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.
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.
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.