Why your mortgage matters

I’ve listened and I’ve learned, and over the years I think I’ve done pretty well at property investment (and also as a property journalist, I hope) – but you never get a true consensus.

When I talk to 10 different real estate experts, I get 10 different viewpoints regarding which suburbs and which kind of assets will give the best returns. It can be confusing.

But I’ll give you a surefire tip that is guaranteed to get you a BETTER return on your investment – and it doesn’t matter where you bought, when you bought, or how the suburb has performed.

I’m just going through the process of refinancing most of my loans – which I’m sharing the ins and outs of on The Smart Property Investment Show – and that is what’s prompted me to write this article.

I’m going to now save thousands of dollars every year on my mortgages through this refinancing process – and I want to make sure that you can, too.

Here’s the hot tip: get a lower interest rate on your mortgage and you will see MORE money in your bank account at the end of every month. It’s that simple. No surprises … but your bank certainly won’t tell you that you can refinance for a better rate!

Most of us still think that the banks are there to help. Well, on the whole they are, but it’s their interests (and their shareholders) that come first, not yours – so they’ll keep your rates high, if they can, and keep you as a customer on high rates, if they can.

So, the chances are, if you’ve got a mortgage you’re probably paying your lender more than you really need to!

For most of us, mortgage repayments will have the biggest impact on cash flow. Not capital growth, rental increases, or choosing the right property manager.

The penny dropped for me some years ago and I decided to do something about it. I was sick of seeing more money going out on my loans than what was needed to service the debt on my investment properties.

I called my broker and asked them if there was anything I could do. “Sure,” I was told, “let’s find you another lender with a cheaper rate”. Is it really that easy? Well, the answer is yes!

From then on I’ve never looked back. I have my portfolio assessed by my broker regularly. And when I say my broker, I actually mean MY broker.

Managing my mortgages became such a focus for me that I decided to get involved in setting up a brokerage to specialise in financing investment property.

So three years ago I took a stake in a mortgage broker called Finni. Now every new loan of mine goes through Finni, and my broker has refinanced all of my existing loans that are no longer giving me the lowest rate.

So, if you have a broker call them today and see what they can do for you. We’re fortunate that we have great brokers Australia-wide – so get in touch with them.

If you DON’T have a broker, call Finni or jump on their website www.finni.com.au and make an inquiry. And when you do speak to a Finni broker, be sure and tell them that you read this article!