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Insider Issue 1

Australia's only
interactive
mortgage magazine

>> In this issue <<

• Take the 60 second home loan challenge
• Wealth Warning ... Check your statements
• Preparing to move • Adverse Credit Tips
• How to protect your identity • 2 loans are better than 1
• Reverse Mortgage Explained • Decorating mistakes

www.mortgageinsider.com.au
Back
USEFUL
LINKS
Click on any of
the links below
to be taken to that web site.
Take the 60 second home loan
challenge - See if you'd qualify for
a home loan.
You can improve the value of
your home using Equity+ software
Mortgage and Finance
Association of Australia
Finance Brokers Association of
Australia
Australian Institute of Mortgage
Brokers
Oasis Home Loans - Australia's
most awarded non-conforming
mortgage brokers
See if you'd qualify for a home
loan all it will take is 60 seconds
Credit Ombudsman Service
Limited
Mortgage Calculators
Editorial and advertising
enquiries
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Web: www.mortgageinsider.com.au
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NOTICE
The information contained in this
publication is for reference only and
should not be relied upon in any why.
The publishers of the Mortgage Insider
and all contributors recommend that
any person considering a mortgage in
Australia should obtain independent
legal advice.
For more information, click this symbol
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How to use
Mortgage Insider
The Mortgage Insider magazine is a true interactive magazine
that allows you to get additional information when you need it.
Whenever you see a story or a advert you'd like more
information on, simply click on the blue information button that
appears in it.
You can read Mortgage Insider on line, print it or save it to your
hard drive in .pdf form to read later. Even in .pdf form on your hard drive all the
interactive buttons will still work.
At the top of each page you'll see navigation buttons that will allow you to move
quickly about the Mortgage Insider.
The entire issue is searchable. You'll also find a full index of all editorial content
on the Mortgage Insider's web site.
The Mortgage Insider will be published monthly and contributions and feedback
are more than welcome.
As you can see, Mortgage Insider is a true interactive electronic magazine that
aims to bring you information at the time you need it.
Naturally you need to be on-line for the active information links to work.
Be sure to check out the SUBSCRIBERS area on the Mortgage Insider
website.
Contents
>> Click on a subject to be taken to that story <<
>> 60 Second Home Loan Challenge
>> FBAA standards provides assurance
>> Wealth Warning .. Check your banks statements
>> 2 loans are better than 1
>> How to safely cut up your credit card
>> Preparing to move
>> Reverse mortgages explained
>> How to protect your identity
>> MFAA consumer advertising campaign
>> Your can improve the value of your house
>> What is a Finance - Mortgage Broker
>> Are interest only loan a good idea
>> Adverse credit tips
>> Top 5 decorating mistakes and how to fix them
whenever you see it.
Mortgage Insider - Issue 1 - Page 2 of 20
Back Back to Contents Next

60 second home Plan

loan challenge Before
In a first for Australia, potential may qualify for in a matter of seconds.
borrowers can now do 60
second assessment to see if
they would qualify for a home
The web site includes products like
Reverse Mortgage, Lo Doc and No
doc loans as well as fully featured
You Buy
Purchasing a home is an
loan. The web site offering this mainstream bank loans.
emotional experience. Make
service calls it the "60 second
To take the 60 second home loan sure to sit down with your
home loan challenge".
challenge click the blue information mortgage broker and
The My Home Loan Approval web site button to be taken to advisors and map out a
is not affiliated with any one lender or www.myhomeloanapproval.com.au strategy.
brokerage firm so users get a totally Everyone who does the challenge is Don't let just one aspect of the
unbiased response. eligible to receive a complementary home drive your decision. Try to
The challenge only takes 60 seconds copy of the eBook. answer the following questions.
and is provided FREE OF CHARGE Mortgage Secrets
• Where would you like
and its use can be totally anonymous. Exposed.
to live?
On top of that, the assessment results
are provided INSTANTLY. • How far do I want to
commute to work?
There are
• How far away are
products
from over schools, shops and
170 lenders entertainment. In other
associated words are you reliant
with the web on a car.
site so • How much home can I
borrowers afford? Get pre-
get a pretty approved!
good idea • What type of home do
about their you need to suit your
chances of family today and
getting a tomorrow?
home loan
Come out of this exercise
and how
many comfortable with your area and
products they your mortgage before you go
ahead with the property purchase.

Looking for
Mortgage
Calculators?
Click here!

