Hello enthusiastic property people, It's my wife's turn to buy a PPR. She didn't like our previous mortgage broker. She wants to get her loan her own way. I know the limitations, I also know my wife. If you were going to choose a bank to go with at the moment that offered the best future structuring potential, allowing her to buy IPs further down the line, which would you recommend? Obviously a lower IR is good, but I'm more interested (pun yes, hilarious, never ever been done before) in a good structure for future potential. Thanks.
There are a few things to consider other than the rate. 1. Do I borrow at 80% and save LMI or above 80% and have funds left over for a future purchase? 2. Do I need to have a combo loan of part fixed and part variable 3. What is the cash out policy of the lender like? 4. What is the servicing calculator of the lender like? As in will I hit my max with this purchase and in turn not allow me to pull out any additional equity? 5. Do I need a lender that allows for multiple offsets or do I only need one These questions are a good start to determining which lenders may be appropriate. There may be certain situations that may limit you to one or a couple of lenders such as issues with the security, her employment (casual, medico, etc), need for a common debt reducer, etc.
By providing bits of advice through your own filters gleaned from lack of challenging questions to the actual goals and needs, let alone resources and risk profiles, of the borrower, you are potentially worsening the outcomes - I know thats obviously NOT the intention. I expect you are on the inside of the transaction, and its damn hard to be "outward looking" when looking to serve an inward need. happy wife, happy life - let her have the choice of what house you buy and what mortgage to buy, and live in relative peace . One useful thing might be our NUMBER one rule for a PPOR for us is the loans/lenders must have the capacity for an active debt recycle strategy. That blows out a bunch of lenders straight away. ta rolf
Thanks Rolf, this leads to the next question. Which "loans/lenders must have the capacity for an active debt recycle strategy." I've heard to try a big 4 first and then move on but I feel like at the moment the 2nd tiers are much more competitive.
Can be done with any lender, but AMP one of the best Strategy: Using AMP’s Master Facility to Debt Recycle Strategy: Using AMP’s Master Facility to Debt Recycle Westpac is possibly the next best
AMP are awesome if you've got a spare 2 months up your sleeve for an approval. This is where a broker is very helpful - you don't know what you don't know when you approach a bank, and if you approach them directly they're unlikely to turn you away 'because they're too busy'. They'll just add you to the queue.
Since this is going to be the main residence there are plenty of opportunities for you to structure it to save interest, save tax and grow wealth.
Thanks @Kat @Terry_w @Jess Peletier This is what I was looking for. I remember reading that AMP used to offer discounts to shareholders too, not sure if this is still the case, but I'll look into what's on offer. Already looks very good.
