Choosing the right mortgage for your investment property
Are you starting a property portfolio? Choosing the right mortgage can be a life-changing decision, so the first step is to ensure that you find an investment loan that is going to work for you throughout the life of the property.
Below are a few tips to help you make the right decision when mortgaging your investment property.
Shop around
The point of having an investment property is to invest your money in order to make more, so it is essential that your mortgage is as affordable as possible to allow you to spend less and make more.
Don’t be afraid to shop around and negotiate with lenders. Just because you’re dealing with a bank, it doesn’t mean that the price is fixed. Find a better rate at another financial institution and see if your bank will match it, or go with someone else after doing your mortgage research. Some banks or lenders may offer you a better interest rate if you move your savings accounts to them or open a certain banking account with them. Of course this process can be time consuming, so consider using a mortgage broker to help you to negotiate.
Do your sums
Be realistic about your finances and don’t over commit yourself. Only borrow what you need and don’t let a financial institution push you into borrowing more. Don’t be tempted by the 95% loan – this is a business decision, not an emotional one, so it needs to make sense. Make sure that you’re aware of the fees involved and the interest rate.
Don’t be sucked in by useless incentives, work out if they are actually worthwhile. Make your repayments as high as you can afford. After all, the sooner you pay off the loan, the less interest you will have to pay and the more money you will make.
Read the fine print
Always read the terms and conditions to make sure that you know all the ins and outs of the loan and are aware of what would happen if your circumstances were to change. Finance Detective can help you to decipher this if you need help.
Get expert advice – Finance Detective
Buying an investment property should be an enjoyable process, so why not make your life easier by allowing an expert handle it for you?
You can engage a professional mortgage-broking company such as Finance Detective to help you secure the right mortgage for your investment property.
We will be able to assist you every step of the way, from getting hold of the required documentation to providing cost savings wherever possible. We will be there to advise you on the current market conditions, as well as compare loan products, identify hidden catches and highlight other options you should be looking at.
It goes without saying, we will find the best solution for you and your current circumstances. We deal with all of the banks and financial institutions and will be able to give you a non-biased recommendation based on the facts.
With all of the latest regulatory changes affecting the banks, there has never been a more crucial time to engage an experienced mortgage broker.
The team of experts at Finance Detective are here to help with all of your mortgage broking needs.
Call us today, on 08 9289 7777, to find out more about how we can help with your investment property finance.