For more information, click this symbol whenever you see it.
Mortgage Insider - Issue 1 - Page 3 of 20
Back Back to Contents Next

$$ $
Learn how you
can improve
the value of
your home.
Put $1,000s
back in your
pocket.
Get a better
sale price, a
faster sale or a
better
valuation.

wFor
ww .im
more p r o v click
information, e mthis
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o u s e v awhenever
l u e . cyou
o msee. ait.u
Mortgage Insider - Issue 1 - Page 4 of 20
Back
FBAA standards provide consumers with
protection and assurance
With approximately 40% of all
mortgages today written through
the broking channel, the
responsibility of the accredited
broker has never been greater.
Peter White outlines the role of
the FBAA and explains why, in a
largely unregulated market,
consumers should always seek
to deal with an accredited
broker.
Having supported the development of
the mortgage and finance broking
industry for the past 15 years, a key
role of the Finance Broking Association
of Australia (FBAA) is to promote
consumer confidence by ensuring its
members are accredited, trained, and
ethical and have the resources to
conduct business in the most efficient
way.
The role of the FBAA in establishing
member standards has been
significant given the mortgage and
finance broking industry is still largely
unregulated. In an environment with
little regulatory control, the industry
has at times been brought into
disrepute by the actions of rogue
brokers. While 99% of brokers are
legitimate, there's still a minority who
aren't. It has been this small group
who has impacted upon the Industry’s
reputation and have, to an extent,
hindered consumer confidence in
trusting brokers to write mortgages
and loans for them.
As a result the FBAA is working with
state and federal governments to
formulate industry regulation. The
FBAA also review regulatory models
from around the world and advocates
the inclusion of the best elements. This
is a means of ensuring the industry is
operating in line with international best
practice but is also tailored to the
Australian broking environment. A
consumer who uses an FBAA member
broker can be confident that they have
the knowledge, resources and training
to offer a superior service and are held
to a National Proficiency standard by
the Association.
For more information, click this symbol
Back to Contents Next
The FBAA provides its members with
an accreditation path through the
Finance and Mortgage Industry
Certification Agency (FAMICA).
Members of FBAA can attain Certified
Professional Finance Broker (CPFB)
status which is identifiable for its high
quality, knowledge, skills and ethical
integrity. The certification process
involves meeting certain criteria and
ensures that the broker develops their
knowledge and understanding, applied
skills and personal attributes. The
consumer can be confident that a
CPFB upholds the highest professional
standards and operates in a best
practice and ethical manner.
To become an FBAA member a broker
must meet certain criteria and
standards aside from certification. The
FBAA provides the resources for its In a widely unregulated industry, the
members to undertake continuing FBAA provides operating
professional development and training guidelines and resources
so that brokers are abreast of industry to support the progression
developments and best practice and credibility of the
procedure. An FBAA member will have industry. For the
to acquiesce to the disciplinary consumer this means
procedures put in place to reprimand better service and comfort in the fact
any broker operating outside the that you are dealing with a broker that
association rules. For the consumer has met a certain standard and the
this means that an FBAA member consumer is
broker will provide services in ensured that an
alignment with the FBAA procedures FBAA member
and therefore will be a credible broker will add
operator. value to the
process.
The FBAA offer its members the
resources to be able to undertake their Peter White is
day-to-day commercial activities - from the National
dispute resolution mechanisms, Senior Vice
compliance information, police checks President of
and identification verification, anti- the Finance Brokers Association of
money laundering safeguards and Australia.
ongoing learning and development.
The consumer can be confident that
these resources will enable a broker to
offer the highest quality services and
provide protection against the impact
of adverse issues. The FBAA
promotes the use of its brokers to
borrowers as a way to uphold industry
standards and provide regulatory
guidelines that otherwise would not be
in place.
whenever you see it.
Mortgage Insider - Issue 1 - Page 5 of 20
Back Back to Contents Next

WEALTH WARNING: Bank Errors Could

Be Costing You A Fortune. We Show You How
To Find Them And Get Your Money Back.
A study published in the Sydney Morning Herald discovered that chances are you are being overcharged on your home
loan you don't even know about. This is not only unfair but insulting.
This study found that ....
• 54% of monthly bank statements contain errors.
• 80% of errors favour the banks (that percentage has to
make you suspicious).
• The average monthly error is $242.
As you can see the odds are NOT stacked in your favour so
chances are your lender actually owes you some money.

"Find Errors In Your Statements

Or They'll Give You ...
$250 For Wasting Your Time."
That is how confident the people at MortgageWatchdog.com.au
are that you are sitting on errors in your statements. You get their
software, check your statements and if there are no errors they
will give you your money back PLUS another $250.
MortgageWatchdog have over 11,000 and guess how many times
people have found zero errors in their statements? Would you
believe 6 times ... 6 times in over 11,000 people who have used
their software to check their statements .. so you can see the
chances of you not having errors in your statements is nearly
impossible.

