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BLOG: Don’t go lending alone

Phil Tarrant

BLOG: Don’t go lending alone

by Phillip Tarrant | 13 September 2018
finance-advice
1 minute read

BLOG: Don’t go lending alone

September 13, 2018

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 theyll 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.

Youre 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 weve got some good second-tier lenders, I think we call them, in our portfolio. And second tier doesnt 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.

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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 thats really good counsel.

BLOG: Don’t go lending alone
Phil Tarrant
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About the author

Phillip Tarrant

Phillip Tarrant

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... Read more

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