How close are you to your mortgage broker or finance specialist?
If you are thinking of buying a home, adding to your property portfolio or about to embark on your first investment property purchase, it is time to get to know a competent finance professional. Your finance can make or break you, It is as important as location is to your property choice.
There is little doubt that we are in the midst of a credit squeeze. Banks and other lending institutions have tightened their assessment criteria for new loans and refinance across the board. It is now much harder for Mortgage Brokers to get approvals for Low Doc and No Doc loans. Some lenders have stopped taking applications for No Doc loans altogether and many have reduced the maximum LVR for Low Doc loans down to around 65%. Even full disclosure (Full Doc) loans are being scrutinized more thoroughly. So it is harder to get new money and generally you will be paying more for it.
My advice for owner occupiers and current/prospective property investors is to renew your friendship with your mortgage broker or find a new one. Invite them around for a cup of coffee and have them bring you up to date with how the current lending environment effects your situation. Get close to them, make yourself their favourite customer so they will give you the good service and advice you need and deserve. Remember, the finance is as important as the property you purchase with it.