Why Would Anyone Think They Don't Have

Errors In Their Statements?
Have at look at some of their latest success stories....
"I have now been reimbursed the exact amount of
discrepancy I had found using your program of
$7,563.04 plus reimbursement of the cost of the
package against my loan." - Ann-Maree Enders - Kingsley, WA.
“Your software has uncovered overcharging by my bank to the tune of almost $1,300 just for the
last two years. Like so many others, I had assumed the Bank would get the figures correct.” -
Mike V - Bungendore, NSW
"We found a discrepancy of $8,643.00 on our fixed loan and this has now saved us $33,000 over
the life of our loan." - Mrs. Mackenzie - Logan QLD.

Special Discount for Mortgage Insider Readers

As a special gift for our readers we have contacted MortgageWatchdog.com.au and asked if you
could have a special discount on the software ... and the end result is that you have a 20%
discount waiting there for you. This is not available through the front of their website, to receive
the discount CLICK HERE.
The best thing is that you still get their famous SuccessGuarantee - find errors in your statements
or they refund you and give you an additional $250 for wasting your time.
You can't get fairer than that can you?

For more information, click this symbol whenever you see it.
Mortgage Insider - Issue 1 - Page 6 of 20
Back Back to Contents Next

For more information, click this symbol whenever you see it.
Mortgage Insider - Issue 1 - Page 7 of 20
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How to Correctly Cut

up and Throw Away a
Credit
It may be a trivial topic, but with
identity theft rampant, one can
never be too cautious.

Look at the credit card and be certain

that this is the credit card that you want
to cut up. Don't laugh; many have
absentmindedly cut up their new credit
cards!
Identify the embossed card number on
the front. Turn it over. Recognize that
number is reproduced on the back with
the addition of a three digit security code.
Referencing the front of the card, cut
three times. Once between the four
groups of numbers. Snip, snip, and snip.
Find the security code on the reverse
side. Cut so that the embossed number and code are TIPS
separated. Snip. Most people don't realize the importance of
Discard each of the five parts in a different receptacle. the three digit security code. It's used to prove
Preferably in different cities. But, distinctly different locations that the card has been "seen".
and at distinctly different times. As most shredders are capable of cutting
cards, it may be useful to purchase one. They
can also be used to shred any other personal

Subscribers documents.
You can also cut randomly, such as alternating
cuts diagonally.

ONLY! Another good idea would be to take a sharp

object (eg. knife, scissors, or even a paper clip
end) and score the magnetic
strip on the back. This will
Be sure to check out the Mortgage make your card difficult to
Insider subscriber only area on the web read.
site. Each month more Useful links in subscribers
area.
information, features and
special offers will be included.

