When you are a first time investor, making the right decision is the cornerstone of success. But that is not all. You’re dependent on a solid team of accountants, advisers and legal help to keep you sorted on your endeavors and grow your portfolio. An important part of this team is your mortgage broker. This is one relationship you want to nurture and leverage. As mortgage policies Australia’s banking sector become stringent, a mortgage broker will be an important linchpin in your success as a property investor. You want someone who can help you navigate the best options and settle on best of mortgage solutions in Australia that tightly align with your short term and long term strategies. From finding the best interest rate to choosing the most effective structure of loans, your mortgage broker can help you in many ways.

How does a mortgage broker help you?

A broker’s job is to liaison with your lenders and financial institutes on your behalf. Their main mission is to find mortgage solutions that are the right fit for your investment need. The right mortgage solution allows you to incur lots of benefits in way of low interest payments, savings on investments, greater tax savings and deductions etc. A well-structured loan will also allow you to flexibility in terms of offsetting and drawdowns. To a layman, the lowest interest rate might seem attractive. However, a loan with good structure could outscore a low interest rate loan in spite of a high rate. This is where an experienced mortgage broker can make a difference. The right one will help assess your status before applying for a loan, ensuring the right type of lender and loan products to suit you. They will educate you on how to find a good builder. You could leverage the vast network and contacts with banks and lenders that could help fetch better results than you’d have received on your own.

Choosing the right mortgage broker for you

Applying for a home loan can be a lot of work. Navigating lending solutions to find the most suitable solution is a difficult decision to make without the right guidance. According to Canstar, a site that compares loan products, there are currently 1800+ home loans offered. With brokers writing almost 50% of these, how do you choose the right professional for you? You need someone that genuinely keeps your best interest at heart and would recommend solutions they themselves would use. Here’s a quick guide to choosing the right broker for you –

Listening

It is essential to work with someone who listens to what you really want. A mortgage broker with experience and the ability to gauge your needs whether long or short term, is an asset. You want to be able to run questions across him as well as clear your concerns and learn to be prepared for challenges on the way. Your mortgage broker is going to be a key figure in helping you get the right mortgage approved.

Credentials

It is important to ensure that your broker is appropriately qualified and licensed to handle your loan application process. They should have a membership of the MFAA (Mortgage and Finance Association) and/or the Financial Broker Association of Australia. A certificate IV in Financial Services is also a must. Also, your mortgage broker should be able to help with varied needs whether it is for an SMSF property finance deal or buying through a real estate development syndicate.

Experience

Investment experience is a handy skill to have for a mortgage broker. Although your broker helps you only with procuring the loan, a property investment experience will make it more effective when helping you choose the right loan structure, the type of rate whether fixed or variable and terms of the loan.

Credit Guide

You will want to check your mortgage broker’s credit guide that includes some information to help you and your broker keep things transparent. The document will contain information like the services offered, policies, lenders, commission structure, background etc. This should give you a good idea of the experience your mortgage broker has.

Word of mouth

More often, word of mouth referrals proves to be the most reliable means of finding the right broker. If the reference comes from someone you trust and has used the services of the professional you’re recommended, it helps create a two-way benefit. Your search for the right mortgage professional should always start within your circle to ensure comfort and ease that comes with dealing with a familiar and tested service. A good mortgage broker is someone who can do more than just find you the lowest interest loans. Having someone who has a solid experience, a history of referrals and can provide genuine guidance will pay off in the long run. At Richman Property Investors, we can guide you to an experienced broker that understands and works according to your property investment goals in Australia. Get in touch with us for a free consultation today.