How To Get The Most Out Of Your Mortgage Broker (Ep120)
As a property investor having experts on your team who can help you is extremely important. One of those experts should be a mortgage broker.
Today I want to talk about how you can get the most out of your relationship with your mortgage broker.
As a property investor having experts on your team is extremely important one of those experts should be a mortgage broker and today I want to talk about how I can get the most out of your relationship with your mortgage broker. Today’s episode is brought you by ownyourownatm.com.au with guaranteed returns of 20% or more own your own ATM machine placed in a convenient location can be a great way to supplement your property portfolio or to generate excess cash flow, to find out more head over to ownyourownatm.com.au today. You are going to want to have a good relationship with your mortgage broker because your mortgage broker, if you have that good relationship can help you extend your financing further and build your property portfolio faster without a mortgage broker it is much harder to navigate the choppy waters of loans and the different loan provider out there and I think there are something like over 800 different loan products available to you and finding out which one exactly suits you, your goals and then changing as your goals and situations changes is not an easy thing to do. Here are some tips about how you can get the most out of your relationship with your mortgage broker. Tip # 1.
- Be in the financial position to buy or close to buy when you visit your mortgage brokers; mortgage brokers get paid on commission for free service to you and they are going to work harder for you. If they can see that you are in a position to buy and the deals are going to go through and they get paid, the fact of the matter is they could sit down with you spend hours with you going through your different loan options, investment goals and finding out the best strategy for you but if you don’t go ahead and get a loan then they are not going to get paid and that doesn’t incentivize them to help you, but if you are in the financial position or almost in the financial position to go ahead and then they are going to see light at the end of the tunnel and be incentivize to treat you better as a customer because obviously they want the deal to go through for you.
- Make sure they understand your goals; there is a few different ways you can choose loans, you can choose loans based on the best interest rates, lowest fees. Sometimes some mortgage brokers may choose a loan based on commissions they are going to get but if you sit down with your mortgage broker and they can understand your financial goals, understand what you want to achieve then they can actually help you look through all the loans available and actually choose the best loans to help you achieve your financial goals and help you along that path so by them understanding where you want to go they can help you structure your loans and portfolio in such a way that you can get there as quickly as possible. It is important to find a mortgage broker who is happy to sit down with you and talk through your goals rather than a mortgage broker who is going ot say this one has the cheapest interest rate and lowest fees because truthfully you can find that on the internet.
- Create a long-term relationship with your mortgage broker; many of the mortgage brokers I have meet and interviewed with and talked to have been in the industry a longtime. Don who is from mortgage choice has been in the industry for over thirty years, if you want to get in contact with him at onproperty.com.au/don and that will re-direct you to his contact details and Brad who I interviewed from Oceanhomeloans.com.au has also been in the industry for a long-time. A lot of mortgage brokers are going to be doing these loans for a longtime to come so if you can create a long-term relationship with them where they are not just going to get one loan out of you but they are going to get the re- financing that you do to they are going to get the next loan or go ahead and buy a second property, third investment property and they are going to want to work with you more because obviously the more loans you do the more re-financing you do the better position they will be in because it helps them to earn money as well. The thing you need to understand the average bank loan only last for 4 years or something like that so often homeowners or investors continually re-finance and you probably want to re-finance in the future to make sure you are still getting the best loan for you to again move you towards those financial goals. By creating that long-term relationships with your mortgage broker you can come back to them again and again keep them in the loop, they can keep you in the loop if any changes happen which could benefit you because there is new products they can contact you because you have that long-term relationship.