For more information, click this symbol whenever you see it.
Mortgage Insider - Issue 1 - Page 8 of 20
Back
Preparing To Move Home
Moving home can be a
particularly time with so much to
organise and remember,
especially on the day of the
move itself. The more planning
you do in advance, then the
smoother your move should go.
Please read the following tips on
preparing for your move so that
come the big day you are ready.
Draw Up A Plan Of Your Home
Draw up a plan of your new home and
clearly label each room. This will help
your movers get to know the layout of
your new home and to ensure they put
each item or box in the correct room.
Packing & Unpacking
Decide well in advance whether
you are going to do the packing
and unpacking. If you want your
removal company to arrange
this for you then check that they
offer they service and be
prepared to pay extra for it. If
you are going to do your own
packing then get together as
many strong containers and
boxes as possible. Do not
overfill them and clearly mark
what is in each box and to which
room in your new house it
should go to.
Dismantle Furniture
Dismantle self-assembly furniture,
take down any curtains and any other
fittings you are taking with you long
before the removal company arrives.
You want to be ready for when they
arrive to start packing the lorry or van
immediately. Any kind of delay could
lead to extra charges for exceeding
the agreed hours.
Attics & Lofts
Ensure that all items from your attic
and loft are packed and moved down
into an accessible room. Removal
teams will not always go into attics
and lofts and having to do it on the day
may result again in extra delays.
Important Documents
For more information, click this symbol
Back to Contents
Keep all important documents,
especially ones relating to your new
house, separate from your packing.
Keep them with you at all times and
never load them on the removal van or
lorry.
Kitchen Appliances
These should all be disconnected/
cleaned/drained/dried/defrosted where
required in advance of your move. To
avoid damage, the drums of automatic
washing machines must be secured
with the proper brackets supplied by
the manufacturer.
Clothing
Sometimes items of clothing can be
moved on their hangers as removal
companies can often provide special
wardrobe cartons for packing and
moving. Also chests of drawers
containing clothes can sometimes be
moved without unpacking but check
with your removal company first.
Electrical Items
Where possible store electrical items
in the boxes that they came in. The
record deck and the pick up arm of
your record player should be secured
for transit in accordance with the
manufacturers instructions before the
moving team arrive.
Breakable Items
Items such as China, glass,ornaments
and books can be left in cupboards or
shelves if you have the items being
packed by the removal company.
Mortgage Insider - Issue 1 - Page 9 of 20
Next
By: Chris Marshall
Otherwise take care to wrap breakable
items in newspaper and pack carefully
using polystyrene chips or paper
shreddings to help protect the items.
Be careful not to overpack books as
these are often heavy when in bulk.
Foodstuffs
Ensure that all foodstuffs is packed
and stored so that no spillages will
occur. Be aware that foodstuffs are not
allowed into storage.
Garages & Sheds
Items from your garden and shed
should be cleaned and prepared ready
to move. Tools should be safely
fastened so that they don’t come
loose. Flammable products are not
permitted to be carried for
insurance reasons.
Moving Plants
Wrap up your plants in
newspaper to protect them
during the move. Once in
your new house place them in
a warm place and do not
unwrap until the moving
process is completed.
Personal Items
Make up a box of things that
you will need for when you
arrive at your new house
(kettle, tea bags, mugs etc) and
ensure that you transport this rather
than the van or lorry. This means that
once you arrive at your new house you
will be able to get your hands on what
you need without having to search for
and through boxes.
whenever you see it.
Back Back to Contents Next

OASIS: The place to go when the bank says NO!

Sole parent? Deep in debt?

OASIS can help you start again.
When banks won’t!
L ife can deal some unpredictable
cards—and you can suddenly face
the loss of your home through illness,
high consumer debt or unemployment.
It’s hard not to panic when you think
of your repayments on your home
AND other debts. You may even have
incurred defaults on your credit file, or
bankruptcy. (So forget about help from
the banks!)
But why not talk to us, and we can
show you how your increased equity in
your home can help you survive.

Here’s your way out:

We find another mortgage that lets you
consolidate ALL your debts: home, car
and credit card repayments. We deal
with so many lenders that we get you
the LOWEST possible rate.
Next, we help you clear your high-
interest consumer debts. Result? You
and your family get a fresh start with
MANAGEABLE repayments.
Oasis Home Loans helped this single
mother pay off her debts and make a fresh
start. She says ...
“At 45, I found myself alone, divorced and responsible
for two teenage kids. I became very depressed ... I just
went mad with spending.
“Before I knew it, I had monthly repayments of over
$4,000 on my house, car, credit cards and store cards.
I did manage to get a new job that paid $1000 a week,
but it didn’t leave us anything to live on. The banks
wouldn’t help.
“But Oasis did! They refinanced my mortgage to cover
ALL my debts! They helped me pay off all the high-
interest items (car, store and credit cards). Now my
monthly repayments are less than half what they were
before. Our future’s looking much brighter!”

Contact us NOW to find out how ...

www.oasishomeloans.com.au
Terms and conditions apply to approved persons only. 1800 - 4 OASIS
For more information, click this symbol whenever you see it.
Mortgage Insider - Issue 1 - Page 10 of 20
Back Back to Contents Next

Reverse Mortgages
Explained By: Ken Charnly

Can't remember how many times loaned has interest added to it - which
I've been asked "What is a eats away at your equity. If the loan is
reverse mortgage"? Reverse over a long period of time, when the
mortgages are a great way to get mortgage comes due, there may be a
a loan using your primary asset. large amount owed. Furthermore, if
As in all cases of financial the price of your home decreased,
there may not be any equity left over.
lending, the flexibility comes at
On the flip side, if it was to increase,
a price. A reverse mortgage is a
this could allow for an equity gain, but
loan using your
house and is referred
to as a "rising debt,
falling equity" kind of
deal.
To compare reverse
mortgage to a more
traditional one, the type of
mortgage commonly used
when buying a house can
be classed as a "forward
mortgage". To qualify for
forward mortgage, you
must have a steady
source of income.
Because the mortgage is
secured by the asset, if
you default on the
payments, your house
can be taken from you. As
you pay off the house,
your equity is the
difference between the
mortgage amount and
how much you've paid. When the last
this isn't typical of the marketplace.
mortgage payment is made, the house
belongs to you. When deciding how to draw money
from the reverse mortgage, there are a
On the other hand a reverse mortgage
few options; a single lump sum,
process doesn't require that the
regular monthly advances, or a credit
applicant have great credit, or even
account. There are conditions in this
that they have a steady source of
kind of mortgage that would warrant
income. The major stipulation is that
the immediate repayment of the loan;
the house is owned by the applicant.
the mortgage will be due when the
Generally, there is also a minimum
borrower dies, sells the house, or
age required as well, the older the
moves out.
applicant, the higher the loan amount
can be. As well, reverse mortgages Make sure you read the loan
must be the only debt against your documents carefully to make sure you
house. understand all the conditions that can
cause your loan to become due.
Differing from a conventional "forward
mortgage", your debt increases along Anyone considering a reverse
with your equity. Instead of making mortgage should obtain
any monthly payments, the amount independent financial advice.

