BOQ General Manager, Broker, Kathy Cummings shares important things to keep in mind
When it comes to assisting property investors with finance, there are some important things brokers should keep in mind in order to ensure their investor clients are set up properly. MPA spoke with Bank of Queensland (BOQ) general manager, broker, Kathy Cummings about the most important things brokers should consider.
Acting in the client’s best interests
Brokers play an important role when it comes to helping property investors with finance. Whether the client is a first time “mum and dad investor” or a savvy investor looking to grow a portfolio, brokers are able to structure a client’s loan to suit their long-term goals and objectives. Cummings said brokers are able to do this because they are well-positioned to be aware of all the variables involved, such as the client’s timeline and how well the products and policies of multiple lenders fit within this.
“It’s not always about best rates, sometimes it’s about how fast they need to settle the property, it’s about the credit policies, it’s about the debt-to-income ratios involved,” she said. “These considerations are more important for a property investor than a first-home-buyer, particularly the more properties they have.”
Since a broker can’t offer financial advice, it is essential the client discusses their plans with a qualified accountant, she added. Then it is a matter of looking at how the client will finance the purchase, whether they would like to cross-collateralise with existing properties, and for portfolio building investors, whether they would like to borrow from one lender or multiple lenders.
Forward horizons
Cummings said the client’s long-term goals are one of the most important things brokers should consider when structuring lending to suit their needs.
“Property’s not like the stock market where you can buy today and sell tomorrow, it is a longer-term investment and you really need to understand the long-term goals of your client,” she said. “You need to understand their current financial position, their level of commitment, their life stage, their family life stage - all those types of things.”
She added that BOQ supported brokers by providing exceptional products and associated services, as well as through its team of responsive and knowledgeable relationship managers and credit managers.
Read more: The BOQ and broker partnership
“A lot of investment is about structure,” she said. “We have the tools available to help them do their business.
“For us, it’s about having a product and prices that are competitive, service levels that are responsive and a team of people they can talk to. It’s important to make sure your team is very contactable and can provide support and assistance where required.”
She also pointed to BOQ’s broker portal, which offers the ability for brokers to submit tailored pricing requests, as well as its retention letter service, which helps brokers stay on top of their client’s situation as their loans roll over.
“We are also doing regular webinars and keeping our training up to date,” said Cummings. “And we’re working on how quickly we can get back out there in the field to support brokers through professional development days.”
Credit provided by Bank of Queensland Limited ABN 32 009 656 740 AFSL and Australian Credit Licence no. 244616 (BOQ). Conditions, criteria and fees apply. BOQ’s standard credit assessment criteria apply. All information in this article is of a general nature only. It may or may not be correct, depending on individual circumstances. You should not rely on this information as being correct for you, and you should obtain your own financial, legal and taxation advice as appropriate.
