Negotiation 101: What an Investment Finance Broker Asks Mortgage Lenders

Your investment finance broker helps you find a housing loan that is suitable for your lifestyle and financial capabilities. They go over everything with you, from organising the documents you’ll be needing down to explaining your loan carefully and clearly. Probably one of the best things about having an investment finance broker is that they negotiate with mortgage lenders for you.

Here are questions that an investment finance broker would typically ask mortgage lenders:

What are the interest rates on your loans?

Mortgage lenders use your loan of choice and your current credit as the basis for their interest rates. They will also determine your monthly dues with regards to your loan term and mortgage balance. A good tip is to make sure you have no bad credit on any credit card account for you to be able to snag lower interest rates.

Your investment finance broker will check that you are getting a housing loan that is within your budget and you still have money for other necessities and for your savings.

Do you provide loans at a fixed rate?

There are two kinds of rates mortgage lenders may apply to their client’s housing loan rates. The first one is called a fixed rate, where the price of your loan is constant from the moment you signed for it. The second one is called an adjustable rate mortgage, where there may be changes in interest over time. This is highly recommended for those who have plans to move to a new house in the future.

Are there prepayment penalties?

Penalty payments are usually required for residents who are planning to pay their principal mortgage in advance. The rate is determined by the lending company.

With so many things to consider, documents to compile and processes to go through, we should thank investment finance broker for helping us. If you have problems getting a loan, consult an expert for help. Secure your future today by visiting Opal Finance Australia.