Seeing you through refinancing

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1 REFINANCING GUIDE Seeing you through refinancing hether you re moving home, renovating, or simply looking for a different home loan, refinancing doesn t need to be complicated. At QuickSelect we are interested in what is best for you so that you can make the most of your mortgage. We understand that having the best home loan to suit you is important, so we make sure that we only recommend refinancing if it you will benefit you. With so many different options to choose from, we can help you to find what you need from your refinance, from changing how long you want the loan for, to relocation finance. We make sure we see you through every step of the Master Logo way, guiding you through the entire refinance process to make switching easy to ensure the process is convenient and worry free. We take care of all your paperwork so you have more time to spend on what s important your home.

2 Should I refinance? At QuickSelect we understand that in this day and age, your financial circumstances are continuously changing. Home loan repayments are usually one of the largest household expenses, so we understand the importance of getting them right. We understand that your circumstances may have changed since you first got your home loan and may no longer ideally suit your current lifestyle. Perhaps you have started a new job and are receiving a higher salary, it s possible that your credit history has improved, maybe you ve decided to start a family or it could be that you just want a better deal on your home loan. It s important to review your home loan on a regular basis, to make sure it is still helping you achieve your financial goals, and that its features and structure still suit you. Some questions to consider: Does your current home loan suit your current financial situation? Are there things that frustrate you about the current loan structure? Is your financial situation likely to change? Are you thinking about renovating? Are you happy with the services provided by your current home loan lender? Has your credit history recently changed? Are you benefitting from the features of your current home loan? Reasons to refinance Adjusting features and/or flexibility to suit your needs Reasons against refinancing (at present) If you plan on moving in the near future To use the equity in your house to renovate or invest To consolidate other debts into your home loan To get a lower interest rate If exit penalties are too high on existing home loan If your credit history has taken a hit since your took our your existing home loan If you have an uncertain income Loan to Value Ratio is above 80% If you have late repayments on existing home loan Assests How can a QuickSelect mortgage broker help me? Optimising your loan on a property without a broker can be a complicated and time-consuming process. There is a whole minefield of problems, and too often you only find out when it s too late. At QuickSelect we are obsessed with looking for and finding you the right home loan. And after we find it, we keep looking to make sure you ve always got the best choice for your changing circumstances. We will see you through the entire journey, every step of the way, Loans so that your experience is worry free. And Home because we process and manage $400,000 the loan application on your behalf, you have more time to focus on what s most New property $250,000 important your home. At QuickSelect we pride ourselves in three key characteristics that we think are the most important when finding the best solution for you: Home $600,000 New property $250,000 Total $850,000 Total $650,000

3 Choice The biggest advantage we offer as a broker is choice. Unlike the big banks who only have access to their own products, we have access to over 40 lenders, and 2,500 products, some of which as a direct consumer you won t. All institutions have different policies and knowing the differences can make a big difference. We provide thinking to give you solutions to your needs and potential problems, meaning we are much more likely to come back to you with yes when a single banks may be saying no. We know how to get deals done - we work the system from the inside out and know how to stretch it for the best outcome. This depth and breadth of investigation provides a uniquely unbiased approach as we unearth and negotiate the best 3 lending choices for you from across the big four banks, second tier institutions and non-bank lenders. We take into account your individual needs, considering your financial background, current situation and future objectives and do the research for you. Then we recommend our preferred option and tell you why. We also tell you why not others, so that you can make an informed choice. Convenience We know that finding the right home loan can be a time-consuming process, which is why we make sure that no matter where you live or where you work, we are always accessible. No call centres, no personal assistants, no press 3 for sales and service. Just one direct number that you can call 24 hours a day, 7 days a week. At QuickSelect we work to your timings and are always just a phone call away to answering your questions. We know that convenience is one of the key reasons you will use us. No hard sales, no fees, and no sign on the dotted line. We value your time and understand the importance of not rushing into decisions. We provide you with information for you to review in your own time so that you can be sure you are making the right choice. Our assistance does not end upon settlement we keep looking to make sure you always have the best choice. We see you through the entire home loan process, processing and managing the application from start to finish, making sure you are kept informed every step of the way. Confidence We believe that our rigorous can-do attitude will give you the confidence that you are receiving the best options and solutions from us. By choosing QuickSelect you have assurance that you are receiving expert advice from brokers who have years of experience helping people with their home loans. All of our Mortgage brokers are MFAA accredited. At QuickSelect we specialise in home loans and are committed to delivering what s right for our customers. A home loan is a long

