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Are you searching for a suitable home equity loan in Australia? Let us help you to secure your ideal Home Equity Loan. Please contact us through www.mortgagechoice.com.au/anthony.smith or +61 3 95857779. We do not charge clients for our loan finder service.
  INSIDE  ã Living with your home loan ã Lenders mortgage insurance ã Tips and tricks to save a deposit It’s the start of a bright, bold andhappy new year - and perched atthe top of your New Year’sResolutions list is your goal of  becoming a property investor.But where do you begin? Thereare many aspects to consider.Research, research, research.  Be sure to read as much as you canabout investing in property, includingindustry magazines, property and/orinvestment columns, radio programs,TV shows and reputable property andinvestment websites. You may alsolike to consider attending seminarsheld by reputable organisations and nancial services businesses that are licensed in Australia. Be sure to add books written by licensed Australianadvisors to your list, too. Do your sums and seek advice. Find out whether you can truly affordto make the investment. Consult with  your nancial advisor and talk to your accountant to determine whether youcan afford mortgage repayments,factoring in interest rates, taxes, andclarifying whether it is likely to affect any social security payments or benefts. Determine your strategy.   There are many ways to invest and you   may not want to put away all your spare   cash into superannuation, for example.  Work out your personal motivations.    What are your personal goals in life? What will ultimately bring yousatisfaction and contentment? What your friends, family or peers want forthemselves does not necessarily apply to you. Consider what you want to achieve nancially over a period of time – whether that’s a ve year, ten  year, or twenty year period and so on.It is also an idea to consider what yourcomfort zone truly is, in regards tohow long you want to invest themoney for and when you ultimately  want to reap the rewards from yourinvestment strategy. Continued on p2... Summer / Autumn 2008 Newsletter    A   w  a r d e d t o   M o r t gage Choic e  b y   A ust ralian Bank ing and F i n a n c e   M a g a z i n e Invest today for a better tomorrow Did you know that up to 60 different areas of the law could makethe difference to the purchase of your property? A solicitor or conveyancer will help you understand the legalobligations of the purchase of property and advise you on anymodications to the contract to ensure your needs are met. Even if  you believe it’s a standard contract it’s wise to discuss it in detail toensure you understand the commitment you are making and themeaning of the more technical terms that may be used. During the course of the purchase, the solicitor or conveyancerwill assist you with: ã   Conducting extensive searches into the land title, developmentplans, council zoning, and any restrictions and ownershipinterests on the property ã   Ensuring the transfer of ownership to you stays on track and assist  with ensuring that both sides of the party full their obligations If you are purchasing an apartment, your solicitor or conveyancer  will also review the strata minutes, which will provide informationregarding noted building structural issues, the Body Corporate,common area problems and any noted trouble with neighbours. ENSURE PEACE OF MIND WITH YOUR NEW HOME PURCHASE  Wishing you peace, happinessand prosperity for 2008.  As we begin the new year, Mortgage  Choice would like to say a special thank  you to all our clients, friends, family and business partners for your supportduring 2007.It’s also time to look ahead to thepromise and opportunities of theupcoming year.  