83% of investors intend to use a mortgage broker for their next loan

Tighter lending restrictions are driving more property investors to seek assistance from a mortgage broker, a new survey has found.

The third annual Property Investor Sentiment Survey by Property Investment Professionals of Australia (PIPA) revealed that 73% of investors have used a mortgage broker. This was up from 65% two years earlier.

The report also found that over the next 12 months, 83% of investors intend to use a mortgage broker when seeking their next loan – an increase from the 71% recorded in last year’s survey.

While lending restrictions may have removed some speculation out of the market, they are preventing investors from building their financial futures and adding to rental supply, PIPA chair Ben Kingsley said.

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“Our survey results show that rather than be defeated, educated property investors are opting to use professionals to assist them to achieve their goals – regardless of the lending environment.”

Other key statistics from the PIPA survey include:

  • 68% of investors think that higher interest rates for investors compared to owner occupiers is unfair
  • 38% of investors had no difficulty in refinancing despite tighter standards
  • 22% of investors said they are having difficulty refinancing
  • 30% of investors have either switched or intend to switch from interest-only to principal and interest given higher rates

The survey polled results from more than 740 property investors around Australia.

Original article published by Australian Broker

Why use a mortgage broker?

Think of a mortgage broker as a personal shopper. Rather than a customer going to every lender to find out the best interest rate, compare each of their products and then prepare all the paperwork, a mortgage broker does all the hard work for you. They will assess all the home loan options that are suitable to your immediate and future needs and provide the findings in a concise and easy to understand way.

The mortgage broker then negotiates with the lender on your behalf to secure the best interest rate and conditions. They will also ensure that the loan conditions and interest rate is reviewed regularly throughout the life of the loan to ensure the customer continues to get the best rate.

The greatest benefit to using a mortgage broker is the customer can access their years of experience and knowledge of lender policies and credit approval processes, to ensure the customer has the best chance of approval. They will also go in to battle if a property valuation comes in low or the lender wants to increase fees to mitigate risk issues. A mortgage broker can save a customer money on their loan as they can leverage their relationships with the banks and 2nd tier lenders to get discounts for the customer.

And the best thing of all, mortgage brokers like Mint Equity are free to use as they are remunerated by the lender once the loan reaches settlement. 

To learn more about how Mint Equity can help, contact us on 02 4340 4847.