Aaron Whybrow explains how to choose a bank and structure your home loan to build equity faster for investment property purchases. He covers interest rates, loan features, and strategies to leverage your primary residence into a rental portfolio.
So we are getting equity out to buy our first, second, third, fourth property out of our own home to be able to afford, top up and get the deposit ready. Hey, it's Aaron from Diagnostics and Finance. Now a common question I get and especially around this time where the interest rates are going down and the serviceability rates are going down, which bank we need to go with to be able to get the right structure of our home loan, our equity splits to be able to go and buy the next investment property. I get the question a lot. Can't we go with the bank that offers the super duper special rate, say 2%? Not that it's 2%. Can't we go with the bank that gives us this or that or what we've been currently banking with? And sometimes the answer is yes we can and we can restructure it with the bank we're with and sometimes the answer is no and we have to move you to another bank to be able to give us the flexibility of one, the policy to get the money out to get you ready for shopping and number two, having enough splits that go goes out and number three, any other features that you may want like an offset account and other ways to manage your bills and things going forward. So it does matter which bank we go to when we're setting up to be able to have your owner occupied property with some splits ready to go to buy the properties that you need. So be mindful that it may not be the sharpest rate, the sharpest tool in the shed. It may be another bank that's fairly stable but has the ability for us to be able to grow and build your wealth. Paying a little bit more sometimes like the 0.1 or 0.05 or 0.2% may actually help you grow more wealth in the future than say trying to battle a bank that is giving us 2% per annum and we are having struggle street trying to get into it and we can't buy the property and it's three months down the track and things like that. So check it out. Getting your equity out is one thing. Putting it with the right, putting your home loan with the right bank for you to be ready and deposit ready to go shopping is another question entirely. If you need help with this reach out. It's Aaron from Diagnostics and Finance. Bye now.
