Finding the right solution

Before a broker can put an investor into a particular product, however, or offer them access to an innovative service provided by one of the lenders, it is crucial for them to know which type of investor they are dealing with.

Is the investor tech-savvy and maybe on the lookout for iPad and iPhone apps that can help them build their property portfolio?

Perhaps they are a seasoned investor, very familiar with the property market and looking for a lender that can turn their deal around quickly and painlessly.

Whatever the situation, brokers will find products and services out there that will effectively cater to investors, regardless of their needs.

A new age

The Commonwealth Bank of Australia (CBA) has long been a supporter of the investor market and so it is no surprise to see this lender leading the way when it comes to investor innovation.

Recently, the lender launched its ‘Investorville’ initiative.

According to the bank, this online simulator combines real market insights from RP Data with web-based technology and economic modelling to provide borrowers with real-time experience and exposure to the decisions they have to consider when choosing an investment property to buy and manage.

Investorville allows customers to try their hand at investing in the home loan market without having to use any of their equity – a ‘try before they buy’ approach. The game provides a fast and intuitive experience that aims to break down common misconceptions about investing.

Best of all, the tool is available to all potential property investors, not just customers of CBA, giving brokers the opportunity to establish a strong relationship with potential clients right from the outset.

Investorville, however, is not the only ‘investor-centric’ initiative that CBA has introduced; the bank has also developed a Property Guide app.

While most lenders offer a similar app of some description, CBA was the first to launch one in this area.

CommBank’s Property Guide app uses augmented reality technology to map rich data onto a real world view through an iPhone's camera when the investor points it at a property.

The Property Guide app is user-friendly, available on demand and free.

Users are provided with a variety of information, such as past sales history, recent sales and current property listings, access to CBA tools, calculators, home buying guides and videos, and the ability to contact a Commonwealth Bank lender – all from the palm of their hand.

For those investors who want more comprehensive suburb insights, the Property Guide provides data by suburb which includes prices, demographics, capital growth and rental yield.

CBA’s executive general manager, third party and mobile banking, Kathy Cummings adds that CBA’s more recent technology releases include an RP Data Automated Value Guide.

“This takes a multitude of statistical market data and provides an estimated price range for 80 per cent of the residential properties in Australia,” Ms Cummings explains.

“CommBank’s Property Guide app is useful to anyone buying or selling a home, or simply looking to keep on top of the property market as it provides augmented reality insights into almost any Australian home, anytime, anywhere.

“Investors can benefit through utilising this application whenever it is convenient to them, whether they stumble across a property on the way to work or when they’re attending property inspections.

“The application provides them with insider knowledge of the property’s sale history, the value of surrounding properties and if they want to place an offer it can connect you through to a lender to get the application process started.”

The perfect loan

In addition to providing a variety of initiatives specifically for investors, CBA also tailors its home loan products to meet the needs of the investor market.

“CBA continues to focus on growing our investor segment and in the last year we have unveiled a new No Fee Home Loan product lowering costs and providing extra security for our investors,” Ms Cummings says.

CBA’s No Fee Variable Rate Home Loan boasts an interest rate of 5.7 per cent and no bank fees for the entire life of the loan.

In addition, the No Fee Home Loan comes with a transaction account that has no monthly account keeping fees, and a credit card with no annual fees for the life of the loan.

The loan also comes with a range of flexible features, including unlimited extra repayments and redraw, principal and interest or interest-only repayments, and a choice of repayment frequencies

Then there is CBA’s Standard Variable Rate Home Loan, which is said to be well suited to investors as the variety of flexible features ensures that they can manage their home loan in a way that suits them.

Under the conditions of the SVR, investors can make unlimited extra repayments, redraw special repayments and ask for a 100 per cent interest offset account.

For those who want a bit more rate stability, however, CBA also offer a Fixed Rate Home Loan that gives investors the ability to set their repayments for a fixed period of time.

Of course, if those loans don’t cater to an investor’s needs, CBA also offer a Line of Credit (LOC) Home Loan, which is a contemporary solution for investors who are comfortable with managing their own debt reduction program.

LOC is a flexible system that allows the customer to consolidate their financial affairs and use the equity in their home to build wealth.

With this loan, investors have the freedom to withdraw the cash they have paid in.

In addition, there is no set principal repayment requirement, so investors can repay as much or as little as they like, as long as interest, fees and charges are met on a monthly basis.

Finally, CBA also offers investors the Mortgage Advantage Package.

This package was originally designed to reward customers for banking with CBA, offering them significant savings on borrowing, everyday banking and insurance services.

Customers receive discounted interest rates on home and personal loans, discounts on insurance products, waiving of transaction account and monthly account keeping fees and waiving annual credit card fees on eligible products.

This saves investors money and also makes their banking more convenient.