Many Kiwis want to invest in property. They get excited. Find a property they think will make a good investment. Then they apply to the bank for the money.
What should these NZers do? They still want to get ahead financially and think investing in property is the way to do it for them. But they can’t get a loan to invest. At least, not yet.
Now, over time the amount they can borrow from the bank will increase. Their equity will improve as their house increases in value. And their incomes will rise through inflation and advancing their career at work.
So, if you can’t get a mortgage for an investment property today, perhaps you’ll be ready in 6 years.
But that’s still a long time away. Couldn’t you shortcut the process? Could there be a way to get it down to 1 or even 2 years?
That’s what our playbook can teach you. It gives you real strategies that you can use to get investment ready faster.
That doesn’t mean that you shouldn’t use a mortgage adviser or won’t need one anymore.
In fact, this 8 step process has been designed to be used in conjunction with a mortgage adviser.
At our company, Catalyst Financial, we use this exact process as part of our Investment Ready service.
Investors then put these 8-steps into practice with the help of a mortgage adviser who is trained and experienced at helping investors walk through these steps.
You might think – “you’re about to give me all of your tactics and plays; why would I use a mortgage adviser if I can just take your content and go to the bank myself?”
Some people think they’ll get a cheaper interest rate if they use a mortgage adviser. In their minds, the purpose of a mortgage adviser is to beat the bank down and get the lowest rate.
That used to be the case, but it’s not anymore. In fact, you’ll likely get the same – or a very similar – interest rate whether you use a mortgage adviser or go direct.
The question isn’t so much “bank vs mortgage adviser;” instead, it’s “mortgage adviser vs you.” Who’s got the knowledge and experience to give your mortgage application its best shot?
After reading this guide, you’ll have more knowledge about mortgages than most New Zealanders. But knowledge and experience are two very different things.
A mortgage adviser will look at your application. They’ll then tell you what to do to improve the chance of your mortgage application being approved. They can also tell you what similar investors in your situation have done and what worked for those investors.
A good mortgage adviser will take the mortgage plays you’ll learn about and tell you which ones apply to you. In addition, they’ll recommend the right lender for you.
Compare that to if you go to a bank directly. A Westpac worker won’t tell you to use a non-bank lender, even if that might be the right next move for you.
So, this combination of:
- Working with you to get your mortgage application approved and
- Recommending the best lender to help …
That’s the value of a mortgage adviser, rather than trying to DIY and go to a bank directly.
But that doesn’t mean that everyone should skip the banks and use an adviser. Sometimes if you are a business owner or a high-income earner, you will have a personal banker.
This is someone at the bank that you can call who already knows your personal circumstances and can talk to you about your situation.
So, if you are a very high-income earner ($300,000+) and already have a personal banker, going direct could be a good idea. But, if you earn less than this, or don’t have a personal banker, then a mortgage adviser is the way to go.
You can use the below resources on their own or if you’d like some coaching from one of our Advisers on how to get investment ready then sign up for our Investment Ready Service below.
Here are the resources you can download for free!
The Investment Ready Playbook breaks down the 8 steps that you can follow to get investment ready.
The Investment Ready Spreadsheet is a borrowing tool that gives the ability to forecast your borrowing potential using a 15-year projection.