For more information, click this symbol whenever you see it.
Mortgage Insider - Issue 1 - Page 11 of 20
Back
Protect yourself from
identity theft
The Australian National Crime
Prevention Program (NCP) has
launched an information kit to
help people prevent and respond
to identity theft. The project
forms part of NCP's priority work
on public safety, using a whole-
of-government approach. The kit
contains information on the
estimated costs of identity fraud,
ways to identify how you might
be vulnerable, and describes
how to avoid becoming an
identity theft victim.
Identity theft is part of identity fraud,
and specifically refers to the theft and
use of personal identifying information
of a person, as opposed to the use of
a fictitious identity. This includes the
theft and use of personal information
of persons either living or dead.
IDENTITY FRAUD
Fraud is gaining a benefit by
deception. Usually, but not always,
such gains are financial. The cost of
fraud is increasing both in Australia
and internationally, and can be
devastating to both business and
individuals.
Normal transactions involve only 2
parties —you and the supplier. Identity
fraud normally occurs when a third
party uses deception to get a benefit.
Identity thieves can appear like a
legitimate customer and pass the
procedures and tests that businesses
and organisations use to verify clients'
identities. This breach of procedure
usually occurs in one of these ways:
the creation and use of an entirely new
fictitious identity for fraudulent
purposes
the unauthorised use of a identity
stolen from a real person to gain a
benefit.
For more information, click this symbol
Back to Contents Next
2001-02. Although, this figure does
IDENTITY THEFT - HOW CAN IT
not account the non-financial costs to
HAPPEN?
organisations or victims, or
Identity theft happens in a multitude of undetected identity fraud. The figure
ways. It can range from somebody therefore may be much higher.
using your
credit card
details
illegally to
make
purchases
over the
internet or
telephone,
through to
having
your entire
identity
assumed
by another
person.
This could
be to open
bank
accounts, take out loans, make tax
HOW DOES A THIEF GAIN
returns and conduct other business
INFORMATION?
illegally in your name. Identity theft
can happen easily. Despite your best efforts, a
determined thief may still be able to
Most often you will not even know you
access your personal information.
are a victim until well after the event
Here are some ways this can happen:
has transpired, along with this the
perpetrator may be known to you Your wallet or purse contains personal
personally. information such as your licence,
credit and ATM cards, Medicare card
WHAT ARE THE COSTS?
and other personal documents, that
With the rise and spread of may be stolen.
globalisation, identity fraud has
Your home is burgled and your
become one of the fastest growing
personal information and documents,
crimes in the world. The rapid
or those of close family members,
development of new technologies,
may be taken.
telecommunications and internet
access, and the growth in trade and Many important documents are posted
the deregulation of financial markets to you and can be stolen from your
have extended the reach of letterbox. For example, bank and
international fraudsters. credit card statements, new cheque
books, ATM and credit cards, taxation
Globally, false and stolen identities are
returns or cheques, or pre-approved
being used in an expanding range of
credit card offers. You may be
criminal and terrorist activities. The
unaware that these were sent to you if
cost of identity fraud in Australia has
they do not arrive.
been estimated at $1.1 billion for
Continued page 13
whenever you see it.
Mortgage Insider - Issue 1 - Page 12 of 20
Back
Protect your identity continued from page 12
Your mail may be diverted to another
address. It is simple for a thief to use a
false identity and fill in a change of
address form.
Your rubbish (or that of businesses
you have dealt with) may be searched.
Information found in the garbage could
provide a thief with a head start in
stealing your identity.
You may be the victim of a scam and
be conned into providing personal
information over the telephone or by
email.
Your personal computer may be
hacked into, or hackers may get into
the computers of businesses that hold
your personal information.
Your ATM or Electronic funds transfer
point of sale (EFTPOS) transactions
may be monitored by hidden devices
or seen by the person next in the
queue. Your password or PIN may be
noted for
subsequent
unauthorised use.
Your personal
information may
be stolen and
used or sold by
employees of
legitimate
businesses: for
example, credit
card skimming at
retail outlets or
restaurants
(Credit card
skimming occurs
when your credit or EFTPOS cards
are secretly 'skimmed 'with a small
device that copies the information on
the card 's magnetic strip. Your
information can then be transferred to
a blank credit card to be used without
your knowledge).
PREVENTING IDENTITY THEFT
While it may never be possible to stop
identity theft entirely, there are a
number of very simple safeguards you
can take to protect yourself from
becoming a victim of this type of
crime:
Order a copy of your credit report
regularly
For more information, click this symbol
Back to Contents Next
Place passwords on important PC when online
accounts
Beware of unsolicited emails
Secure your personal information
Do not follow up unsolicited emails
Don't carry personal information
Only conduct transactions with secure
unless you have to
websites
Destroy personal information before
Wipe your hard drive
disposal
Don't use public computers to access
Avoid giving personal information out
personal information
over the phone, by mail, or on the
Internet ACTION AFTER THE THEFT
Secure your mail Unlike other crimes, victims of identity
theft may not know they are victims
Check your billing and account records
until weeks or months after the theft
regularly
has occurred. Through what you do
Limit the amount of credit you have in when you realise you are a victim of
accounts identity theft can minimise the damage
and prevent further crimes being
Write cheques and fill out forms
committed.
carefully
This could be through:
List all account details
reporting to the police
Remove your name from mailing lists
contacting the credit reporting agency
reviewing your credit file carefully
closing all accounts and correct your
credit file
keeping all documentation
clearing criminal records
Check the subscribers
area for a great download.
Click here to put
$1,000's back in
your pocket.
SECURE COMPUTERS
More and more people use computers
Learn how to
and the Internet to communicate, store improve the value
information, and conduct business.
Your computer could be your weakest of your home by
link in preventing theft of your identity.
If you follow a few simple steps you
using Equity+
can make identity theft via your PC software.
more difficult:
Use passwords
Update your password
Use the latest protection software
Use a personal firewall to secure your
whenever you see it.
Mortgage Insider - Issue 1 - Page 13 of 20
Back
MFAA CONSUMER ADVERTISING
CAMPAIGN PROVIDES BORROWING
ESSENTIALS
The Mortgage & Finance
Industry Association (MFAA) is
providing 40 essential
borrowing tips for homebuyers
and business borrowers when it
launches a national consumer
awareness and advertising
campaign today.
Central to the campaign is an
educational consumer website
www.essentialsofborrowing.com.au
which provides useful information on
home and business loans including
loan basics, first home buyers,
refinancing and managing a mortgage
plus business finance. An online and
print advertising campaign aims to
drives borrowers to the site.
MFAA chief executive officer, Phil
Naylor, said “the number one essential
when borrowing, is to always borrow
through an MFAA member. This is the
core message of the campaign as our
members must satisfy rigorous criteria
on education, experience and ethics.”
“Online was the most targeted option
for the MFAA. Our latest consumer
research showed 62 per cent of
borrowers use the internet to research
home loans. Print is the next most
relevant media, with 39 per cent using
newspapers and 25 per cent using
magazines.
“Consumers are increasingly relying
on the Internet for financial
information, and as such we have fine-
tuned our communication efforts to
address online audiences.”
Mr Naylor said “with millions of dollars
spent on advertising each week by
financial institutions and disparate
target audiences, our consumer
awareness activities had to be tactical
and tightly focused. Our audiences are
united only by the fact that they are
looking to borrow.
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“Most online advertising activity will
be on the top two property sites.
Effectively cheaper costs of online
advertising will allow for extended
periods of highly targeted activity,
supported by bursts of print
advertising.
“Budget constraints also mean we
cannot afford to focus on the entire
borrowing decision process – we
have to reach the customer at the
closest point to their decision to
borrow.”
The first phase of the strategy, also
includes a consumer website,
search engine optimisation and
marketing, public relations,
eMarketing, affiliate marketing and
viral marketing.
“Another approach of the campaign
is to harness the power of word of
mouth through closer
communication between MFAA
broker members and a referral
network that includes real estate
agents and financial planners,” Mr
Naylor said as what mortgage
options are available,
“This is an important focus as fees and other
research shows almost 60 per cent of additional costs and
people find a loan provider through a things you should ask
word of mouth recommendation.” your broker.”
Mr Naylor said the campaign’s key The website has five
messages will resonate more with the different case studies on it where real
least financially confident, who are borrowers talk about their different
also more open to abuse by unethical borrowing experiences when using an
providers. MFAA member. The case studies
feature first time buyers, next time
“It is important that we improve
buyers, reverse mortgage and
consumers knowledge of borrowing
construction loans.
and educate them on the benefits of
using MFAA members,” he said.
“Increasing consumer financial literacy
is an objective of the financial services
sector. The educational element to the
campaign aims to raise awareness of
the many aspects of borrowing such
whenever you see it.
Mortgage Insider - Issue 1 - Page 14 of 20
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You can improve your

