Are you a professional investor?
Do you have more than $1mil net wealth and/or several properties? Investors may become frustrated with their dealings with bank managers or brokers who do not understand their strategy or appreciate their custom.
At Naritas we have a specialised team of credit advisers who are experts at understanding the needs of multiple property owners and high net worth individuals.
What is the criteria to be classed as a professional property investor or high net wealth individual?
In order to qualify for our High Net Worth Clients package you must:
- Have net assets of over $1,000,000 OR
- Have current loans, or applications to apply, for over $2,000,000 AND
- Have household income in excess of $200,000p.a.
NB: We can make an exception for potential clients with lower assets or loan amounts who have a higher net income.
Who does this suit?
This package is suitable for all high net wealth individuals, however it is specifically useful to:
- Time-poor individuals;
- People with complex trust structures or joint ventures;
- People planning to rapidly grow their property portfolio.
- The advertised pricing is not the best that a bank can offer – as a retail client, you are unlikely to be sure that what they offer is really the best they can offer.
- Additionally, a bank’s ability to offer special pricing will fluctuate, depending on their wholesale funding position. When the bank has too many investors or people with mortgages of more than 80% LVR, they may suspend special pricing for these customer segments. If they do not balance their loan book, wholesale investors will see the bank as a higher risk and the cost of funds for the bank will increase.
- As your mortgage broker, we know exactly which banks offer the most competitive pricing for people like you, with loan amounts like yours. As one of the most successful specialist mortgage brokers in Australia, we are in a great position to negotiate the best interest rates and, in some cases, LMI waivers for you.
Complimentary property data
- Do you pay a subscription fee to RP Data, Residex or Real Estate Investar? We subscribe to various property data services, and can assist you in your investment aims by furnishing you with reports for locations or properties you may have an interest in.
- Armed with this information, you can accurately price properties you may be interested in purchasing, regardless of your familiarity with the location.
Cost-free bank valuations
- Bank have a panel of valuers, and if they order multiple valuations, they must use the lowest valuation, so generally they will only order a single valuation, and in many cases, there are large differences in the valuations obtained by two different banks.
- Having access to several lenders means that we can order free bank valuations before submitting a loan application. This will give you the choice of the lender that has the best valuation for your properties, and allows you to release the maximum equity to fund your future investments, and grow your portfolio faster.
- We believe in playing fair, and while we always want to look after our clients, we will not order bank valuations unless you intended to obtain finance on one of your properties. This is to avoid wasting a bank’s unnecessarily when they have provided us with this service free of charge.
How much do these cost?
- We do not charge extra fees for this service, even though many other specialist brokers may do so.
- Our services are free of charge for most clients. Refer to our fee schedule for a list of services for which a fee is payable.
You will have additional benefits at your disposal in addition to our standard services. Our objective is to:
- Minimise the time you spend on each purchase.
- Provide free access to property reports.
- Provide free bank valuations.
- Maximise your borrowing capacity.
- Completely understand your investment strategy.
- Minimise any miscommunications between your professional advisors.
- Work with local bank branches to provide a holistic service.
- Negotiate specialised pricing for your loans.
- Negotiate policy exceptions based on our reputation as well as your experience, income and asset position.
- Help you to build a relationship with the banks that will support your plans.
Minimise the time you spend on each purchase
- Many investors spend too much of their valuable time managing their investments. Specifically, when acquiring a property, there are steps that must be completed and people who must be involved in ensuring a smooth purchase.
- The main obstacle encountered by most investors is that their accountant, solicitor and mortgage broker do not communicate with each other well, meaning the investor manages their advisors, increasing their work.
- With your consent, we will work directly with your advisors and ensure they are kept apprised of our communications with you. This ensures comprehensive advice from accounting, legal and financial perspectives. We understand that our mortgage recommendations must take into consideration your accountant’s recommendations to minimise your tax liability to achieve the best outcome for your circumstances.
- We are also able to keep your supporting documents and data so that you do not need to spend time collecting documents with each loan application.
Maximise your capacity to borrow
- Your ability to repay loans is assessed differently by different lenders. This is particularly true for investors with several investment properties. Use our ‘How much can I borrow?’ calculator to see how your situation would be assessed by three of our lenders.
- Understanding the methods used by the banks in assessing repayments for your existing mortgages is key to maximising your borrowing power. Some lenders are very conservative with investors making interest-only repayments on their loans.
- We will normally lend as much as possible using a relatively conservative lender if your borrowing power is a concern, before switching to a bank more favourable toward investors.
- We believe in responsible lending, and we will not assist you with borrowing more money than you can afford. We will discuss risk mitigation options if you are close to your borrowing limit.
Learn and work with your investment plans
- Complex investment strategies are generally beyond the experience of most bank managers and mortgage brokers, and they may focus only on the current transaction.
- This approach can cause issues when investors find themselves unable to borrow more money, where their assets are cross-securitised or where they are restricted to their lender. Some investors may even need to refinance their portfolio because their loan structures do not match their investment strategy.
- Our goal is to develop an understanding of your future plans, and make recommendations that are oriented toward your goals. We want you to be in a position of power and able to negotiate better rates and policy exceptions by being free to move between lenders. This will also allow you to expand your portfolio quickly and efficiently.
- All of our brokers have had training in various investment strategy, and many of them have built large property portfolios themselves.
We work with hand in glove with many bank branches
- We have arrangements with a number of bank branches which helps us assist you with other banking services for your personal, business or insurance requirements. We complete the entire job, not just part of it.
- Most credit advisers handle only the mortgage, and most bank managers will only handle products from their line of business which is generally retail or commercial products. By working with branches and commercial divisions of banks we can address all your needs.
Negotiate exceptions to policy
- Some guidelines are inflexible, but banks are often willing to approve exceptions where a strong case is presented, and risk to the bank is mitigated.
- Many of our brokers have experience as credit managers for one of more banks, using their inside experience and knowledge, and high-level contacts to help lenders to use a common sense approach to your circumstances and application.
- In addition, we have Australia’s best mortgage broker, who can assist our senior brokers in complex scenarios that banks generally do not understand or consider.
- For large exceptions to policy, you must borrow less than 80% of the value of your portfolio, avoiding the need for LMI approval.
How do I get assistance with getting approved?
The team at Naritas are experts in delivering timely guidance & finance approvals. We have over 100 lenders on our panel & a high quality team of dedicated advisers to steer you efficiently through the approval process.