Did you know that a product offering could be as short as twelve months in the banking world?
How can we be sure that we are always getting the best deal at the time of going for finance?
My advice to everyone is to build a good relationship with your broker and allow them to do the shopping for you and get them to present to you why this is the best deal.
I currently have mortgages with three lenders across my investment portfolio. I have two properties in my self-managed superannuation fund and they are both with different lenders, because of product offerings at different times and penalties for overexposure within my fund.
I know this must sound like an advertisement for brokers; but I have been on both sides of the fence. I was loyal to ANZ for years. When I sold my business and lost my cash flow, I failed to qualify for a loan. Westpac happily picked up my investment portfolio and looked after me for a few years. I then moved over to a broker who shopped around for deals and gave me flexibility and convenience across my portfolio. I was very grateful to this broker because, at one time, I had lost my job during a loan application and he moved heaven and high waters to still get me the loan.
Finding a broker is easy, but selecting the right broker is important. I have benefited more from a broker who has had a background in business and is also able to write Self-Managed Superannuation loans. Not all brokers are qualified to do this. Because of my extensive portfolio I have selected someone who can mentor me as well as get finance.
I am also a big believer in how the relationship starts out is usually how it ends. If people are late, take phone calls to other clients during the meeting or cancel appointments, they are all clues as to how the person operates.
Ask for a reference from at least two or three clients if you really want to be sure.
An excerpt from Lynne Wilton’s book ‘The Formula – A Mentor’s guide to confident property investing’