In this episode of Talk Property To Me, you'll dive into the complexities of borrowing for property investment with guest Toby Woodroffe, an experienced mortgage broker. He shares insights on the importance of seeking expert guidance when navigating the lending landscape, drawing from his professional experience to emphasize the potential pitfalls of attempting to navigate the lending process alone. The conversation touches on securing lending for multiple investment properties, banks' strategies, and the significance of establishing relationships with knowledgeable local mortgage brokers. Woodroffe's expertise and practical advice provide a credible basis for listeners seeking to invest in property, highlighting the value of professional guidance and long-term support. Whether you're a homebuyer or property investor, tuning in to this episode will arm you with valuable insights to make informed decisions and effectively navigate the lending landscape.

Timestamped summary of this episode:

00:00:02 - The Role of Mortgage Brokers

Brad and Toby discuss the value of mortgage brokers and why they are essential in the home loan process. Toby debunks misconceptions about broker income and fees.

00:03:37 - Banks' Profit Margins and Mortgage Brokers

Toby explains how the decreasing net interest margins of banks are linked to the increasing market share of mortgage brokers. This relationship sheds light on why banks may view brokers as a threat.

00:10:51 - Best Interest Duty and Broker Expertise

The conversation delves into the best interest duty legislation and how brokers are required to act in the best interest of their clients. The expertise and access to multiple lenders make brokers a valuable resource for borrowers.

00:13:25 - Broker Commission and Client Benefits

Brad emphasizes that brokers do not charge clients and are compensated through commissions from lenders. The discussion highlights the importance of expert advice and access to a wide range of options for borrowers.

00:14:21 - The Role of Mortgage Brokers

Toby emphasizes the value of mortgage brokers in navigating complex lending processes, highlighting their ability to secure the best outcomes, especially in the investing space.

00:15:13 - Risks of Directly Approaching Banks

Toby discusses the potential pitfalls of directly approaching banks for property investment loans, including cross collateralization and the limitations it poses on future property acquisitions.

00:16:26 - Importance of Seeking Professional Advice

Toby advises against relying solely on media and encourages seeking advice from reputable local mortgage brokers to avoid costly mistakes and ensure long-term positive relationships.

00:16:53 - Lack of Bank Support

Toby highlights the lack of ongoing support from banks after loan approval and the importance of having access to professional guidance for navigating the complexities of the property market.

00:17:29 - Conclusion and Call to Action

Brad and Toby sign off, urging listeners to engage in the social media community and seek professional advice for any property-related questions or concerns.

ABOUT THE HOST

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/

Instagram → https://www.instagram.com/bradeast_mortgagebroker/

Facebook → https://www.facebook.com/bradeastofficial