Property Twins | Property Twins™
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The biggest pitfall most property buyers get into is they THINK they need to choose the property first and feel they can just consider the finance piece later.

This is how we have seen this play out:

1. You choose the area and the house first
2. You speak with the bank to consider whether you can even borrow that much – this is like buying a two door car when in fact you need a sedan
3. A formal application is often made with your own bank without research and sometimes this can result in a decline due to various reasons 

These reasons could be due to: 

  • Life / job circumstances changing – and now you’re in probation
  • Your loan is structured such that you can’t borrow as much with this lender 
  • Your lender has restrictions on a certain post code (and there not being a published list!)


Worse, if the loan is approved, you ending up with a structure that doesn’t meet your long term needs.

This can result in a lot of heart ache and cost long term.

What we recommend our clients is….

  1. To protect their credit file and
  2. Set up finance so it enables flexibility so they can address their mid to long term goals, rather than hindering progress

To do this we suggest a 3 STEP APPROACH:

Step #1 Work with your mortgage broker to determine your borrowing power and which lender’s policy does your scenario really fit in? Find out, which lender will be helpful to you in the long term. Not just right now, but in the long term, in line with your long term wealth goals!
Step #2 Ask your broker to determine the suitable loan structure and ask them to organise a pre-approval sorted so you can comfortably go shopping
Step #3 Determine the area & house of your choosing based on your financial circumstances and buy the property you’re after with confidence!

Having been through the journey, we couldn’t emphasise enough the importance of setting up finance correct from the start OR if you have already started the journey, pause and review the current set up so you can maximise opportunities available to you now and in the future.


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Note: Please ensure you always seek specific specific credit, tax, financial, legal or investment advice. Property Twins' Blogs are not a substitute for personal and specific, taxation, financial, legal or investment advice

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