Mortgage broker benefits for property investors post-royal commission revealed

Investors may feel distrusting of home loan products offered by the big four banks following commissioner Kenneth Hayne’s recommendations, released earlier this year.

As such, mortgage brokers are appealing to more and more investors because “the big banks have kind of shut up shop” and become “really restrictive around lending during this royal commission”.

“What we’ve found is that non-bank lenders challenge the banks because they don’t sit on the same APRA restrictions,” Mr Christie-David said.

“We’re seeing some really strong competition from the non-bank lenders who are almost specialising in that investor space as well.”

As well as exploring mortgage products offered by the four major banks, according to Mr Christie-David, property investors could benefit significantly from exploring alternative challenger banks – including second-tier banks, mutual banks and non-bank lenders.

“You just may not have heard of them because they distribute primarily or exclusively through mortgage brokers,” Mr Christie-David said.

“Some brokers specialise in low dock or construction. In our business, we specialise in helping investors, [the] self-employed and SMSFs.”

Home loan products can potentially be utilised by investors as a vehicle towards unencumbered debt, as fuel for a portfolio mix-up to create new wealth, or to maximise gains from their existing investments.

“So, once you get really clear on those niches, you know which policies [and] which banks to go to,” Mr Christie-David said.

“So, I think having a clear, focused, specialised broker will get you much closer to the short list of lenders that you need and the right outcomes that you’re looking for,” he concluded.

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