ive just found 2 propertys for approx 250k each i rent and i have one property worth 400k i owe 180k on it what are the chances of borrowing for the 2 i only have 10 k but in 2 weeks i have another 10k do we think i should go thru a broker and try to get fiance for both or just go for one or go to a bank
Hi Rye,
From an equity position you are well placed to borrow the additional funds. However a standard lend is also determined by your serviceability (ability to fund the loans) and without this information I cannot be of more use. An asset loan may be an option.
Given the situation I suggest a good broker is your best bet.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Derek is right although admitedly i am slightly biased.
Your Bank will tell you what they have to offer only. They can’t tell you whether they are competitive of whether the structure is correct.
A independant broker has a whole range of lenders and products to appraise and can usually not only save you money but ensure that you loan is established in such a way to help develop your property investments.
Try any of the online brokers here and see what they can offer you.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
I agree with the above – most brokers do not charge fees – they get paid a commission from the bank/lender which is not passed on to you so it costs you nothing more to go through the broker than if you went directly to the bank however you have the benefit of them shopping around for your finance so they will be able to give you a range of options to choose from.
YOu should have enough equity in your existing property to go ahead with the finance – the broker you use will be able to ensure you are able to service the loan through the particular lender you wish to use.
Anita Marshall
Mortgage Planner/ Managing Director
Advanced Finance Solutions
[email protected]
http://www.advancedfinance.com.au
[blink]Hi Rye,
I know I am going to ruffle some feathers here but just be careful with mortgage brokers, some and I stress some ie not all can be like used car sales men, a little pushy and some are not always looking out for your best interest, some focus on the best % return a particular bank is offering them as commission. I found my first and 2nd mortgage broker not very helpful, I ended up at the NAB who offer a great range of loans and products and assign you a personal banker to assist you pre and post your mortgage. Good luck.
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email [email protected]
Hi Jeff,
I’m sorry to hear of your experience with brokers in the past. I trust neither were people who post here, as all of the brokers here are very knowledgable and would save you, or anyone else who went to them, money.
I have heard a lot of people, including the author of a research report on the broking industry, suggest that brokers place people where they get the highest commission. I’m sure there are some who do, but the truth of the situation, is that the difference is usually so small that the broker would be crazy to not act in the best interests of the customer, even from a purely selfish point of view.
NAB have a lot of success with their private bankers, I think mainly because they make people seem important. However, these people do not always have the clout you might think they have in terms of pricing etc. I recently negotiated a 0.4% better rate for a client than their NAB private banker was able to offer, this is simply because, as a broker I have a choice of lenders and at times one or more become very aggressive. A good broker will know which and be able to take advantage of that for their clients.
Regards
Alistair PerryJeff
I am with Alistair on this one. The difference between the commission rates is so negligble it is not funny.
Recently a client approached me and had been offered a loan by his Personal Bank at the NAB which included a LOC. The Bank were going to offer him a 0.15% discount due to the loan amount.
I gave him a range of options and another lender whom he ended up going with would offer 0.7% off the total loan amount inclusive of the LOC.
I assure you they were not paying the highest commission rate.
Remember apples are apples and oranges oranges. When comparing products there is more to live than just the interest rate but also the terms, conditions, costs of the loan and the after sales service the lender will give your client.
If brokers went for the lender offering the highest commission rate then the non conforming lenders would get all of our business and that certainly does not happen.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi guys thanks for the replies. As I stated “some” brokers do not have the best interest of their client at heart.
True story : my first broker suggested I use the first home owners grant to “get me over the line” even though he knew I was buying as an investment, he suggested I place the utilities in my name and not lodge the bond with the QLD RTA, as far as anyone was concerned I resided in the property….and….as he got even more excited he explained I would also save on stamp duty being a owner occupy purchase..!!
A polite thanks for no thanks was in order.
Cheers Jeff
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email [email protected]
Originally posted by jjaaus:True story : my first broker suggested I use the first home owners grant to “get me over the line” even though he knew I was buying as an investment, he suggested I place the utilities in my name and not lodge the bond with the QLD RTA, as far as anyone was concerned I resided in the property….and….as he got even more excited he explained I would also save on stamp duty being a owner occupy purchase..!!
A polite thanks for no thanks was in order.
And full credit to you too Jeff, congratulations. Some others would have taken the ‘incentive’ offered and possibly found themselves on the wrong side a little later.
I don’t mind people using the ‘system’ providing they play by the rules – I have no time for people who do not play by the rules.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
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