once settlement has occurred, Zinger keeps checking in on their client, making sure everything is going well, plus keeping them informed of what is happening in the market and what opportunities are available to them.
One week in
Zinger makes a courtesy call to the client to make sure they have all their basic requirements ticked off. They’re ready to settle, but have they sorted out their electricity, water and other things? Have they got the right date for their repayments to start and enough money in the right account to cover it?
At this point, Zinger reminds the customer that help and support is there if they need it.
The client will have been given a discharge authority form so that they can choose whether or not to give Zinger permission to monitor their property’s value.
After three months
Provided they have the client’s permission, Zinger will keep them in the know on what the local property market is doing and whether they may have already accrued equity they could use by refinancing.
At this stage Zinger asks how the client is finding everything, how their loan arrangement is working for them, whether they are happy with their lender and the interest rate they are paying and whether they were already considering their next investment. If Zinger’s market research shows potential capital growth, they will offer the client a new valuation and then help them get started with the next investment.
Accessing fast equity
Most major banks will only value a property at its purchase price and some will not be willing to re-value within three months because that time period is still regarded as current.
This can cause a problem for serious investors because if they can’t access their equity as soon as an opportunity arises, they can miss out on a deal and lose thousands of dollars in immediate further growth, plus valuable time in the market.
Zinger knows how to structure finance to avoid scenarios like that. One example would be to organise the first loan through a second tier lender and then refinance to a major lender three months later. That major lender then performs a fresh valuation.
Knowing the banks
Zinger has relationships with many lenders and knows which ones will be most beneficial for the holistic goals of their investor client.
They know which ones accept JobKeeper payments as revenue and which ones don’t. They know which banks face such long delays due to backlogs on loan applications that there’s no point applying with them because the deal can’t be done on time. They know business development managers at various lenders, who regard them as a good company to deal with.
If you need help structuring your finance or need more information on how it all works and what might be the best options for you, reach out to Zinger Finance and speak to one of their strategists.
