Last Updated: 1st February, 2024

Why Should Property Investors Use A Mortgage Broker?

Property investors value their time, and going around looking for the right investment loan is tedious. Since different lenders have different risk appetites and lending policies, it’s hard to navigate the maze to find the right lender and apply. A mortgage broker can make this easy for you. A broker will compare different investment loan options and curate a list of the products that meet your investment goal – but that’s not all. Property investment is also a game of finance. A mortgage broker will help lower your cost of finance by finding you the cheapest rate; they will give you greater flexibility through a stand-alone loan. They will also ensure you can use equity to finance your next property. At Home Loan Experts, our mortgage brokers take it to the next level by helping you structure your investment loan so you can expand your property portfolio. We do more than just provide and compare options. We help you build a mortgage strategy that fits well with your investment strategy.

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How To Find The Best Mortgage Brokers For Investors

A mortgage broker helps you get rid of the anxiety around choosing the right investment loan to meet your goals. Here are some questions to ask, so you can find the best one:
  • How long have you been working as a mortgage broker?
  • Do you also invest in property?
  • If yes, who is your investment loan with and why?
  • How much experience do you have helping property investors?
  • Are there any fees for your services?
  • How many lenders do you work with?
  • Describe your most recent experience helping a property investor

Is It Cheaper To Get An Investment Loan Through A Mortgage Broker?

Yes, in most cases it is. Most mortgage brokers do not charge fees for their services. The lender pays them a commission. Depending on what you want to achieve, a mortgage broker can save you money in other ways as well; for example, if you aim to have a competitive interest rate, a mortgage broker will compare a list of viable options. If you were to go directly to a lender, you would get only that lender’s interest rates to choose from. At Home Loan Experts, we do not set and forget your investment loan. We do an annual review to help to evaluate your equity and finance positions. Your loan stays cheaper as long as you are with us.

How Is An Investment Mortgage Broker Different?

Mortgage brokers for first home buyers or other owner-occupier loans focus on getting the best savings for their borrowers – that means they help borrowers get a home loan at the lowest cost possible. However, investment property mortgage brokers know that it’s about getting the highest return on the investment. That’s why an investment property mortgage broker should be part of your team from the onset. Along with finding finance solutions for adding to your portfolio, an expert mortgage broker will help create or revise your property strategies and steer you towards the right property. A mortgage broker for investors understands the actual costs of getting an investment loan and will calculate all the expenses involved to determine your true borrowing power.

How Can A Mortgage Broker Help Property Investors?

  • Finding you the loan that suits your investment strategy
  • Avoiding the rookie mistakes that first-time investors make
  • Giving you tips on how to maximise your cashflow without eating into your profits
  • Defining and creating a finance strategy to expand your property portfolio
  • Calculating the costs of getting a loan
  • Curating a list of potential lenders and their loan products
  • Updating you regularly on what’s happening with your application
  • Making you a lower risk to lenders, so you can get approved
  • Sharing expert tips and knowledge on property selection, renovation and development
  • Taking the emotions out of making the right financial decisions

Get Help From The Investment Loan Experts

At Home Loan Experts, our mortgage experts are seasoned property investors. We know that for you, it’s more than just the interest rates. We understand the limiting factors for investors:
  • A small deposit size, as you want to buy more properties. We have lenders on our panel that can offer investment loans for more than 95% of the property value.
  • Opting for interest-only repayments helps maximise your tax deductions and improve your cashflow.
  • Some lenders restrict lending to investors with high borrowing power, as they have a Debt-to-Income Ratio (DTI) cap. However, we know lenders who can help with this.
  • Lenders’ prices for investment loans vary a great deal from those for home loans. As your mortgage broker, we will shop around for lenders that can provide a competitive interest rate and meet your other needs.
  • Tax benefits, negative gearing and depreciation can be complicated. Our mortgage brokers will take these factors into account to structure an investment loan so that it matches your needs.
Overall, a mortgage broker understands your long-term goals and focuses on all factors to get you the right investment loan for your strategy. We’re here to help. Call Home Loan Experts on 1300 889 743 or complete our free online assessment form today.