I've been a property investor for about 25 years now, and because I've used the equity from each property to fund the next one it's always been reasonably easy to secure funding.
Just recently my husband decided he would like to get started as a property investor. I was really positive about this – after all, property has been a great investment for me. However all my properties are owned in my name so I knew the equity I had built up wouldn't be relevant to my husband. That's why my first thought was “Uh oh, we're going to have to go through the rigmarole of applying for a loan.”
Just to make things a bit more interesting, the apartment my husband was interested in is a small one-bedder in Brisbane's CBD. We felt it satisfied a niche rental market, and our calculations showed the property would be positively geared. Nonetheless I was aware that lenders can be very particular about the size of properties they lend against, and small apartments can be especially difficult to secure funding for.
At that point, we just weren't interested in getting the run around from lenders. Life is complex enough as it is.
That's when I considering using a mortgage broker. I felt it had to be easier than approaching lenders ourselves.
When it came to choosing a broker, we did lots of research – and we kept coming back to Mortgage Choice. I guess the real deal clincher for us was that our Mortgage Choice broker made the whole experience really positive. In particular he worked totally around us and our needs.
Our first meeting for example was at a local club. Then as we grew more comfortable with using a broker, we had meetings in our own home. Our Mortgage Choice broker was always on time, extremely well-prepared, and very professional and courteous.
He agreed that a very small apartment could be a problem with some lenders. He assured us though that he would be able to find a bank willing to lend against the property. As it turns out he was spot on. We got as good a deal – if not better, than if we were buying a standard home.
It was a fantastic moment when the deal was done and dusted, and yes, we popped the cork on a bottle of champagne to celebrate! We were both very happy with our achievement. I was particularly amazed at how easy it had all been with the help of Mortgage Choice, and my husband is now really confident in organising a mortgage – so it's been a tremendous experience for him.
The real moment of delight came when we received our first rent cheque. It showed that all the figures we'd worked were correct – the property would indeed pay for itself, and it took just a week to find a tenant. So our belief in a niche market paid off.
I'd definitely recommend Mortgage Choice to anyone considering a loan. It means there's no need to have direct involvement with the lender and the process could be a lot easier than you think. With the help of your broker, you could be popping some champagne corks of your own sooner than expected.