Mortgage Minute – Split Bank Apprach

TRANSCRIPTION

Split Bank Approach for Property Investing

When you’ve got an investment property, sometimes the bank will say that interest rates are going to be higher. And you really should know that some banks will penalize you based on the securities you bring them, whether they are investment properties or not, with higher interest rates and less favorable terms. Maybe the terms are reduced or you don’t get as big of cashbacks. What you should know is some banks are giving you the same rates for your family home as your investment property which can be a huge advantage and save you a lot of money.

And what a lot of property investors especially are doing is using a split bank approach to really make sure that you’re getting the best deal every time. You’ve got to find the bank products and the bank that works for you, but if you can save your money by getting the better-negotiated interest rates, especially for an investment properties, and taking advantage of interest-only lending when you really do want it, yeah, you’ve really got to know that interest rates are negotiable, and for investment properties, you don’t always have to pay more and you’ve got to be aware that some banks will charge more for them.