If you have clicked on this topic then you understand that property investing is a business not a hobby – to grow your portfolio you need to think strategically from the start. Many an aspirational property investor has knocked on our door only to find out their future borrowing capacity has been greatly hampered by their initial loan set up – even worse they are missing out on ATO deductions that can never be reclaimed. Here is the thing in that many don’t understand till too late – you do not get a start over in the eyes of the ATO – so set it up right to start..
There is also a commonly held believe that if you stick with the one lender they will stick by you – STOP that thinking now – remember you are in business and treat it as such. So here are some secret mortgage broking strategies you may not have seen before that professional mortgage brokers consider:
1. Look at the big picture – the long term goals and plan for those. You should plan for you loan requirements for the next 5 years. So don’t rush into getting a cheap rate if that means it will cost you thousands in a few years as the lender will not allow you to access equity, develop or what ever your need is then
2. Start with the bells and whistles with the big lenders and borrow for 1-3 properties with them
3. Then spread the love to other lenders. They have differing servicing calculators but more importantly they have differing policies. During the GFC when some lenders pulled back on 95% and even 90% loans others were still doing 90% interest only loans – others were not. Spread your risk, remember this is a business.
If you would like to hear more mortgage broking secrets check out my interview with Australia’s #1 iTunes property podcast Everyday Property Investing
Remember to grow a portfolio to retire on you need to start with the end in mind and be set up correctly.