Ep 104: Finding “the Happy Loan”, with Aaron Christie-David

In this episode of the Geared for Growth podcast, Mike is joined by Aaron Christie-David, Managing Director of Atelier Wealth, Author of The Happy Home Loan Handbook and Host of the Australian Property Investment Podcast. Together they discuss the nuances of finding the best home loan, whether for owner-occupiers, first-time investors or portfolio expansion.

In this era of rising interest rates, it’s easy to see why borrowers aim to seek out the lowest rate home loans, often overshadowing other considerations. Aaron challenges this singular focus, advocating for a broader perspective. He shares his rationale with Mike in this thought-provoking episode.

Mike and Aaron explore the serviceability requirements for achieving a multi-property portfolio, offering practical insights for average-income Australians seeking to enhance their borrowing capacity. Aaron sheds light on the finance markets and evaluates the relative risks of second and third tier lenders.

Aaron outlines the qualities of his preferred clientele and delves into the reasons why prioritising higher-value properties isn’t necessarily advantageous in every case. He talks about the psychology of money and shares his own decision to downgrade his car in order to put more money into income producing assets.

Closing the discussion, Aaron imparts valuable tips for investors embarking on their property journey, emphasising the importance of maintaining a positive mindset. This compelling conversation is filled with practical advice and strategies to maximise your borrowing capacity and optimise your property gains.

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In this episode of the Geared for Growth podcast, Mike is joined by Aaron Christie-David, Managing Director of Atelier Wealth, Author of The Happy Home Loan Handbook and Host of the Australian Property Investment Podcast. Together they discuss the nuances of finding the best home loan, whether for owner-occupiers, first-time investors or portfolio expansion.

• Why we shouldn’t just go with the cheapest home loan rate
• Understanding why some assets grow more than others and how that skews the numbers
• Managing your serviceability to build a large portfolio
• First, second and third tier lenders
• Finding ways to unlock borrowing capacity
• The relationship between investors and brokers is a two way street
• Building a property portfolio on an average income
• The psychology of money

“I can tell you right now when you get the loan with the lowest interest rate you’re missing out on borrowing capacity sometimes to the tune of 70 to 80, maybe sometimes $100,000” 2:08

“But you’re doing what a lot of people aren’t willing to do which is why it’s putting you in that .5% ’cause that’s where we’re bringing their portfolio to, so it’s a real mindset shift for a lot of people to go ‘if I want to chase my dreams of building a big portfolio’” 7:10

“We will be surprised people are carrying car leases, giant credit card limits that they’re not using, HECS  balances that we can payout that will then increase borrowing capacity to a good extent as well” 10:42

“Our banking system is incredibly well regulated. I mean there’s a reason why our banks are the most profitable banks in the world, they run a very tight ship and the non-bank lenders are not immune to that, they’re hyper hyper profitable with a very small population, there’s a good amount of governance that goes in there” 12:54

“To have a client that’s organised is a dream, a client that has a vision for where they’re wanting to get to so that allows the broker to kind of go from being a rate chaser to being in an enabler” 18:30

“You’ve got to understand 60% of that industry are solo operators, that’s a lot of heavy lifting for single brokers to do on their own when they’re trying to manage their revenue generating work, revenue protection work with their own existing clients, when everyone’s nipping at their heels and they’re trying to build relationships with partners as well” 20:40

“The one percenters want growth, they’re not going to take no for an answer, they’re going to do what the uncommon are doing, they’re going to find the right team of professionals, they’re the hallmarks” 35:35

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