David Johnston – The Property Planner’s Golden nugget: Your mortgage and banking strategy will have a profound impact on your cash flow and your financial, property and investment opportunities.
If managed well, it can allow acquisition of assets, superior money management and a stable financial situation. If paid scant attention and you get it wrong, the cost of selling assets, lost tax deductions, an inability to accumulate assets, poor money management, increased interest costs and stress levels can be astronomical.
Determining your mortgage strategy should therefore be priority one. You can always access a great rate after you determine your mortgage strategy, but not every lender will be able to accommodate the strategy that is right for you. And not every person you work with is an expert in mortgage strategy. In fact, most are not.
All mortgage brokers and lenders can access the same rates. There will always be a new lowest rate, and it is not practical to refinance weekly, monthly or even yearly.
It is also impractical to develop a mortgage strategy yourself as it takes years for an experienced mortgage broker to master the skill of mortgage strategy, and they are doing the job full-time. Whereas it takes no mortgage experience to know that 3.8 per cent is lower than 3.81 per cent.
Get your mortgage strategy right first and then select the lender and interest rate.
Peter Koulizos – The Property Professor’s Golden nugget: Offset account is greatest invention of banking and finance since sliced bread.