HOME LOAN GUIDE

Committed to finding the best home loan that is right for you.

Steve Trewhella | 0449 751 973

Committed to finding the
best home loan that is right for you.

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Ill find the best home Loan that is right for you!

The Benefits of a Mortgage Broker?

Finding the right home loan can be as important as finding the right home. It can be complex
and time consuming. With so many loans available in the market it can quickly become
confusing and overwhelming trying to determine the right loan to suit your needs.
Thats why the majority of Australians now use a Mortgage Broker to assist in securing
their home loan.
As your Mortgage Broker, I will take the stress out of finding the best product to
suit your requirements. My service is complimentary and Im able to compare and
analyse products from over 30 different banks and lenders. Im totally committed to
finding you the most suitable products and best interest rates that can potentially
save you thousands of dollars a year and even more over the lifetime of a loan.
I am available to discuss your requirements any time and being mobile means am
able to meet you during the day, in the evenings and even on weekends at a time that
is convenient to you.
So if youre in the market for home finance, are interested in reviewing you current home
loan, or you would just like a second opinion then please contact me.
I look forward to helping you achieve your financial and home ownership goals
Steve Trewhella
Mortgage Broker

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Types of Home Loans

Interest Rates

Choosing a home loan can be one of the biggest financial decisions in your life, and not all loans offer the same
features. Given the importance of the decision, its vital that you spend time working out what you need from your
loan and you want to make a decision that youre completely comfortable with.

Interest rates are often the single most talked about thing when it comes to home finance. Thats because
interest rates have the potential to impact almost all home owners with a mortgage. A common misconception
is that interest rates only change in line with the official cash rate set by the Reserve Bank of Australia (RBA).
Unfortunately, this is not the case, interest rates can change outside of RBA rate changes. When considering your
options you have choices. You could go for a variable loan, a fixed loan or a combination of the two.

Basic - The ideal solution for home owners or purchasers that simply want a basic loan facility with a highly
competitive variable rate. Typically have no account fees or very low account fees.
Professional Package - Designed for home buyers and investors who want the added flexibility and
benefits provided by a 100% offset account. Many package loans will offer the ability to have loan splits and
options of variable as well as fixed repayments. Generally you will pay an annual account fee with package loans.
Line of Credit - Designed to provide a very high level of flexibility and access to equity in your property.
It is suitable for borrowers looking for the flexibility to manage their home loan and investments through a
single solution.
Construction Loans - For customers who intend to purchase land and then build a new home.
Construction Loans allow you to pay your builder progress payments at each major stage of construction
(e.g. slab, roof, lock-up and completion).

Variable - A variable interest rate is one where the interest rate varies over time. So, when rates go up, so may
your repayments. However, if they go down, you may get the benefit of a lower repayment. Variable rate loans also
tend to have more flexibility around other features such as extra repayments and redraw facilities.
Fixed - A fixed-rate loan is one where the interest rate is set for an initial period, usually for terms ranging from
one through to five years. This means that when your loan provider changes their home loan rates, it has no effect
on your interest rate or repayments, at least during the fixed rate term. A fixed rate is popular for people who need
to know exactly what they are going to pay on a monthly basis. It allows you to budget accurately and provides
protection when interest rates rise.

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First Home Buyers

When buying your first home there are many things you need to consider on top of the purchase price of the
property. You may need to pay Government Stamp Duty, Settlement Costs and Agent Fees, Bank Fees and
potentially Lenders Mortgage Insurance. Suddenly your deposit that you have worked so hard to save may
have just disappeared. The good news for Western Australians is that many first home buyers may be entitled
to financial assistance towards the purchase costs of a home through the State Governments First Home Owners
Grant Scheme. This assistance could potentially save you thousands of dollars in the purchase of your first home.

Refinancing
Often most people think refinancing is too expensive and is just too much hassle. Thats just a myth and with
just a little effort, reviewing your home loan can potentially save you thousands of dollars over the life of your
loan, making it very worthwhile. For example if you have a home loan of $500,000 and you are currently paying
4.75% and you refinanced at a rate of 4.15% then this would save you $2136 per year. Thats $64,000 over the
life of your loan.

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Monthly Principle & Interest Repayment Guide

$200,000

$300,000

$400,000

$500,000

$600,000

4.00%

$955

$1433

$1910

$2388

$2865

4.25%

$984

$1476

$1968

$2460

$2952

4.50%

$1014

$1521

$2027

$2534

$3041

4.75%

$1044

$1565

$2087

$2609

$3130

5.00%

$1074

$1611

$2148

$2685

$3221

5.25%

$1105

$1657

$2209

$2762

$3314

5.50%

$1136

$1704

$2272

$2839

$3407

6.00%

$1200

$1799

$2399

$2998

$3598

6.50%

$1265

$1897

$2529

$3161

$3793

7.00%

$1331

$1996

$2662

$3327

$3992

Note: All calculations are approximate and based on a 30 year (360 months) term.

