Opes Mortgages vs other mortgage brokers – What’s the difference?

If you’re using Opes to find an investment property, you might consider using Opes Mortgages.

You might be thinking, “Should I use Opes Mortgages, or a different mortgage broker?”

You might also wonder: “What’s the difference between Opes Mortgages and other brokers? Aren’t they all the same?”

These are great questions and important ones, too.

Here at Opes, we believe in being as honest and transparent as possible. That’s why in this article, you’ll learn the 6 differences between Opes Mortgages and other advisers.

That way you can decide if we are a good fit for you (or not).

Difference #1 – Specialists in New Build Investment Properties

The main difference is that we specialise in working with property investors. And we really specialise in New Build investment properties.

Because we primarily work on New Builds, we’ve figured out what can go wrong (and how to fix it). 

That’s why we take specific steps that not all mortgage advisers do (or know about).

If you’re buying a New Build investment property, we are probably a good fit for you.

If you’re a first home buyer, we can help you, but that’s not our primary focus.

Difference #2 – We want you to use split banking

Split banking is where you use multiple banks rather than just using one.

Not all mortgage advisers like split banking.

It can be a bit more work to set up, and it means you need to fill out a bit more paperwork. 

But it can also help you build your portfolio faster (especially if you invest in New Builds) and gives you more control over your money.

This is why we’ll encourage you to split bank. But, not all advisers do.

This is because we’re not just thinking about this mortgage. Since we focus on investors, we’re also thinking about how to get you the next mortgage too.

Difference #3 – We’ll push for pre-allocated titles to lower the risk

This is where we get into a few nerdy technical differences.

One of the big risks in buying a New Build is getting the finance.

You sign a contract to buy a property. Then, in some cases, you wait to apply for finance until the property is built.

If the property falls in value, it can make it harder to get money from the bank.

That’s where some investors get stuck. They have to pay for the property. They signed a contract. But, they can’t get money from the bank since the property market has changed.

That’s where pre-allocated titles come in. And a lot of mortgage advisers don’t know about these.

This is where your lawyers get you the legal description of the property (the title) much earlier than usual.

This means we can lock in the mortgage earlier in the process. We document the loan with the bank, which decreases the risk and the bank can’t pull out.

This protects you if house prices go down. This is nerdy and technical (but so important).

Difference #4 – Upfront valuations that could save you thousands

Another “trick” with New Builds is to get a property valuation before it’s built. This lowers your risk.

As mentioned, if you sign up to buy a New Build off-the-plans and it falls in value, that can cause issues with the bank.

What’s the risk? You could lose the deposit you paid the developer, which often amounts to tens of thousands of dollars.

That’s why we often get investors to order the valuation when they first sign the contract.

That way, even if the property falls in value, the bank will use the valuation you got at the start.

It can cost an extra $250 (or so) because you also need to get a completion certificate, but we follow this process because it can save you thousands in the long run and will remove a risk.

Again, not all mortgage advisers do this, but because we specialise in New Build mortgages, this is more standard practice for us.

Difference #5 – Getting the deposit early to protect against legal action later

Here’s another example of where New Build mortgages need more care.

Let’s take Bob and Kathy as an example. They want to buy a New-Build property and have decided to split bank.

They plan to borrow the deposit against their own home.

To buy this New Build, Bob and Kathy will pay their deposit in two parts (this is standard) –

1. 10% construction deposit, paid when they go unconditional. This goes to the developer’s lawyer.
2. Another 10% is paid at settlement once the property is built.

Together, those make up the 20% deposit Bob and Kathy need for the New Build.

They sign the contract and go to their mortgage adviser, ABC Mortgages.

ABC Mortgages organises that first 10% deposit against Bob and Kathy’s home.

Then they say they’ll organise the other 10% once the property is built. Lots of mortgage advisers do it this way.

But here’s where things can go wrong.

While the property is being built, house prices start to fall.

When Bob and Kathy go back to ABC Mortgages to get the other 10% deposit, what happens?

Their own home has gone down in value and the bank won’t lend that extra 10%.

That means Bob and Kathy can’t get all the money for the property, so they may lose their initial 10% deposit.

Again, that could cost them tens of thousands of dollars.

This wouldn’t be an issue if the mortgage adviser organised the full 20% deposit at the start.

Because we specialise in New Builds, here at Opes Mortgages, we now get the full 20% at the start.

It protects you and lowers the risk of buying an off-the-plans property.

Difference #6 – Better communication between your advisers

Often you’ll have several advisers who work for different companies.

This can cause communication issues between your advisers.

When I worked at another firm, I once received a call from another company that organised the property for a client. They said, “We’re expecting CCC (Code Compliance Certificate) in 3 to 4 months.”

That meant I had a lot of time to organise the mortgage.

However, the CCC was sent through the next week, and we had to sort out the mortgage in five working days.

That caused stress for the investor. There was a lot of frantic rushing around and it wasn’t a good experience for the client.

With Opes Mortgages, your:

• financial adviser (Property Partner),
• mortgage adviser,
• property manager,
• insurance adviser, and
• accountant

Can all work from the same company.

That makes it easier for you. But it also means we can talk with each other and know who needs to do what and when.

This can make it a better experience for you as the investor.

Should I use Opes Mortgages?

Not everyone should use Opes Mortgages. In fact, some people may be better off using another company.

That’s because we focus on investors. That’s our area of expertise and primary client base.

We do a lot of mortgages for New Builds bought off-the-plans.

If you are an investor buying a New Build turnkey property off the plans, we are likely to be an excellent fit for you.

Our experience means we’ve built processes to decrease the risk and make the whole process better and easier for you.