When you’re trying to secure finance for an investment property, it’s important to keep a few simple rules in mind to make sure you get the best deal possible …
Michelle’s settlement agent recommended that she consult a finance broker who specialised in SMSF lending. At their first meeting, the MFAA accredited broker presented her with a handful of lenders who were able to assist with SMSF loans.
A line of credit (LOC), also called a home equity loan, allows mortgagees to access the equity in their property as needed. It can be a standalone product or almost any type of existing loan can be split with an LOC. Interest is usually slightly higher than the standard variable rate.
When taking the plunge into the world of home loans and property investment, the challenge often lies in knowing which expert to approach for help. Mortgage brokers and financial planners, although similar in their professional outlook, cater to different financial endeavours.
The pair had a complex portfolio of property investments. They had recently sold but not settled one of their investment properties, they owned and lived in another property, which was to be sold, and they also owned an investment property in Melbourne. On top of this, Shannon owned a property with her brother in a mining town in Western Australia.
“If someone is relying on finance as part of the property purchase process, I would always recommend they go and get preapproval, because if you don’t have preapproval, it doesn’t really put you in a strong position against the rest of your competition.”