24 Feb 2023
Most seasoned property investors are known for having multiple lenders for their property portfolio. There are a few benefits to not having all the loans with the same lender, which include:
- Competitive interest rates: By shopping around for a new lender each time you get a property, you may be able to secure a better interest rate than if you stick with the same lender.
- Flexibility: Having multiple loans with different lenders can give you more flexibility in terms of repayment. For example, you can use one loan for a short-term investment and another for a long-term investment.
- Diversity: Having loans with different lenders can diversify your risk and also allows you to spread your borrowing power across multiple lenders.
- Product offerings: Different lenders offer different products and services, so by switching lenders, you may be able to access a wider range of products and services that better suit your needs.
- Negotiating power: By shopping around for a new lender each time you get a property, you may be able to negotiate better terms and conditions, such as lower ongoing and upfront fees
It’s important to keep in mind that while there are benefits to having a new lender every time you get a property, there are also risks and drawbacks, such as having multiple credit checks on your credit report which can affect your credit score. It’s important to weigh the benefits against the drawbacks and consult with one of our mortgage broker before making a decision.