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Come at me bro(kers)!

Discussion in 'Property Finance' started by AB12, 11th Jan, 2017.

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  1. AB12

    AB12 Member

    Joined:
    29th May, 2016
    Posts:
    6
    Location:
    Brisbane
    Good afternoon brokers,

    I am looking to refinance my loan.

    I have a slightly less than $250,000 owing on a townhouse in Brisbane.

    I would like to get an Interest Only loan with an Offset. Property value would be $430,000-460,000.

    Incoming rent is $420 per week. My income is $114,000.

    Preference would be for a more well known lender if possible.

    Can you let me know what products you have available that would suit my requirements? PM is fine if that is what you prefer.

    Thanks and regards,
    AB
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,419
    Location:
    Perth WA
    There are lots of products that suit those requirements - nearly every lender has something that fits.

    A lot more info is required to make a specific recommendation - there's really nothing to be gained by getting 10 opinions from forum brokers that may or may not differ - which would you choose? Who's right? :)

    Best to find someone who you relate to via a bit of a read of the forums, and hit them up.
     
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  3. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,568
    Location:
    Adelaide, SA
    This one made me laugh. Jess has pretty much summed it up - most successful brokers wouldn't even entertain this as it doesn't result in the valuable client-broker relationship which helps build a sustainable long term structure.

    Definitely have a read of the various brokers on the forums - there's lots of competent people here. Getting the right fit in terms of personality/style is important, so give them a call and go from there!
     
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  4. AB12

    AB12 Member

    Joined:
    29th May, 2016
    Posts:
    6
    Location:
    Brisbane
    Thanks for your input Jess and Corey.

    Is it not a case of evaluating the options and picking the best rate, from a reputable lender willing to lend to me considering my financial situation, and meets my requirements of being for investment, interest only and with an offset.

    How does style etc. come into it?

    I am not trying to be obnoxious, genuinely trying to gain understanding :)

    Thanks and regards,
    AB
     
    Jess Peletier likes this.
  5. Perthguy

    Perthguy Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    7,470
    Location:
    Perth
    Rate is one consideration but your broker needs to understand your plans for the property and for your investing future.

    A broker who simply finds a product with the best rate that ticks your other boxes may not have found the best product for you. For example, if you are planning to fix all or part of your loan but they picked a lender with an uncompetitive fixed rate, or you want to borrow against equity in future to buy another IP but the lender your broker chose does not have a good equity release policy. There are lots of complications.

    It takes knowledge, skills and experience to develop a finance strategy to build a portfolio. Some brokers are good at this and some are not so good (in my experience).
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,419
    Location:
    Perth WA
    If you have a bit of a read of the finance section, you'll come to realise that rate tends to have little to do with it, and it's the long term plan and structuring that make all the difference. This is why style and personality come into it - it's hopefully the start of an ongoing relationship rather than a 'there you go,best rate, see ya!' type scenario.

    If you don't get along with the person working with you, or don't understand their style of communication or way of doing business, it can be quite frustrating for you.
     
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  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,585
    Location:
    Gold Coast
    Transaction vs leadership/relationship

    Most peops dont know what they need, because they havent addressed what their goals are or what the strategies are to get there.

    Most transactional brokers will often just accept what the client "wants"............. thats what we are generally trained for.

    ta
    rolf
     
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  8. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,574
    Location:
    Melbourne, Nationwide
    The different in rates from one lender to another is often 0.1% - 0.2%. In the context of a $250k loan, this is $250-$500 per year in interest. It's nice to have that extra money, but it's not going to change your life.

    Lenders have also been shuffling rates a lot in the last 18 months. A slightly cheaper loan might not be slightly cheaper in a few weeks time.

    So getting a competitive rate is important. What's more important is understanding what your longer term goals and objectives are and aligning this with the right product and structure to meet those goals. Choosing a cheap lender today might cost you a lot more than it saves if you end up needing to refinance again to execute the next phase in your strategy.

    But hey, if you want a really low rate, here's an account...
    2.60% and no setup or ongoing fees!!!
    NetBank Saver – CommBank
     
    Last edited: 11th Jan, 2017
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