With 2007 being a year lled with multiple interest rate rises, it’s important to be aware of your current nancial situation to ensure that you are preparedfor the year ahead and will achieve the nancial goals that you aspire to. Mortgage Choice Limited 302 Charman Road CHELTENHAM VIC 3192 Phone 03 9585 7779Fax 03 8610 0365 www.mortgagechoice.com.au/cheltenham1This franchise is independently owned andoperated by The Finassist Partnership ABN 51 426 348 068 Anthony Smith Ph:9585 7779Fax:8610 0365Mob:0413 439 761 anthony.smith@mortgagechoice.com.au Gary Mackertichian Ph:9585 7779Fax:8610 0365Mob:0418 155 565  gary.mackertichian@ mortgagechoice.com.au Mark Boulton Ph:03 9533 5340Fax:03 8611 7915Mob:0403 047 147 mark.boulton@mortgagechoice.com.au Chris Howitt Ph:9333 4370Fax:9333 4376Mob:0401 334 599 chris.howitt@mortgagechoice.com.au Craig Micallef  Ph:9308 9163Fax:9308 9257Mob:0417 655 577 craig.micallef@mortgagechoice.com.au Stephen Forrester Ph:03 9773 3438Fax:03 8610 0365 Mob:0409 250 347 stephen.forrester@mortgagechoice.com.au Jill O’Connor Ph:9585 7779Fax:8610 0365   Mob:0412 647 506  jill.oconnor@mortgagechoice.com.au Mitch Jones Ph:03 9773 3438Fax:8610 0365Mob:0412 881 907 mitch.jones@mortgagechoice.com.au NEWS FROMMORTGAGE CHOICE  ...continued from p1 Think about the type of investment  you are looking for, too.  Do you want what’s known as an‘income’   investment (a type of investment that gives you an incomefrom earning interest but generally has little or no capital growth) or a‘growth’ investment, which, as well asearning you income, increases the value of your srcinal investment. Know your market. Find out everything you can aboutthe area in which you intend topurchase. Are prices increasing,decreasing or stagnating? Are thereany major infrastructure projectsplanned in the area? What are theaverage prices like? While weighing upthe pros and cons behind yourdecision, seek an independentevaluation that includes all recentcomparable sales and rentals in thelocal area. Is the value of yourproperty likely to increase over time?Seek an independent evaluation. Secure your paperwork. Get into the habit of keeping yourpaperwork in good order – contracts,policy documents and so on. Keep it in a le that is easily  accessible – it willcome in handy when you need to referto any documents relating to your nancial affairs as well as bringing you peace of mind. Don’t be pressured into signinganything you are notcomfortable with.  Be careful not to let other peoplepressure you into a decision you arenot comfortable with – be prepared tosay no! Seek the assistance of asolicitor before signing anything. Andsteer clear of ‘get rich quick’ schemesor other promises to make you anovernight millionaire. See a reputable mortgage broker. Choosing a property loan to suit your lifestyle and nancial circumstances is paramount. This is where a reputablemortgage broker can assist you.Mortgage Choice loan consultants canmeet with you to discuss your loanoptions and tailor a loan product for your needs, from its panel of leadinglending institutions. A MortgageChoice loan consultant can assist you with your property loan either at one of their ofces during business hours or they can make an appointment at atime that’s more convenient to you.  A mortgage brings the thrill of home   ownership, but once the champagne   stops fowing it’s essential that you can live comfortably with yourloan. Try our few simple steps toget the most from life – and yourhome loan. Life will be a lot easier if you only  borrow what you can comfortably repay - even after allowing for possible ratehikes. If you can manage it, additionalrepayments will fast track your way tomortgage freedom.Even small extra payments can have a big impact. On a $250,000 mortgage,paying just $50 more each month on a30 year mortgage could trim your totalprinciple and interest repayments by upto $51,379 (assumes interest of 8.25%). A redraw facility lets you tap intothese additional repayments – a realplus for meeting unexpected bills.Offset accounts are also worthconsidering. Rather than being paidinterest on your spare cash, any savingsare used to reduce (or ‘offset’) theinterest on your loan. It means more of  your regular repayments go towards whittling away the principal.Many mortgages, including line of credit loans, accept salary deposits,letting you use your loan as a one-stop-shop. Cash can be redrawn when it’sneeded, while any surplus goes toreducing the mortgage. This way every cent is put to work paying off the balance. But you do need to bedisciplined about withdrawals.If your loan is truly testing your mettle, think about renancing. It may  be possible to nd a loan that suits you  better. Karen and Peter Orr recently  renanced, discovering their loan can bea useful nancial tool. Karen explains, “Refnancing gave us a better deal on our  rate, and it also meant we could tap intoour home equity to access low-interestfunds to build a new swimming pool.”If rising rates are making yourmortgage a tough task master, it may be  worth xing, since this gives the certainty of knowing what yourrepayments will be. Anthony O’Briendid just that 12 months ago, and now he’s thumbing his nose at rate hikes. “A  xed rate hasn’t just meant savings on interest,” explains Anthony. “It’s alsoallowed me to budget for mortgagerepayments. As a self-employed worker with an irregular income, that’s denitely helped me live with my loan.”  