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.
Case Study: Multiple investment loans refinanced to save $10,000 pa
Marty McDonald
Multiple investment loans refinanced to significantly more competitive rates. Saved over $10,000 pa
Recently you may have heard about the crackdown by the banking regulator APRA on the banks’ lending guidelines and in particular their lending to investors. What has transpired is generally tougher qualifying criteria (all borrowers) and higher interest rates for investment loans.
These changes have now washed through the system and as I predicted 6 months ago the first domino to fall would be lenders competing on price for investor loans again. Low hanging fruit for banking executives looking for growth now that they are within APRA’s guidelines no doubt.
So to my case study….
I was recently approached by a couple that have a handful of properties in Sydney, Qld and WA. They had approached their existing broker who advised they didn’t qualify for a refinance (wrong) and their existing lenders wouldn’t negotiate their rates down any further. They were at that point paying between 4.83% pa and 5.17% pa on total loans of $1,860,000. I was able to refinance all their investment loans onto a rate of 4.37% pa (4.12% after latest RBA rate drop) and 4.20% for their small home loan (3.95% after latest RBA drop). All in all I have saved them over $10,000 pa. That’s after tax money folks.
Moral of the story
A lot of investors and home owners believe that the APRA changes mean they are stuck. Check with me first! You may be pleasantly surprised at what is possible and the savings that can be achieved.
About the Author: Marty McDonald is principal of mortgage broker “Mortgage
Experts”. Marty specialises in assisting active property investors with loan structuring advice and
implementation as well as helping credit worthy borrowers with slightly outside the box income and employment
situations. Find Marty on
Facebook and
LinkedIn.
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