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You could miss out on your dream property if you don’t shop around for finance

By Holly Darwon

I was in the city this week meeting with the genius’s at Apple after a midnight altercation between my bedside waterglass and my Mac Book Pro.

Unfortunately the glass of water won and it would need a complete over haul.

So after I was informed to fix it I’d be $1200 lighter I decided to walk back to the office in New Farm and save myself the cab fare.

As I walked home from the city I called Paul Hixon from Loan Market. Paul has been my loan broker for years and I wanted his thoughts on self managed super funds and the decision by some banks to stop lending to them.

I wanted to discuss the potential affect to the market and it’s affect, effect on those buyers. His feedback was that there were still a number of banks and institutions that would continue to lend to SMSFs.

He said Westpac’s announcement through the week, which was what had spurred my curiosity, to pull out of that market was probably only due to their already large lending in that segment of the market.

Paul went on to educate me that this is quite common with lenders and it is why buyers should look at more than one lender when they are looking to buy a property. He said banks will pull out of a market segment, including a suburb or style of property, even a particular unit complex if they felt they already had too many loans in that area.

After hanging up the phone I thought of all the contracts that crash on finance conditions each week and the heartache from buyers, sellers and agents. Many of those buyers could have had their finance rejected from their lender, thinking it was their financial position or their deposit size or even that they’d just made the wrong choice, when potentially it could just be that institutions decision to just not want that particular loan.

Seemingly those buyers could have just gone to another reputable lender with their identical financial profile and received a good loan for that property with no tricks or wizardry.

Now each to their own and if you like your lender then that’s part of the decision too. But checking costs you nothing.

Questioning my own financial decisions, I had just walked for thirty minutes to save $5 on an Uber, I have always recommended buyers chat to an adviser or broker for the best product for your situation.

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