Why use a broker for Investment Mortgage?

Property investment is considered as one of the most secured type of investments in Australia. Though, APRA (Australian Prudential Resources Authority), asked lenders to limit the amount of investment lending, it has still seen a lot of growth, due to the growth of rental market.

According to the latest trends and a survey held by PIPA (Property Investments Professionals of Australia), it was found that majority of property investors had secured finance by mortgage brokers and these figures do seem to rise in the future. The reason behind this growth in the use of mortgage brokers for property investment is a direct result of excellent services provided in addition to many others.

Some of the other reasons why brokers are a better source of mortgage for property investors are:

  • Mortgage brokers provide high quality services and are more concerned about finding the right lender or product. In addition, brokers spend a lot of time with clients and try to understand their needs and objectives. In comparison to banks and other big lenders, brokers provide much targeted, personalised and better guided services.
  • Mortgage brokers have access to multiple products and lenders, thus giving an investor a clearer picture. This implies that they can find a more targeted loan product than a lender. A lender will only focus on their own products, while a broker can browse between several different products based on the need of the borrower.
  • As mortgage brokers are more aware of the paperwork and other ins and outs of the requirement of a lender, it helps a borrower to save time and money. With the help of a broker, you can just sit back and relax as all the headache of filing the application in the right manner falls on the broker you use.
  • A mortgage broker can help you go through the complexity of the ever changing lending environment. A broker can guide you better to understand how market changes can impact you and what you can do in case of fluctuations.

In addition, with the help of a specialist broker, you can add value to your investment by guiding you to the right direction. For example, trust structures, buying through SMSF(self managed super funds), commercial property, etc. If a broker is similar to WhiteStar Finance, you can also utilise their services of property investment education or the services of their sister company Fundamental Property Investment to Do It Right.

Source APRA and PIPA.