Your home loan can also streamlinedebt management. Consolidating otherdebts, including credit cards, into yourmortgage can make for easier money management, often reducing the totalmonthly repayment you have to make.Sticking to a disciplined repaymentschedule and controlling credit cardspends can mean valuable savings intotal interest. And that’s something wecan all live with! Have you started reading aboutpurchasing a home and come across the term Lenders’ Mortgage  Insurance – but unsure about what exactly it means to you? Lenders’ Mortgage Insurance, orLMI, is a type of insurance taken out by  banks, building societies, credit unionsand non-bank lenders, designed toprotect the lenders in the event that the borrower cannot meet their repaymentobligations and the funds from sellingthe borrower’s assets don’t cover the loan. LMI is generally a one-off payment  made at the outset of a home loan andit is generally required   for borrowers who  have less than a20% deposit. Lenders Mortgage Insurance cansometimes be confused with MortgageProtection Insurance (MPI), whichcovers you, the borrower, for thepayment of your mortgage instalmentsin the event that you are affected by unforeseen circumstances such as unemployment, illness or death. This type  of insurance is paid annually and varies according to the outstanding loan balance. Lender’s Mortgage Insurance   Living with your home loan  Singling out a great opportunity  Saving has rarely been easy for most people and saving the deposit needed for a home can be difcult.  But with planning, commitment and a few smartstrategies it’s possible to build a decent nest egg.  A vital rst step is to establish a savings goal – usually   between 5% and 20% of your ideal property value. Thisgives you something concrete to work towards plus a benchmark of your saving achievements to date, which mostlenders will want to see. Revisit your household budget for aclear picture of how much you can realistically tuck away ona regular basis. Adding lump sums like your annual tax refund will turbo-charge your deposit.It can be counter-productive to build savings if you’re also carryinghigh interest debts, so aim to reduceoutstanding credit card balances orpersonal loans by repaying more thanthe minimum. Lenders will enquireabout existing debt commitments when you apply for a home loan,and in addition to helping build adeposit, reducing personal debtdemonstrates you have the disciplineto manage a mortgage. Now, make building a deposit your key nancial goal.This may mean sacricing a few of life’s luxuries but your commitment will be amply rewarded. It’s often a good strategy to save rst and spend what’s left. Stay on top of   your savings target by asking your employer to pay part of  your pay cheque into a separate savings account – orarrange a direct debit of your own. Once you have a rm idea of how much you can save,  shop around for a suitable investment vehicle. Some of the best short-term returns – as high as 7% annually - areoffered by online savings accounts. Websites like www.infochoice.com.au offer comparisontables of a wide range of accounts. Be sure to read the ne print on any  accounts though. Some offer tieredrates, only paying top interest on balances over a certain limit. It’simportant to have every cent working for you, so look for a decent rate that appliesacross the board. And keep an eye out forregular account fees – these can quickly eat in to your savings pool. Tips and tricks to save a deposit Congratulations to the winner of theSpring / Summer 2007 MortgageChoice It’s Your Choice promotion.Steven Caruana of Highgate Hill inQLD has won $6,000.     