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BLOG: Don’t go lending alone

13 SEP 2018 • By Phillip Tarrant • 2 min read • Finance

If you’re looking to invest in property in this period ahead, there’s a lot of policy dictating the way in which lenders are shelling money through to investors right now. A big help in dealing with all of this is to rely on a good mortgage broker. Here’s why, shares editor Phil Tarrant.

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Depending on how lenders are performing against the requirements set by APRA, often they’ll do a bit of run and say, “Okay, we got a bit of fat here. We can pump in a whole bit of mortgage for a period of time.” So, what will happen is, mortgage brokers will be notified by these lenders that they have preferential pricing or some sort of specific policy discounting around a particular product.

You’re not going to know about these things coming on. So, a good broker should be presenting new solutions to you for preferential pricing with the lenders that they work with. And be connective with that, and it might not be with one of the major banks. It might be with a second-tier bank or a non-bank.

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Keep an open mind to those type of products because we’ve got some good second-tier lenders, I think we call them, in our portfolio. And second tier doesn’t sound very nice, but, essentially, it's banks who aren't the major four banks or five banks, including Macquarie. I'm talking like your Suncorps or your INGs.

There's some really good lenders out there, so keep open to that.

 
 

Just in general, brokers are really good to have on board, my buyer’s agent Steve Waters calls them underrated, how they’re across hundreds of different lenders, but the borrowers, the investors, we don’t have that expertise. It’s impossible to expect us to know every single policy and product out there.

They’re a central part of the team because, as Steve tells me, property investment’s a game of finance, and you got to get your finance right. And that’s really good counsel.

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RELATED TERMS

Broker
A broker is a real estate agent that is licensed and has completed additional training, working independently, and can hire other agents to start their brokerage firm.
Mortgage
Mortgages are loans that are used to buy homes and other real estate where the property itself serves as collateral for the loan.
Phillip Tarrant

Phillip Tarrant

AUTHOR

Phillip Tarrant is one of Australia’s leading property commentators, with more than a decade at the forefront of conversations shaping the nation’s property investment market.

As the long-time host of the Smart Property Investment Show and a regular commentator across property, finance and business, Phillip has interviewed thousands of investors, economists, advisers, brokers, agents and industry leaders, giving him a unique perspective on the trends, policies and market forces influencing Australian property.

Beyond property commentary in the media, Phillip is an active property investor himself, with first-hand experience building and managing a diversified property portfolio across multiple markets and cycles. His insights combines this practical investor perspective with deep exposure to the broader property and financial services ecosystem.

Phillip is also CEO and co-founder of Managed, an Australian property payments and technology platform transforming the way property managers, landlords and tenants manage rental payments and property transactions.

Through his writing, podcasts and industry engagements, Phillip focuses on cutting through market noise, challenging conventional thinking and helping investors make more informed, strategic decisions. His commentary regularly explores property markets, lending, taxation, regulation, investment strategy and the changing dynamics of Australia’s housing sector.

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