Financing Through Small Lenders vs The Big Four

Is it time to consider a smaller lender instead of big four? 

If you believe everything you see in the news these days, then its understandable that your opinion of the big four banks has decreased substantially over the last few years.  From the Hayne Royal Commission to not passing on the interest rate cuts to their mortgage customers, many customers are feeling second fiddle to shareholders.  

The time of grinning and bearing it are over, and Big 4 customers now have a staggering array of choices to finance their new investment property (or refinance their existing one).  

Are the big banks really the villains the media is making them out to be?  

Are you better going with a small bank? 

The first thing you need to do is contact your lender to find out how much of Tuesday’s rate cut they are going to pass on to you.  If the answer is less than 0.25%, then you have some thinking to do!  

Only a small number of lenders delivering all of Tuesday’s recent interest rate cut to their customers, so it’s likely that you there is a better deal out there for you.  According to comparison site finder there is a range of 0.59% between the variable interest rates between lenders (ranging from 2.69 – 3.28 %).  

With such a big difference in interest rates, making the wrong choice or sticking with the status quo could be a very expensive mistake.  There are some great offers in the market (particularly targeting new customers) so now is the time to start to think with your feet.  

Todays interest rates are one of many factors you need to consider, which is why many of us can benefit from the experience of a finance broker.  A broker help you look at the big picture and find you a tailored solution that works well with your investment strategy.  

This is a long-term decision that needs to be taken seriously, not a quick fix, band aid option.  Its easy to be fooled by lending gimmicks and media scaremongering.  Enlisting the services of a finance broker, who deals with lenders daily will save time, stress and a lot of money in the long run.  Your broker works for you, not the bank, and should have your best interests at heart.  

Dream Design Property have a skilled, experienced finance team who put you, the customer first.  We have access to an extensive portfolio of lenders and can help ensure you get a loan that suits your needs and investment strategy.  

Whether you are starting your investment journey, refinancing or financing the tenth property in your investment empire, our team can look at the big picture and find a loan that will suit you today and for the future. 

Of course, your investment finance is just one piece of the puzzle that you need to consider.  DDP recognise this, which is why Director, Zaki Ameer has put together a team of experts that can guide you through the entire property investment process and help you take control of your financial future.  

There are not enough hours in the day to learn how to be an expert at everything.  Contact DDP to work with a team that is always in your corner.  We want you to succeed in all areas and our experts can help with your property investment strategy, finance, property research, buyer’s agent services, investment property reports, conveyancing, renovations and property management.  
 

Contact us for a consultation, we would love to make your property investment dreams come true!

julia.h@ddpproperty.com.au