" Too many choices & so little time!

... what is the Best Mortgage for me? "

Do you Need the Security of knowing what your Repayments will be?

YES You need a fixed rate mortgage or a split loan (Fixed & Variable)

With a fixed rate mortgage the mortgage lender fixes the interest rate owed on your loan for a set period of time, usually between one and five years. After that it normally reverts to the lender's Standard Variable Rate but you should consider remortgaging

NO You need a variable rate mortgage

The interest rate on a variable mortgage goes up or down in line with a pre-determined rate – normally the RBA base rate plus a % margin. However, mortgage lenders have also been raising their standard variable rates independantly of any RBA moves to recoup squeezed profit margins due to the credit crunch.

Do you have Any Savings?

YES You should consider an offset mortgage.

This type of mortgage allows you to offset your savings against the amount you owe on your mortgage which will reduce the total interest bill!

NO You don't need a mortgage with offset features. A Basic 'no frills' mortgage (with a lower interest rate) will do.

Do you want to begin Paying off your home loan Immediately?

YES You need a principle & interest(P&I) mortgage

A P&I mortgage guarantees to pay off you mortgage debt by the end of the term. It comes with higher repayments than an interest-only mortgage.

NO You should consider an interest-only mortgage.

Repayments are cheaper on this type of mortgage but at the end of the interest-only term you will still owe the capital you borrowed – meaning that if you haven't been making extra repayments, you still owe the same amount as you did at the start.

Do you want to be able to make Extra Payments?

YES You need a flexible mortgage.

Flexible mortgages enable you to make additional repayments and get access to these funds if and when you need them via a redraw facilility. Some mortgages even let you take mortgage payment holidays. This could be useful if you are self-employed, get an annual bonus, if your income fluctuates or if you need a career break for any reason.

NO You don't need a mortgage with offset features. A Basic 'no frills' mortgage (with a lower interest rate) will do.

Can you Prove what you Earn?

YES You should be eligible for a Full Doc mortgage

NO You might need a Lo Doc mortgage

With Lo Doc or self certification mortgages you have to declare what you earn but not prove it. Self-cert mortgages are suitable for self-employed people or people with several income streams eg PAYG plus self-employed earnings

Have you had any Credit Problems in the past?

YES You might need a "credit impaired" mortgage.

Having past credit problems makes getting a mortgage more difficult but not impossible – although you will usually have to pay a higher rate. REFRESH will be able to find a selection of lenders who specialise in credit impaired mortgages.

NO You should be eligible for a mortgage from most mainstream lenders.

Is the type of Property or Location a little out of the Ordinary?

YES You might need access to a specialist non-confirming lender

If any details like the layout of the property (eg high rise flat or student accomodation) or location (eg rural or regional) are non-standard, this can make getting a mortgage more difficult but not impossible. REFRESH will find you the most competitive non-confirming mortgages.

NO You should be eligible for a mortgage from most mainstream lenders.

Are you planning to Rent Out the property?

YES You need a investment property mortgage.

These mortgages are for investors renting out property. The amount you can borrow will be based on the rent you can get for the property in addition to any other income you receive.

NO You should be eligible for a mortgage from most mainstream lenders.

Are you thinking of Moving House soon?

YES You either need a portable mortgage that you will be able to transfer to your new property or a mortgage with minimal exit penalties.

NO A mortgage with higher exit penalties shouldn't be a problem.

Although you will have to pay them if you want to remortgage in the early years of your mortgage and they will be higher if you have opted for a fixed rate fixed term or initial honeymoon rate.

Have you got a Deposit or Equity in your existing property?

YES Depending on how much of a deposit you have or how much equity is in any existing property, you will be eligible for most mortgage deals.

NO If you are purchasing, you will need a 100% mortgage.

This is where the lender lends you 100% of the purchase price of your home. However this is risky – if property prices fall you will be in negative equity straight away.

If you are refinancing, you will normally be limited to borrowing between 90-95% against the value of your property, subject to an independant valuation conducted by the lender.

If you are purchasing, have you got enough Additional Funds for legal costs, stamp duty and moving costs?

YES You should be eligible for a mortgage from most mainstream lenders.

NO You will need a 100% plus mortgage.

Only a few lenders offer these deals and they come with higher rates. The extra money could be spent on solicitor's bills, moving costs and furnishing your new home.

Would you like a hand to find the Best Mortgage deal for you?

YES The very next step is easy... take the REFRESH Challenge

NO If you go it alone, best of luck with your search!

In the meantime, call us on (03) 9376 2938 24 hours, 7 days a week and speak to a real person who is dedicated to answering any questions you have.

If we aren't available, just leave your details and we will call you back at a time that suits you. Alternatively you can email us at helpdesk@myrefresh.com.au and one of our mortgage specialists will contact you within 24 hours.

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