Hi everyone,
I am new to all of this and have been reading “0 to 130 properties in 3.5 yrs” by Steve McKnight and I find that it has very valuable information and tips. However, there is some basic things which I am not sure of.
I would like to find out how to find the best deal of home loans without having to make contact with everyone single bank/lender myself ? ( Mortgage brokers ?, and how do i find them)
Relating to borrowing, how do the lenders access my repayment ability if I want to acquire my second (+ve passive income) or subsequent properties ?
Thanks very much for all your replies.
Cheers,
newkid
Hey New Kid,
There are a few VERY good mortgage brokers that assist people on this site. If you flick through a few posts, I’m sure you will find them. Stuart, Terry & Melanie & others, all know their stuff. I would recommend them over other brokers as they understand what you are trying to achieve.
My opinion for what it’s worth, brokers ARE better for finance, as they can often obtain interest rates that for you going into a branch yourself, you would not get. They also know what products all the banks are offering, and they could point you in the right direction. If you stuck with your own bank, they may not offer what you need.
It is hard changing banks though, for someone who has always stuck with the one bank.
But the bottom line is – the bank doesn’t care about you, why should you care about the bank!As for borrowing ability. Many lenders take into account around 70-80% of your rental income. Some even 90%. A broker will direct you to the right bank for your circumstances. Usually when buying cashflow +ve property, a second or third property or more, is fine, as long as you can pay the 20% deposit & costs, and your income can support it. Steer clear of Mortgage insurance if you can.
Good luck,
Del
Del, thanks very much for your response. [
]Anytime Newkid,
BTW – I’m not sure where you’re your from, but I have used Stuart @ http://www.prosolution.com – He is based in Melbourne.
He has helped us out of a jam or two with finance, and got us on track.
PS _ I get nothing or I am not assoc. to Prosolution in any way though – Simply credit where credit is due.
Bye,
Del
although you should avoid mortgage insurance where possible, because you are a first home buyer that may not be possible. I bought my first property in Melbourne at 21, and unfortunately due to my finances only had a minimal deposit. So, I had to pay the ridiculous amount of mortgage insurance on top of the stamp duty etc. BUT, because i bought then, rather than waiting until I had 20% plus the costs (which would’ve required me to have around $70k in cash, which I was far off from having) the property value has grown substantially which means I can use that equity as a 20% deposit on my next property to avoid the mortgage insurance!
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