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What is Lenders Mortgage Insurance?

When it comes to arranging a home loan, if you have a deposit equal to 20% of a propertys value, you will
generally not be asked to pay the costs of lenders mortgage insurance. But if a lender agrees to lend more than
80% of a propertys value there is the risk that if the loan isnt repaid as agreed the lender will lose money. Thats
where the lender can benefit from lenders mortgage insurance.
Lenders arrange the insurance to provide another way of retrieving the money if the need arises. That is, the
insurance company can reimburse the lender. In a nutshell, lenders mortgage insurance is a one-off cost. The
lender will generally buy the insurance and then pass the costs on to the borrower. This is usually added to your
home loan which means youll end up paying the costs as well as interest on top.

Guarantors
Another way you could avoid the costs of lenders mortgage insurance is if someone acts as a guarantor for your
home loan. Guarantors generally need to be immediate family members. The property to be purchased acts as
partial security for the lender and the equity in a guarantors property provides additional security. Obviously, there
are risks in having someone act as a guarantor on your home loan, especially for the guarantor.
The guarantor needs to make sure the property being purchased is a valid investment because they may have to
repay the loan if you dont. As a result, their own property and credit rating could be put at risk. And by tying up
the equity in their own home, the guarantor may not be able to use it if they need to in the future.

Its important that a family member knows all thats involved in being guarantor and it is recommended they
seek legal and financial advice before acting as a third party on your loan. And youd need to consider how your
relationship could be affected if things dont go to plan.
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Being Prepared
Applying for a home loan is the first step towards home ownership and by being prepared you can improve your
chances of an approval. You will need to ensure you get together the following information and documents.
Proof of Identification: Copies of Drivers Licence and or a Passport is a good start. Other documents
such as marriage certificates and birth certificates may also be required.
Proof of Savings: Most lenders require a minimum of 3 or 6 months statements to demonstrate your
savings and your deposit.
Proof of Income: Last 2 consecutive payslips that show your pay for the period as well as year to date
earnings. For self-employed people they will normally require their last two years of financials including tax
returns and tax assessment notices from the ATO. There are some lenders that only require the previous 12 months
income for self-employed.
History: All lenders will need some general history. This information includes your previous work history and
additionally your residential history over the past 2-3 years.
Expenses & Liabilities: You will need to provide an estimate of your monthly living expenses and
any financial commitments you have. If you have any credit cards, personal loans, car loans and store credit
applications please ensure you have the most recent statements. Additionally if you have ever had any payment
issues with any of these or any other credit provider its a good idea to disclose these upfront to your broker. It is
useful to remember that your credit cards will be assessed based on being fully drawn, which means large credit
card limits can actually lower your borrowing capacity.

Assets: Lenders will require an estimate of your assets and their value. This generally includes assets such as
home contents, motor vehicles, shares, superannuation, savings and any other assets that are of significant value
that will strengthen your application.
Insurance: Prior to settlement of your loan and purchase of your property the property must be fully insured
and a copy of the policy will be required by the lender.
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Testimonials
We are first home buyers and having Steve in our
corner with his knowledge is what we wanted and
needed. His communication with us throughout the
process was great and we honestly felt comfortable
knowing Steve was on the job.
Cameron & Stephanie (Sinagra)

Steve was very professional in his approach to all

our needs and being located in remote Western
Australia he ensured communication was maintained
throughout the process through both telephone and
email. We are very happy and satisfied customers.
Wade & Amanda (Kununurra)

Steve came through for us on more than one

occasion. Without his knowledge, support and
perseverance we wouldnt have been able to buy our
dream home. We would highly recommend Steve to
anyone looking for home finance.
Mike & Sandi (Hillarys)

Steve has been such a calming pleasure to work with.

Never once did I have to question anything he advised
and he always had our best interests in mind. This
would have been a stressful time for us, but he has
made it so easy & relatively stress free.
Lyn & Hans (Yanchep)

We re-financed our home loan through Steve and he

saved us thousands of dollars a year in interest. His
attention to detail and knowledge of products in the
market was great and he took care of everything for
us from start to finish.
Kim and Ben (Padbury)

Steve found the best products available to refinance

our mortgage. Being available to come to our home
suited us with our busy lifestyle. With the extra
money we are saving every year with interest this is
allowing us to pay for our childrens schooling.
Martin & Terri (Marmion)

Contact Me
Steve Trewhella - Peard Finance
0449 751 973 | stevet@peardfinance.com.au
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Credit Representative Licence Number: 476590

Licensee: Alvarano Pty Ltd ABN 45 108 269 870
Australian Credit Licence: 415832

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