Make sure you Plan!
Saturday, December 16, 2006
Strategy is Important!
If you are a property investor, it is important that your lending structure is well thought out.
Mortgage Insurance or LMI applies to most loans with less than a 20% deposit. The trouble with mortgage insured loans though is that they will only allow a certain amount of ‘exposure’ to each borrower. The amound depends on the insurer, and the borrower.
Let’s say you have two properties, both with loans that use the same mortgage insurer. If you are looking at another property, that Mortgage Insurer may not lend you any more regarless of whether you service for the loan - because you are 'over exposed'.
There are two main main Mortgage Insurers in Australia – GE and PMI. You will then need to choose a lender that uses a different insurer.
By developing a lending strategy from the outset, you can avoid overexposure with lenders and ensure that your future borrowing will not be hampered in any way. To do this effectively, it is essential that you use a Mortgage/Finance Broker that has access to several lenders and is aware of which mortgage insurers they use.
posted by Daniel Serratore @ 11:01 pm,
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The Author
Daniel Serratore
Daniel is heading up the new generation of Finance Brokers in Sydney. With his fresh approach and "can do" attitude, Daniel has developed relationships with key people within the Sydney lending market which enables him to source great deals for his clients. Daniel is big on customer service and has built his business purely by referrals from clients and other businesses. You can catch him via the email link on the top of this page
About This Blog
This blog was developed as a resource for our clients and the general public. Although the internet will provide you with many lending providers, I am still to find a resource that shares ideas, tips and general useful info to assist borrowers make the right decisions. Hence this blog was born!
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