The Benefits of a Mortgage Broker

Successful entrepreneurs don’t need to know everything about everything.   Instead, they surround themselves with experts in each field. Sometimes called a mastermind, or team; it is this group of experts that provide the technical knowledge to realise the vision created by the entrepreneur. 

We may not be entrepreneurs, but when it comes to property investing we understand the need for experts such as solicitors and accountants to advise on tax matters, conveyancing, and asset protection structures. And ideally we want these experts to be investors too – this builds confidence that they are motivated to be experts in their field. We also want a team of experts to care for our investment after purchase, such as quality property managers and reliable tradesman. Some investors hire a buyer’s agent to provide expertise and time saving in the property selection process. And of course, most investors realise they need a loan. After all, without reasonable leverage property is a very ordinary investment, with fairly low returns. 

So, is your ‘regular’ bank, lender or mortgage broker an expert in investment property finance?   Can they offer or review a huge range of products to find a good fit with your strategy? Are they an investor too? Do they understand your needs are quite different to home buyers?   Do they know how to gain maximum leverage using a finance strategy across many lenders?

What most people don’t realise is that each lender has its own unique credit criteria and assessment process. The table below shows just a few critical differences between just three lenders: 

For the average home buyer these differences are largely irrelevant unless they are pushing their capacity to the max or have an unusual situation. On the other hand, most investors are constantly pushing the boundaries simply because the more you can borrow, the more you can invest; and these differences can result in very different borrowing limits. 

This is why a skilled mortgage broker will add value to your investment team! 

One of our most precious commodities is time. It takes time to become an expert in any area, yet property investing requires expertise in several.

An experienced mortgage broker will add value by:

• Effectively doing the leg work for you to choose which lenders you qualify with  – they are up to date with lenders criteria & assessment process, credit “tricks” and structuring requirements.
• Quickly comparing products – many brokers have specialist software that enables them to directly compare several products, as well as access to detailed product information. Experience with a wide range of investors means they can assist you with selecting the best product/s for your investment strategy. 
• Managing the loan process through to settlement – making sure all the right documentation is submitted, escalating processes when required, or simply keeping you updated on progress.
• Streamlining service for future lending – no more starting from scratch for each loan or new lender.   Your strategic finance expert will learn about your situation & your goals and apply this to all your future lending. 

But perhaps most importantly… a mortgage broker experienced in strategic investment property finance can help to accelerate your wealth creation!  Leverage is a key element in wealth creation - the more capital you have working profitably for you, the wealthier you will become. 

In summary, finding the right loan is much more than finding the lowest interest rate. An experienced mortgage broker will add value to your property investing in many ways.

Fiona Herbert is an accredited mortgage consultant and an investor herself, who works almost exclusively on strategic finance solutions. You can contact Fiona and other brokers around Australia through Finding Finance.  For more information see http://findingfinance.com.au/

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