It can be a little intimidating, as an individual, to go cap in hand to the bank ‘can I have more please, sir?’.
When it comes to getting the right loan for your needs, if you qualify for one, Bank Managers have a vested interest to keep your business and so will naturally be biased in their recommendations for their own finance products – which may not be right for you. They also don’t have an incentive to offer a the best possible interest rate and product package (unless they take you seriously when you threaten to switch banks).
Professional loan negotiators – Mortgage Brokers – can be called upon if you want to ensure you get the right loan at the best possible price.
But not all mortgage brokers are created equal, so here are five signs of a good mortgage broker (and reasons to use one):
1) Good mortgage brokers work with you to develop a Finance Strategy.
Finance is more than just getting a loan. Thorough planning is paramount to achieve success. It’s all about developing a comprehensive finance strategy that plots a course to your specific wealth creation and lifestyle goals.
For that, a reliable mortgage broker can give you unbiased recommendations and transparent review and access to the best available finance products from leading lenders in the market.
They not only help you plan, but also do all the ‘leg-work’ on your behalf!
If a mortgage broker is not taking a strategic approach to getting you finance, then it’s time to look for another one.
2) Good Mortgage Brokers will evaluate your current Loan Structures
Good mortgage brokers will assess the finance structures you have currently, to ensure that they are working at peak efficiency. They will also ensure you have greater flexibility and a diversity of lenders. Having more than one lender would allow them to negotiate more appealing finance options & provides you with more flexibility.
A good broker does the research to find the lenders that will work best for you at each stage of your finance plan. No one lender can do it all.
It is important that you partner with the right “team” to support you to achieve your property investment goals.
3) They ensure you have the appropriate loan and ownership structures
Finance that is correctly structured with your investment and business plans is paramount. Most brokers do not understand asset protection and investment strategies and this is where our experience counts. Smart mortgage brokers will always work with your accountant/financial planner to ensure the finance suits the strategies and structures that you have decided upon.
In addition, a good broker is trained to recognise where there may be a better solution to how you are currently structured and refer you to a property specialist tax accountant for specialist advice. It can cost you a significant amount of money if a property is purchased and/or the loan is written incorrectly. It can also be difficult and expensive to correct or unwind finance structures that are inappropriate for you. This is why it is essential to get it right from the start.
4) Be safe – Get a ‘Buffer’ in Place
A safety net for you and your family is essential, and by using the equity in your existing property/ies, a savvy finance broker can put this in place for you. A buffer account can help you bridge challenging times when you may be in-between jobs, recovering from illness or searching for a new tenant. Minimising risk is vital – a good finance broker knows when to refer you to a trusted financial adviser to review the insurance you have in place and ensure you are moving forward, safely.
Chan & Naylor Finance Brokers are well attuned to a panel of over 30 lenders with a variety of loan products on offer which they canvas regularly and can recommend the most appropriate one for your needs (not the banks!).
5) Dealing with a Broker greatly improves your chances of getting a ‘Yes” to the finance you need.
Have you ever wanted to know that a lender would say “yes” to your loan before you submitted an application? A highly experienced mortgage broker would understand the various lenders’ policies and their mortgage insurer’s requirements. They would also complete thorough due diligence to determine if you qualify before the loan application is submitted. A good finance broker is also mindful of your Credit Score and Credit files and ensure this is protected so not to negatively impact on your approval.
In summary, good brokers not only know how to find the best possible loan appropriate for their clients, but they know how to help their clients develop a financing strategy that includes structuring the loan in alignment with the ownership strategy recommended by your property specialist tax accountant, and ensure clients have a sufficiently large enough financial buffer.
Chan & Naylor is a national group of property specialist accountants, mortgage brokers and financial advisers.The Chan & Naylor Finance team has a strong reputation and track record in the market among bank and non-bank lenders – our loan submission – to approvals – to settlement conversions is extremely high. We have access to over 30 lenders through an experienced team of good mortgage brokers in Sydney, Brisbane, Melbourne, Perth – with the ability to also service clients Australia-wide.
Tap here to find out more about Chan & Naylor Finance Services
or Call 1300 306 868.