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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.

PHIL BLOG

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 executive editor – Real Estate at Momentum Media. He is also an investor with a large property portfolio.

He leads the content strategy and corporate growth for a range of market and business intelligence platforms at Momentum Media, including Smart Property Investment – the authoritative voice for Australia’s property investment community.

As head of the Smart Property Investment Podcast Network, he also steers the largest network of property podcasts in Australia, which collectively generates nearly 2 million downloads every year.

There are over 2.6 million investment properties in Australia, with over 2.1 million Australians (or around 8 per cent of all Australians) owning one or more investment properties. A vibrant and critical sector for creating wealth for Australians, the property investment sector is expected to remain a pillar to the national economy.

For nearing a decade, under Phillip’s stewardship Smart Property Investment has been informing and educating property investors on the tactics and strategies to create wealth through property.

Trusted by over 100,000 Australians each month as the turn-to independent resource for property market insights and information, the brand supports the mantra of "for investors", by investors’, drawing on the unique position that Phillip and Smart Property Investment share, warts and all, its own journey through property.

The Smart Property Investment Show, part of the Smart Property Investment Podcast Network, is one of Australia’s most popular podcasts, forming the keystone of an integrated digital platform delivering daily property updates, live broadcasting, insights, opinion and data to property investors across the nation.

Underpinned by a content team universally recognised for their knowledge of the sector and approach for clear and concise communication, Smart Property Investment has become a central part of Australia’s property community.

About Momentum Media

Momentum Media is a leading media and market intelligence company, and the business behind Smart Property Investment, REB and RPM.

Guided by a strong sense of purpose to support our communities, Momentum Media has forged its place as one of Australia’s most influential media and professional development businesses.

We have been equipping Australia’s corporate, investor and SME sectors with market and business intelligence for over a decade.

Across an integrated business supported by digital, events, broadcast, research, print and social platforms, we are guided by the purpose: Be Better informed.

This passion for informing, educating and inspiring drives us to build more engaged communities, delivering greater leadership to the markets we connect to and forging closer relationships with our audiences.

Being at the forefront of media innovation, backed by a pioneering spirit, has been central to Momentum Media’s growth.

We’re an evolving, forward-thinking business based on a purpose that supports corporate Australia and the markets critical to our nation’s economic prosperity and security. We’re also focused on delivering exceptional value to our commercial partners.

We adapt on a daily basis to rapidly changing market places; we’re a fluid media business, unanchored to any particular technology, channel or tone of communication.

With a reach spanning nearly 2 million professionals, high-net-worth individuals and SME business owners, we’re connected to the rapidly changing preferences and attitudes of our communities – and we’re making a positive contribution for our communities to thrive.

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