house value and regain
your equity!
Are you thinking of re-financing
or selling your house?
If you are, then you are in the
hands of a property valuer
either through your bank or
through the purchaser’s bank.
Either way it’s essential that you
understand that it is possible to
get a better valuation and Equity
+ can show you how.
Equity+ software is more than a multi
platform software program that allows
shows any homeowner how to
improve the value of their home either
for re-finance or property sale. Equity+
comes with a number of integrated
resources to assist in your re-finance
or selling process.
On 6th October 2005 the Sydney
Morning Herald when talking about
of your home for re-sale or refinance.
the Valuer General reported “One in
10 valuations was out by more than Equity+ could allow you to borrow Equity+ could mean the
40 per cent, a pretty handy margin of more and in some cases pay no difference between
error”. Lenders Mortgage Insurance - LMI getting a loan or missing
which will save you $1,000's. out.
The developers of the Equity+
package understand how valuers and
real estate agents work and have
adapted the Equity+ to maximise your
house’s valuation potential.
When Equity+ is used in conjunction
with supporting resources that are
supplied, every user will have greater Looking for
control over regaining their lost Equity.
In fact, Equity+ guarantees a better
valuation or sale price every time and
that could mean many thousands of
Mortgage
dollars in your pocket.
Think of it. An increase in the sale or
valuation price of your house of just 2
Calculators?
or 3% could mean more than $10,000
in you pocket. Click here!
Equity+ could give you reason to
celebrate when you improve the value

