Sure, lending restrictions have made it harder for investors to gain home loan approval, which has slowed lending approval rates. But, this doesnt mean that investment loans cannot be gained. What it does mean, however, is that investors need to find a savvy broker who can help them find a lender that will assist them to buy their next property.
How Does a Mortgage Broker Help an Investor?
Mortgage brokers assist investors by finding finance for their property from a selection of lenders. Most investors elect to use a mortgage broker because they have access to more home lending products than a single lender. Plus, a broker tends to do a lot of extra groundwork on behalf of an investor, more so than a bank or other lender would.
In fact, according to a recent survey conducted on investor sentiment, which asked more than 1,000 property investors about their feelings towards mortgage brokers, 60 percent said that they had used a broker to secure their investment property mortgage. More than 70 percent of investors surveyed said that they would use a broker for their next property. The high number of results suggests that many investors are feel at ease using a mortgage brokers services to secure their home loans.
In fact, many survey respondents said that the biggest draw-cards for them using a broker to secure their home loan was a number of factors, such as greater borrowing options, the saving of time and money, better customer service, and assistance navigating new legislation. So lets look at these factors in greater detail now.
Greater Borrowing Options
Mortgage brokers have access to a larger number of mortgage products than a lender does. This is because a broker typically represents a number of lenders and has a complex understanding of your lending options and what type of products are the most suitable for you and your situation. A broker can also help you maximise your investment strategy and can compare home loan products for you, so that you can find the right financial structure for you.
Brokers Can Save Your Time and Money
A mortgage broker is the preferred choice for finding cost-effective investment financing solutions for seasoned investors. This is attributed to the fact that these investors often dont have a great deal of time and they wish to save as much money as possible so that their cash flow is not reduced.
Better Customer Service
Brokers offer you a complete wealth creation service, and theyll usually spend more time with you discussing your finance options than a conventional lender. This is so that they can understand your needs and overall objectives.For many investors a more personal approach is preferred, over a larger, often more sterile financial institution. All investors aim to build wealth. This means that theyre looking to save money, get quality support, financial guidance and to have a good reliable service, especially if they wish to ask any questions.
Assistance Navigating New Legislation
Recent changes to lending policy has created a mine-field for many investors, with many having difficulty understanding how these changes apply to them. This is when a mortgage broker can help. A mortgage broker is able to not only explain how new legislation applies to an investor, but they can also help an investor to navigate their way around any challenges that may present themselves.
Many brokers are now expanding their services to include qualified property investment advice. This is enabling property investors to build their investment knowledge and to secure competitive financing options for their investments.
Are you looking for a cost-effective investment home loan? If you said YES, then contact eChoice, we can help YOU find the right home loan for you.
Written by eChoice
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!