Which Bank Is Best For Investors? | Ep. 130

In this episode, we are joined by Eugene Bartsaikin from Twine Financial Advisers. Eugene is a lending specialist and helps investors structure their lending and financial lives to achieve their goals. 

During the show, we discuss that banks don't treat investors differently.  When banks lend to investors they are required by the Reserve Bank to hold on to more capital than owner-occupiers. This means that there is an additional cost to banks by lending to investors.

That's why some banks pass on that additional cost in the form of higher interest rates to investors. But, not all banks pass on this cost. Specifically, ANZ and TSB do not charge investors higher interest rates ... in essence, they absorb that extra charge (at the time of writing).

Now, that doesn't mean that you should always put your loans with ANZ or TSB, becuase these rates are negotiable (and those banks may not be in the position to lend to you at the time of your application). That's why it's important to have a good mortgage broker who can negotiate down the additional margin when working with a bank that does pass on that margin. 

Throughout the show we also referenced the Epic Guide to Mortgages, our 9,500 word guide that teaches you both how to get and then pay down a mortgage.