Getting a property loan involves much more than simply making an application with a lender and crossing your fingers.
And most investors don’t realise that there’s actually a huge difference between using a broker…and going straight to your bank or lender.
When it comes to finance approval, every lender uses different policies, so each one will treat your application differently.
With an experienced mortgage broker on your side, your loan application can be tailored and presented to help it best meet the criteria for the lender you are applying through.
For instance, every lender applies an interest rate ‘buffer’ to the current lending rate when assessing your application.
This is known as an ‘assessment rate’ and is the figure that banks use to ‘stress test’ your mortgage.
If Bank A’s current variable interest rate is 6%, then their assessment rate might be 8%.
However, Bank B might have an interest rate of 6% and an assessment rate of 7.5%.
It’s only a difference of 0.5%, but that could impact your borrowing power by up to tens of thousands of dollars.
Let’s say you’ve found the property you want and you need to borrow $400,000.
Bank A might assess your borrowing capacity at $390,000, while Bank B’s lower assessment rate might mean you’re approved at $410,000.
As you can see, the variance between each bank’s internal procedures could have a huge impact on your borrowing power.
It could actually be the difference between you getting the loan you need, or being denied for finance.
This is one of the many things we teach our mentoring students about ‘property finance’. In fact, property finance is one of the biggest areas of focus in our mentoring program.
That’s because when you ‘master the money’ in property investing…you become an ‘unstoppable force’ buying property after property.
But if you don’t – you’ll likely hit a ‘financial brick wall’ and won’t achieve your financial goals.
Fast Track Your Property Investing Today
If you’d love to have a clear step-by-step ‘game plan’ to build a multi-million dollar property portfolio….
And, if you want to speed things up…so you can reach your financial goals much quicker….
Then your next best step is to book a Property Action Call, with one of my personally trained coaches…
In your property action call you will…
- Discover how you could ‘tailor’ my ‘10 properties in 10 years™’ investing system…to your personal situation
- Get a clear ‘snapshot’ of where you are now financially…so you feel clarity and confidence moving forward in leaps and bounds
- Discover property investing mistakes that you may be making…that are hidden from your view
And much more. I value this call at $295. But it’s yours free because I want to ‘jump-start’ your investing.
The only catch is there are currently only a limited amount of spots available in the coming week…and they will go quick.
Click here to claim your complimentary Property Action Call now….