4 term proposition, and having a knowledgeable mortgage broker that can guide you both today and in the future is invaluable. We will have many conversations over the life of your loan as we constantly review your needs and help you clarify your potentially changing position. We always listen first, before asking questions to determine what is most relevant and important to you. We are genuinely passionate about working with you to get the best out of the system and fine tune when required, to get the best outcome for you. Circumstances change and nothing is ever constant. At QuickSelect we see the opportunities not the obstacles -we use our knowledge to always get you the best result. If there is a way it can be done then it will be found. We work with you every step of the way to ensure you have a comprehensive understanding. If hiccups arise from the lender and they sometimes do we ensure they are dealt with efficiently and effectively, and as quickly as possible. Our expert brokers are experienced in all different types of home loans so you can be confident that you are getting what s right and best suits your needs. We consider the structure and portability of the home loan over the long term to ensure that your home is yours quicker, faster and cheaper. We are passionate and driven in our relentless commitment to one simple fact to see you through your entire journey, from start to finish. THE REFINANCING PROCESS. Switching lenders could get you a better deal, with the potential to save you thousands over the lifetime of the home loan. We will guide you through the refinancing process step by step so you can get more out of your mortgage, sooner. 1. Consider the costs Refinancing is a big step, and whilst QuickSelect see you through the entire journey, it is important to consider the time and costs involved in refinancing. You should take into account any upfront and ongoing costs associated with exiting your existing home loan, and switching to a new lender. These may include settlement fee, loan establishment fee, mortgage registration fee, loan service, and exit charges. Your current home loan provider will be able to inform you whether they have a loan termination fee. A QuickSelect home loan broker should also be able to discuss the possible fees and charges involved so you can understand what it will cost to refinance your home loan. They ll also be able to help determine how much you can save in the long term so you can make an informed decision as to whether refinancing is the best, and most cost effective choice for you.

5 2. Choosing the right home loan for you Take some time to consider whether refinancing is right for you, and what it is that you want to get out of the refinance. Once you have narrowed down what you are looking for in your home loan, we can help you to achieve it. With access to over 40 lenders and 2,500 products, our expert home loan brokers are able to compare a huge variety of home loans to identify the best product to suit your budget and lifestyle - whether you wish to pay off your loan sooner and save money, keep your repayments low, access improved loan features, or even access the equity in your home. There are many different loans to consider: basic, fixed, variable, split, bridging and equity. Based on the information you provide us with, we aim to provide you with a choice of loans especially suited to your needs. Here s a guide to your most common loan types: Standard Variable Loans (SVL) Variable home loans are loans with an interest rate which is dependent on market interest rates. This means that the interest rate will vary, fluctuating as the market interest rate goes up and down according to changes in the official cash rate. Most banks have a SVL which is used as a reference point to add discounts for various packages. If you are on a SVL you may be paying too much. Variable interest rate loans can provide a great advantage if the official cash rate falls. Basic variable loans Basic no frills loans have a relatively low variable interest rate. These loans often attract first-time buyers due to their lower rates, and usually have less flexibility and features than standard variable loans. Basic variable loans often lack features such as offset facilities, redraw, extra repayments and ability to split the loan, so it is best to work out what it is you want from the loan. Fixed-rate loans Fixed rate loans let you lock in a specific interest rate, and provide security and regularity, making budgeting easier. During the fixed rate period (usually 1-5 years), the interest rate on your home loan will stay the same, allowing your repayments to remain the same. At the end of the term you have the option to lock you loan back into another fixed term or change to a variable or split loan. Fixed rate loans are best suited to people who seek consistency, as it helps you to plan your budget as you will know exactly how much you need to pay each month. However, if the market rate goes down, your interest rate will still remain the same. Split loans Split loans give you the flexibility of both a fixed rate and variable loan. These loans allow you the best of both worlds you can have the certainty of locking in portions of your loan with