W    I    N    N    E    R  That’s all the time we need to show you how to get the real savings you want on your mortgage. With a Free Mortgage Choice Home Loan Health Check, your local Mortgage Choice consultant can help you nd out if your current home loan is the most suitable one available or if there are other products out there that better address your specic needs. With the backing of Australia’s leading mortgage broker - you’re in safe hands. ã   Wide choice: We have many of Australia’s leading banks and lenders on our panel   ã   Professional home loan advice ã   Local knowledge: We’re Australia’s leading mortgage broker because we combine local knowledge with over  15 years experience   ã   Fax it to: (02) 9954 4913 or    ã   Mail it to: Reply Paid 74789, Mortgage Choice It’s Your Choice Promotion, McMahons Point NSW 2060   NAME CONTACT NUMBERADDRESS POSTCODEEMAIL ADDRESS PREFERRED CONTACT TIME THE “ IT’S  YOUR CHOICE” PROMOTION: Call 1800 110 170 to make an appointment with a Mortgage Choice consultant and once you’veattended that appointment you’ll automatically go in the draw to win $6,000. There will be 1 draw and the rst valid entry will win. Winners will benotied by telephone and conrmed by mail. The opening day of the competition is 30th January 2008. All entries must be received by MortgageChoice at the above address by 5pm Eastern Standard Time on 30th April 2008. The draw will be held at 4pm Eastern Standard Time for the rstdraw on 1st May 2008 at the ofce of Mortgage Choice. The name of the winner will be published in The Australian on the 5th May 2008. *CompleteTerms and Conditions and the privacy notice are available from your local Mortgage Choice consultant or by logging onto the Mortgage Choicewebsite at: www.mortgagechoice.com.au. Authorised under NSW Permit No, [LTPS/07/20443], A.C.T. Permit No. [TP 07/04901], VIC Permit No,[07/5211], and S.A. Permit No. [T07/4965].  Win towards.. It’s your  You could save $1,000’s in 15 minutes, try us!   $ 6,000 choice! Privacy: There will be occasions where we would like to send you valuable inormation directly related to property fnance, as well as other related oers, tips and opportunities. However should you wish toreceive only certain types o inormation or nothing at all, please contact your local ranchise principal. Disclaimer: The content o this newsletter is written expressly or education purposes and is based onthe opinions o the authors. The authors and agents or the authors are unable to accept any liability or responsibility whatsoever to any error or omission or any loss or damage o any kind sustained by aperson or entity arising rom the use o this inormation. It is recommended that you seek proessional advice relevant to your specifc circumstances beore acting on the inormation based in this document. STATE OF THE MARKET Melbourne has experienced extraordinary growth over the past months. The overall median house price in Melbourneincreased to $431,000, which is up by 13.1% over the year. In the September quarter the greatest increase in median prices occurred in the middle band suburbswhere the median increased by 8.1% from $390,000 to $421,795. The greater increases in themiddle and outer suburbs indicate that buyers are looking for value outside the veryexpensive inner suburbs.Increases in the median values for other dwellings were much more uniform withthe inner suburbs increasing by 6.3% from $395,000 to $420,000, the middlesuburbs by 4.6% from $315,000 to $330,000 and the outer suburbs by 2.9% from$240,000 to $247,000. Written by Real Estate Institute of Australia for Mortgage Choice Simply call 1800 110 170 to make an appointment with a Mortgage ChoiceConsultant and request to be entered into the draw.  According to Mortgage Choice’s latest independent  online survey, Australian consumer sentiment for 2008  is more positive than it was for 2007. 83% of respondents    were condent that our economy will be strong next   year, while interest ratesremain the biggest concernfor almost half (45%),followed by economicmanagement at federalgovernment level (25%).Despite interest rate risesin 2007, mortgage marketgrowth remains steady,demonstrating the ‘great Australian dream’ of property ownership ismoving forward relatively unabated - a trend thatlooks to continue. Warren O’Rourke, National Manager Corporate Affairs, Mortgage Choice Ltd  Call now on 1800 110 170 or ll in your name and contact details below and Mortgage Choice Limited 302 Charman RoadCHELTENHAM VIC 3192 Phone 03 9585 7779 Fax 03 8610 0365 www.mortgagechoice.com.au/cheltenham1 This franchise is independently ownedand operated by The Finassist PartnershipABN 51 426 348 068
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