Are you on the verge of becoming a mortgage prisoner?
It’s a question that might not have even occurred to you before…
…Yet, thousands, if not millions, of Australians are prisoners to their own mortgages.
What does that mean?
It means that they can’t refinance their home loans to access their equity or get a better rate….
They’re trapped with the mortgage they have, which means any dreams of investing in property go out of the window…
You need to avoid that situation and we’re going to help you.
These are the two tips that will help you to never get caught in the mortgage prison.
TIP # 1 – Always Buy Under Market Value
Let’s say you bought a $600,000 property with a $575,000 loan.
After a couple of years’ worth of repayments, you have a valuer look at the home again and they tell you it’s only worth $550,000.
You’re now in the mortgage prison.
No lender’s going to want to help you refinance…
The key to avoiding this situation is to always buy under market value.
That happens to be one of the key value adds in Dashdot’s investment strategy.
When you buy under market value, you create equity from day one.
And in a worst-case scenario, you have a buffer to absorb any negative market movement.
TIP # 2 – Move Away From the Big Banks
It’s obvious why most people go to the major banks for their loans.
They’re the trusted institutions that have name value.
However, they’ve also spent the last few years tightening their home loan criteria.
This is a response to actions from the APRA that aimed to curb lending to investors.
And that can prevent you from refinancing with a major bank.
Look beyond the big players and towards the smaller lenders who aren’t so restrictive.
The first “no” you get isn’t the only answer that you might find…
…Broaden your scope for a lender and you may just escape the mortgage prison.
Of course, finding a high-performance property from the outset is the best way to avoid the mortgage prison.
We can help you.
Take our 15-second application to find out if we’re a good fit for you.