6 a fixed rate, whilst having the flexibility to make unlimited additional repayments at a variable rate. This allows you to benefit whether interest rates rise or fall. Split loans can also be used if you wish to consolidate all your debts into your home loan, by retaining the consolidated debt as a split whereby the repayments are managed separately to your home loan but still have the same interest rate. Honeymoon loans These loans can be especially appealing to first-time buyers due to the initial discounted interest rate. Honeymoon loans are great for providing a short term bonus - the lower interest rate usually only lasts for a limited time, before the loan reverts to a standard variable rate. The lower interest rate makes it a good way of getting a financial head start whilst getting used to paying a mortgage. However, it is important to consider the loan s long-term structure and features. Be aware that lenders will usually impose exit fees for borrowers that wish to refinance once the honeymoon period is up. Bridging/relocation loans Bridging loans are suited to people already on the property market, looking to move. As the name suggests, a bridging or relocation loan helps to bridge the gap between the selling of a current property and the buying of a new one. It can often be complicated when waiting for completion of the sale after the completion of a purchase for the new property. The lender will usually take security over both properties until the sale is complete, providing the bridging amount is lower than 80% of both properties. Equity loans Think of these loans as using the equity of your home as a credit card to fund other things such as investment or renovation. Home equity is the difference between the value of your home and the money you owe. These loans are usually only available if you have a larger deposit secured or good equity in your home and suit those who are looking to renovate their home or invest in a second property. These loans are best suited to those who have a disciplined approach to money, You can structure it in various ways that can benefit you depending on your needs. Remember that by using your equity, you are adding to your level of debt and therefore your home loan will take longer to pay off, or your repayments will increase.

7 Construction loans If you are looking to build a property from scratch, a construction loan allows you to drawdown the loan amount as and when you need it. This means that you are not paying interest repayments on the entire amount from the beginning. Instead, you can drawdown loan amounts at parallel stages to the construction and therefore only paying interest on repayments on the portion you have used. Upon completion of the property construction, you have the option to choose which loan type you would like to convert to, i.e. variable, fixed or split. Non conforming loans Non-conforming loans are suited to borrowers who are having difficulty finding a home loan with bigger banks and lenders. There are many reasons why you may not meet all of the strict lending criteria they provide, so these loans often suit individuals who are self-employed, new migrants or those who have a history of credit impairment. 3. Applying to refinance your home loan When you contact us, either online or by telephone, one of our expert mortgage brokers will discuss your goals and needs with you, in order to understand your current situation. We will provide you with the best three choices of loans, usually one from each tier of lenders, to ensure that we will see you through your refinance happy and informed. Once we have helped you to identify the best product to suit you, we can begin the refinance application. During the refinance process you will be asked to supply supporting documentation which confirms all information discussed to date, including: Your payslips Your employment details Your bank statements Details of any other debts Your mortgage repayment history Current property ownership details Personal Identification 4. Verification/Application and Valuation Once we have received all the necessary documentation from you, we able to process your application and ensure we are matching your position with the institution with the best policy. Once the verification stage is complete, we will carry out a property valuation to work out how much your current home

8 is worth. This is something that we do this to ensure the property is a suitable security for the loan. Providing all information we have about you is correct, and the lending criteria are met, you should receive a letter of offer from the particular lender that we have recommended, which you will need to read carefully, sign, and return to the lender. Remember to keep a copy for your own reference. 5.Settlement Settlement can be arranged as soon as the loan documents have been returned to the lender and they have received your signed letter of offer. The home loan of your property will be registered with the bank or lender, and we will ensure the draw down your loan. This involves paying off your existing home loan using the funds from your new home loan. Your lender will submit a Discharge of Mortgage form to the Land Tiles Office in order to close the old home loan amount. 6.Congratulations on your refinance Here s to many happy years with your new lender and home loan. 7.Managing your loan Loan repayments will begin on the chosen repayment date after settlement, e.g. fortnightly/monthly. We work hard at QuickSelect to ensure we are with you for the entire journey. We will help you to manage your loan by tailoring your repayment instalments to suit you and everything that life throws at you, whether that be reducing your regular payment, or making an extra payment. If hiccups occur, and sometimes they do, you want a Mortgage Broker that can efficiently and effectively deal with the problem to ensure you are as worry free as possible. At QuickSelect we understand that it is important to consider your current and future situations before making any home loan decisions. If done correctly, and for the right reasons, refinancing your home loan can save you money in the short and long term. It may shorten your loan term and reduce your repayments, so you can own your home sooner. aster Logo Give us a call on and we can give your current home loan a health check, by taking time to understand all your needs and also the features of your current home loan, before helping you to decide whether you should refinance, and if so, what your best options are. We will see you through every step of the refinance process to ensure that it is convenient and delivers you better value