For more information, click this symbol whenever you see it.
Mortgage Insider - Issue 1 - Page 15 of 20
Back
WHAT IS A MORTGAGE -
FINANCE BROKER?
Brokers are now the number
one choice for consumers who
are seeking a home loan or to
refinance their existing loan.
Businesses too use finance
brokers to help them with their
finance needs from car and
equipment leasing to loans to
help their businesses expand.
WHAT BROKERS DO
Brokers work with clients to
determine their borrowing
needs and ability, select a loan
suited to their circumstances
and manage the process
through to settlement.
Some benefits of using a
broker:
• They do all the legwork
• Wider range of loans
• More flexible
• Greater expertise as they
focus on loans only
TYPES OF BROKING
Brokers can specialise in areas
such as:
• Residential Loans/Mortgages
• Reverse Mortgages/Equity
Release
• Equipment Leasing
• Chattel Finance
• Car and personal loans
• Business Loans
• Debtor Finance
ª Commercial Property Finance
PANEL OF LENDERS
Brokers can only offer loans
from the lenders they are
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accredited with. They call this
their panel of lenders.
Lenders will normally range
from the large banks through
to specialist non-bank lenders
and mortgage managers. The
size of a panel of lenders will
vary from broker to broker.
You can ask to view your
broker’s panel.
HOW BROKERS ARE PAID
In most cases residential
brokers are remunerated by
the lender and receive an Ongoing education to maintain
accreditation
upfront commission and a
trailing commission on the loans Probity checks
they settle.
Professional indemnity
The normal practice for insurance
commercial, equipment and
Membership of an external
general finance brokers is that
dispute resolution service
they enter into a mandate or
agreement with the commercial LEGAL REQUIREMENTS FOR
or business borrower which BROKERS
provides for a fee to be paid by There is currently no national
the borrower to the broker for regulation for brokers. However,
sourcing their required finance. some state laws and regulations
WHY USE AN MFAA MEMBER exist, such as:
MFAA members must adhere to Brokers are required to hold a
the industry Code of Practice licence in Western Australia
which required high Brokers are required to be
professional standards, fair registered in the ACT
business practices, ethical
behaviour and compliance with A finance broking contract
both the letter and the spirit of (FBC) has to be signed in NSW
the relevant laws and and Victoria between the broker
regulations – all in the interest and the borrower before the
broker can approach the lender
of you, the borrower.
on your behalf. The FBC
MFAA sets the highest ensures brokers fully disclose all
standards in the industry for its details of the loan transaction,
members: including any monetary or non-
Industry experience monetary benefits they receive.
Education standards
whenever you see it.
Mortgage Insider - Issue 1 - Page 16 of 20
Back
Are Interest Only Mortgages A
Good Idea?
If you are looking for a home but
you know that paying a mortgage
will be a severe drain on your
finances, then perhaps
you should look at
getting an interest only
mortgage. If you are
unsure about what an
interest only mortgage is
and how it can help you,
then this article can
provide you with some
useful tips on getting an
interest only mortgage.
What is an interest only
mortgage?
An interest only mortgage is
a mortgage where you only
pay back the interest on the
loan, and none of the
capital debt is repaid
directly. Once you get to the
end of the mortgage term, you will pay
back the capital payment in full.
Traditionally in Australia Interest Only
loans have applied to loan that fall
outside the Consumer Credit code and
tended to be for period of 12 or 24
months.
In more recent times main stream
lenders now offer interest only as a
option for more conventional long term
loans.
How do you pay back the capital?
If your loan is a for a fixed period the
the capital is repaid as part of the
refinance on your property or upon the
sale of the property.
What is the advantage of this?
Your interest only payments will
normally be be lower each month and
so if you cannot afford to pay a lot
each month at the moment, an interest
only mortgage might be a good idea.
Are there risks?
Of course, there are a number of
potential risks of getting an interest
only mortgage. The first problem is
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By: Peter K
that if you are hoping to pay off the back a lot more money than if you
capital by switching to a repayment started on a repayment mortgage.
mortgage later on, you will be paying Although you may find it hard right
now, getting a
repayment mortgage to
start with might be a
better option.
If you are going to take
out an interest only
mortgage, make sure
that the funding method
you use is safe, and that
you have contingency
plans if the fund is
insufficient to pay back
the capital. If you do
this, then getting an
interest only mortgage
can be a great way of
keeping your payments
low whilst you improve
your income.
Adverse Credit Home Loan Tips
No longer does having bad credit mean you can't get a home
loan. Today, there are a number of lenders who are happy to
consider applicants who have a bad credit history.
If you do have a poor credit history, the best thing you can do is be open and
honest with your broker. By disclosing everything it means a lender
considering your application can make an informed decision about your
circumstance and
capacity to repay the
loan.
Lenders who provide
what are called "non
conforming" loans set
their interest rates at a
"rate for risk". In other
words, the greater the
risk they believe you
are, the higher the
interest rate is likely to
be.
So before you decide
you'll never qualify for a home loan have a talk to your mortgage
broker and explain your circumstance. You might also want to
visit www.myhomeloanapproval.com.au and see if there is a loan
for you.
whenever you see it.
Mortgage Insider - Issue 1 - Page 17 of 20
Back Back to Contents Next

