You’ve decided to buy your first property or you’ve made the decision to buy another investment property.
You look at the never-ending range of home loan lenders in the market on Canstar and you let out a deep sigh.
Why cant finding the right home loan be easier?
How do you make an educated decision with so many products on the market?
How do you find the lender that’s right for you and what happens if you make the wrong decision?
We all know that finding and securing a home loan is hard work.
Does that mean you should cross your fingers and hope the right deal lands in your lap? Absolutely not!
Instead, why not take a step back and review what you’ve done so far?
Do you have a mortgage broker, have they got your best interests at heart?
Are they helping you to achieve your goals of financial freedom faster?
If not, this article will help you:
- Determine how much an average mortgage broker is costing you
- Understand the characteristics of a great mortgage broker
- Understand the benefits of finding a great mortgage broker
- Identify a list of questions to to help you decide if a mortgage broker is right for you
- Understand where to find a great mortgage broker
1. Lets start by determining how much an average mortgage broker is costing you
You might be aiming to buy 5 properties over the next ten years.
You buy your first, second and even squeeze in a third property and then find out your bank won’t go near you???
You may have bought the wrong type of properties and hit a serviceability limit, but it could also be the result of the way your mortgage broker has structured your loans and the advice they have given you along the way.
An example of this happening was in 2013 when my bank manager told me that I would need to sell one my investment properties to buy my next property. The problem was I listened to her and let a property I’d found for $125,000 below market value slip through my fingers. Two weeks later I meet a broker who got me the finance. Unfortunately by this stage it was too late and i’d lost the deal.
As you can see from my experience the key to buying well is being in a position to having access to finance whenever you may need it.
What’s your current mortgage broker costing you?
What’s their first response when you want to borrow more money?
Do they question they way each purchase impacts the next or are they looking at the current deal?
2. What are the characteristics of a great mortgage broker?
Does your mortgage broker own property, if so how many?
Is their investment strategy in line with yours?
Does your mortgage broker go the extra mile, do they understand where you’re going? Are they actively helping you to get there?
A great mortgage broker should be efficient, punctuate and available when you need them. They should be wealthy and hungry for your business.
Above all they should work with you to achieve the best possible outcomes for you based on your current situation.
A great mortgage broker should never take no for an answer and always have a strategy to help buy your next investment.
3. What are the benefits of taking the time to find the right mortgage broker?
A great broker will:
- Save you time
- Save you money
- Reduce the headaches associated with finding a loan
- Help you move forward faster
- Fight for your best interests
- Help you design a short and longer term strategy
4. What questions should you ask your mortgage broker before you decide if they’re right for you?
How can you save time by getting rid of the average brokers before they have a chance to cost you time and money?
Try asking them:
- How many properties do they own?
- How many lenders do they work with?
- How many loans have they written in the last 3, 6 and 12 months?
- How many first homebuyer and investor loans did they write in the last 12 months?
- What discounts can they offer you on current rates?
- Do they question the entity your buying in? Is it a trust or your own name?
- How long have they been in the industry?
- How many loans did they write between 2011 and 2012?
All of these questions are important in finding the right broker for you.
A tell tail sign of a great mortgage broker is one that takes the time to understand your current challenges and finds an appropriate solution to your long term plan.
Warning!! Look out for the mortgage broker that tries to jam the first product they can find down your throat.
5. Where can you find a great mortgage broker?
A great place to start is referrals from:
- Other investors
- Family and friends
- Builders and developers
- Accountants, solicitors or financial planners
So what’s next?
Ready to find the right mortgage broker for you?
Follow these steps:
- Decide if you still want to work with your mortgage broker and if not be prepared to walk away
- Understand the characteristics of a great mortgage broker and do not accept anything less
- Understand the benefits of a great mortgage broker and know they will pay for themselves self again and again
- Identify a list of questions to ask a new mortgage broker to help you decide if they’re the right broker for you
- Understand where to find a great mortgage broker and don’t be afraid to chop and change till you get it right
Buying your own home is one of the biggest financial decisions you’ll ever make.
So its worth considering your options, shopping around for the best rate and finding the right home loan for you.
To help you navigate the home loan market, Pumped on Property have created a home loan checklist to help you save time and money.
This investor checklist aims to provide you with a tool to compare various home loan providers.
We hope this home loan checklist helps you on your way to securing the right home loan.