What Makes Lenders Different
In the last 10 years there has been an EXPLOSION in the number of lenders in the market place and also in the number of products all these lenders offer.
It is important to know how lenders really differ and the issue is that the DO DIFFER IN MAY MANY DIFFERENT WAYS
Interest rates
Lenders have different interest rates – this is clear and obvious because these rates are published and it is easy to see that they are different.
Fees
Lenders have different fees for different events. Some waive fees in certain scenarios – others do not. This is harder to spot because it is harder to understand all the different fees the lenders may have.
How much money they lend
Lenders have different calculation methods for how much money they lend you. Some lenders are more conservative than others – which would not be the right lender for an aggressive property investor.
This is very hard for you to detect and we can assist in this area.
Lender policies
This is a very difficult area. Lenders have lots and lots of differences in this area. Some are big and some are small. Some broad examples may be:
- If and how much they lend on vacant land
- If and how much they lend on certain rural postcodes
- If and how much they lend on inner-city postcodes
- If and how much they lend on certain size units or studios
- Some lenders will need to see you earn bonuses over a 2 year period
This is just a start
Lenders mortgage insurers
Lenders use different mortgage insurance companies – these insurance companies ALSO have differences in
Cost of insurance
How much debt they will insure
Many policy differences
To make it even more difficult – the situation may exist where the same insurance company has different policies with different lenders.