- Ask them to teach you about how loan structures work. Mortgage brokers cant advice on taxation and how you meant about going about structuring your tax benefits and a great deal of knowledge and maximize your portfolio how to pay the least amount of money towards the bank and the most amount of money towards yourself, they have this wealth of knowledge of the industry, of home loans, how they are going to change in the future and so by asking them to sit down with you, take them out for lunch and get them to teach you more about loans because if you get the right package for you then it can help you achieve your goals so much faster. Today’s episode is brought to you by ownyourownatm.com.au , it has been a well know business of owning your own ATMS since 2009 clients earning a guaranteed 20% per annum it is possible to use your ATM income to subsidize a large investment portfolio or to help you inject cash into your investment portfolio unlike third deposit where you are liable for tax form the first interest you earn ATM’s being plant and equipment can be depreciated to offset the transaction income that you are earning. ATM’s are placed in a variety of convenient locations around Australia with experience professional ATM deployers placing the machine on site and managing it for you. ATM owners are paid a minimum of 20% per annum or 30 cents per transaction whichever is higher or lower and its paid monthly so there is absolutely no out lays for the life of the 8-10 year agreement. This is an exciting investment option visit ownyourownatm.com.au today.
- Find one with experience in your area of investing so there is many different mortgage brokers out there and some of them specialize in residential properties, positive cash flow, commercial building there is many different investment strategies out there. Some of them might even specialize in construction or development but if you are going about a certain investment strategy it might be worth finding a mortgage broker who either has the experience themselves investing using that strategy or experience helping other clients investing in that strategy so if you are going after a construction loan then it might be worth looking for a mortgage broker who has dealt with a lot of construction loans in the past rather than a mortgage broker who has only done residential loans and hasn’t done any construction loans before.
- Go to them before you make an offer; so a lot of people go to their mortgage broker, they have made an offer on the property, the offer has been accepted they might have even entered in the cooling off period and they now go to their mortgage broker and say ok I need a loan can you help me out? Go to your mortgage broker before you sign a contact, before you even make an offer on a property and get what’s known as pre-approval, this is when a lender will give you approval for a loan based on the valuation of the property so what this means is you can go out in the market firstly you know how much of the loan you can get so you can look within your price range but it also speeds things up so when you do have an offer accepted all you need really is that valuation of the property to go ahead. If you go ahead and you make an offer on a property then it just squeezes the deadline that’s going to make it harder for you to get the loan on time.
- Ask why a loan is best suited to you; so a mortgage broker will always present you with many different options maybe three great loans for you. It is important to ask them why this is the best loan for you. Is it the best because it has the best mortgage rate, low fees does it offer a honeymoon period, off-set account or some feature that other loans don’t have try and ask them what’s best for you get an idea of the features that the loan they are offering has and make sure you are getting the right loan to helping you achieve your goals. Make sure to take what they are saying at face value and again go through that learning process so that you understand more and they can help you more if you understand more.
- Learn how about investing and loans yourself and to actually bring something to the table. If you know more about investing, depreciation and tax advantages and the purchasing process then you are learning about positive cash flow or a different investment strategy will bring that to the table with you when you talk with your mortgage broker about the investment strategy that you are thinking about because chances are they have other clients who are employing that same investment strategy they maybe able to network the tow of you together so you can meet some great people who are trying to achieve the same things as you or maybe they can offer advice on what works for one client and what mistakes another client made, obviously in privacy they are not going to tell you who the clients are but they might be able to offer some advice.
- Get your loan through your mortgage broker; the amount of times it happens when new home buyers or investors will go to a mortgage broker for advice about which loan to get and they will go and walk into that bank and then they will sign up for that loan at that bank, do not do that if you want to have a long- term relationship with your mortgage broker remember that the mortgage broker isn’t paid by you they are paid by the banks and that only happens if you sign up with a loan through your mortgage broker, so by going external and going to the bank there is no relation with the mortgage broker and therefore the mortgage broker isn’t going to get paid. If you are going to a mortgage broker for advice get your loans through them. There are generally no disadvantages to going to a mortgage broker instead of going to a bank or lender yourself, if there are I don’t know about them. That is an important point if you want to have that long-term relationship with your mortgage broker.
There you have it nine (9) different tips on how you can get the most out of your relationship with your mortgage broker and I hope those tips help you over the years to develop a great relationship which leads to you getting the best loans for yourself which also leads to you moving towards your financial goals as quickly as possible. If you want the full transcription of this episode or if you want to download the podcast or stream the video then head over to onproperty.com.au /120 which is for episode one hundred and twenty. Remember that your long-term success is only achieved one day at a time.
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