Over the last month or so, we have noticed that there has been an increase in activity with more investors referring properties for management.
After discussing this with them, they mentioned that their recent experiences with the banks has been easier and not as arduous in terms of the amount of information that has been requested by the banks (as previously has been the case) during the application process.
They also mentioned that the experience has been even richer when they recruited mortgage brokers to act for them in securing finance for their property purchases.
In one case, a client approached two banks (6 weeks ago) directly and found them rather tedious to deal with and after 8 days still had no decision. They then moved to a mortgage broker, and by the following day not only had an approval to buy two properties (they were expecting approval for one) BUT . . . they were also given 85% approval, not the 80% or 70% as was the case with the banks directly.
However, we have since learnt that two banks in particular have been extraordinarily keen to develop their investor base and are now easing their criteria somewhat. Another RER Property Management client secured finance at 90% for their investment property, and a first home buyer secured 95% finance so it seems that with increase in sunshine and heat, banks too are warming to the market . . . finally.
If you find that you are having difficulty with securing finance at present, please contact one of the RER Property Management team and we will pass details on to you of some very successful brokers that we have had the pleasure to work with.