What our clients are saying

    "Marty was fantastic! We swore never to use a broker again after bad experiences with other brokers in the past, and our last loan we negotiated ourselves, however this time we needed a mortgage... " – Blake Millgate
    "It is impossible to exaggerate how highly I rate Mortgage Experts and my experience with Marty McDonald... " – Brendan Arlington
    "Mortgage Experts have provided a fantastic experience in an area that can be complicated and emotional. Marty was always clear and precise and always made time to discuss the matters at hand... " – Brett Parker
    "I was really impressed with Marty's services. He was responsive to emails and calls, considered a range of options, and kept me informed at every stage. He was also very patient... " – Elise Darsow
    "Marty was great to deal with. From initial contact to finding a perfect solution and strategy to our situation to then securing the funding in a tight time frame nothing was too much trouble... " – Nick and Blaise Porter
    "Great service! All the advice I've received in the past has been really helpful. Love the newsletters which keep me updated on developments in the market. Highly recommended! " – Nick Jolly
    "I have used Marty's mortgage brokerage service (Mortgage Experts). He has been professional, resourceful, gone beyond the call of duty in servicing my mortgage. He has been able to... " – Prithvi Moses
    "We’re both really happy to have been able to get this sale across the line and are particularly grateful for you finding us a way to make the finance work! Walking into our new home... " – Sarah Macdonald & Stewart Bovell
    "We found Marty McDonald from Mortgage Experts through a Google search because he had a hugely informative page about family trust loans. Choosing Marty as our broker was a huge blessing... " – Tracey Cools

PROPERTY INVESTORS

We specialise in assisting property investors with their loan needs.

In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible. 

We don’t just focus on the transaction right in front of us. With all clients we really try to get to understand their future goals and the likely use of their properties in the future. This helps us map out a credit plan for their property investing future. 

If you are facing any of the below issues feel free to give Mortgage Experts a call on 1300 711 054 or go to the online enquiry form.

Common property investor problems and how we can help

1. Incorrectly structured loans - All loans & properties tied together

By far and away the most serious of problems property investors face is their over reliance on one lender and the tendency for their lenders to tie up all of a client’s loans and properties via cross collateralisation. It seems so easy and simple to set up your loans this way but it can stop further property investment plans in their tracks and more importantly it can be downright dangerous.

Most seasoned property investors come to realise this AFTER they have hit a roadblock with their lender and realise it is not a good idea to give the lender all the power in the relationship. While this is usually just temporary annoyance the real threat from crossing properties is if something were to go wrong in your personal life (job loss, sickness, divorce etc) and you needed to convert equity to cash by selling one or more properties while you recovered.

It is then that you are then at the mercy of the lenders polices and their valuers estimates of your remaining security properties and this usually happens at a time when you are at your most vulnerable / least able to take your business elsewhere.

It is not uncommon for lenders to take 100% of net sale proceeds from a properties sale in order to reduce a borrowers other remaining loans. But the whole intention of selling was to keep some of the surplus funds while recovering from the mishap in the borrower’s life. Sadly the lender is trying to reduce their risk by doing this but we have seen this be the catalyst for a complete melt down of a couple’s financial position which led to their ultimate bankruptcy and the loss of the family home and we might add a major headache for the lender. If the lender inquestion had allowed just $50,000 of the net proceeds of the property sale (over $300,000) to be released to the borrowers the whole catastrophe would have been avoided.

Solution:

You can make you investing life so much easier for yourself if you take this advice…. don’t cross collateralise if you can help it. If a loan will work with two or more properties being crossed together then it can also be done as a stand-alone facility. More on this at loan structuring advice.

2. Difficulty accessing equity

Are you having difficulty in accessing equity? Often property investors are held back by their lenders due to not being allowed to access their equity to keep investing. If your loans are tied together via cross collateralisation, gaining access to your equity can be blocked by your lender for any numbers of reasons. They could consider your overall LVR too high; they could say we don’t think you can service any more debt or they might just say you are becoming overly rent reliant. Like that’s a bad thing!

Solution:

The simple solution is to not have all your property tied together with the one lender or if with the same lender make sure the properties are set up as stand-alone facilities. As a general rule of thumb for property investors with large portfolios or intending to have large portfolios we like to keep a maximum of $1,000,000 in loans with any one particular lender. 

3. Overcoming lender servicing issues
       
This is probably the most common issue property investors face. Lenders (and brokers) have to be conservative to some degree in what they deem as an acceptable level of debt for any borrower. The tricky part is all lenders have servicing models which at every turn add a buffer here and a reduction there so in the end a neutrally geared portfolio can be deemed to be a high debt load.

Luckily not all lenders view things the same way. For example we have lenders who will allow negative gearing benefits to be used to increase borrowing capacity and some that will accept 100% of rental income (rather than the usual 80%). We have lenders who will assess other lenders debts at the actual repayment rather than adding a buffer to the interest rate and calculating repayments on a principal and interest basis when the loan in question has interest only repayments.

While we don’t advocate stretching things to their absolute maximum we do feel that lenders are often too conservative with property investors who have multiple properties and loans.

The difference between how much one lender will lend and how much another one will can vary by as much as a factor of 2 to 1 in certain scenarios. Generally the more property investments you have the greater the difference can be.

Solution:

It is vital to plan ahead and to map out a likely sequence of property acquisitions, consequent loans and thus which lenders should be used in which order. This isn’t a perfect science as lenders servicing models do change and over time interest rates, rental income and your personal income will no doubt change too but having a broad plan is much better than attempting to achieve your property investment goals with no thought to how it will unfold.

4. Property investors with complex loan structures – hassles with loan approvals

Loans in the names of companies, family trusts, unit trust, hybrid trusts, smsf trusts and property investment trusts can all cause headaches depending on the lender chosen.

Solution:

Before you jump into a complex structure make sure you have explored the lending options first. There is no point having these structures if it restricts you from borrowing further.

Our Current Lender Panel

Lex Luther Enterprises Pty Ltd (ABN 58114636949) trading as “Mortgage Experts” is an Authorised Credit Representative (444479) of Martin Warren Thomas McDonald, Australian Credit Licence (391230) under s64(1) of the National Consumer Protection Act 2009.