OASIS: the place to go when the bank says NO!

Struggling to keep
your business
afloat?
Banks won’t help, but Oasis
Home Loans will!

I
t’s not much fun when you’re
juggling your business expenses
AND trying to pay off your
mortgage—and the phones are
constantly ringing with creditors
chasing you for money.
Mortgages are usually the largest
payment you make each month.
Refinancing with the right loan product,
you could end up paying less per
month ... even reduce the term of your
loan!

Money worries like this certainly don’t Consolidating your debts will also
help your relationships with family or ...
friends! In fact, it’s tempting to just walk • Take some of the pressure off higher
away from everything! interest rates from your personal
loans and credit cards;
But before you walk ...
We know that life can be tough. You • Give you more flexible finance
can get into tight financial situations options, such as using your existing
through no fault of your own. property equity for other purposes.
Hey, we’ve been there too, at times! It’s
one reason why we’re so good at what
we do. We know how you must feel.
At Oasis Home Loans, we’ve helped
many people who are in your exact
situation!
We know how demeaning and
embarrassing it can be to ask the big
lenders for help—and be knocked
back. But you deserve to have your
situation untangled. And usually it CAN
be, especially with the will to succeed
that we bring to tough cases.
Refinancing may be your answer!
By refinancing—which means
packaging your current repayments
from all your debts into one convenient When things look
payment—has helped many people. hopeless, a little
discussion will often
reveal an answer that
Ask us NOW! may be right in front
of you! At Oasis Home
1800 4 OASIS Loans, we revel in
challenges!
www.oasishomeloans.com.au

*Fees and conditions apply—to approved persons only

For more information, click this symbol whenever you see it.
Mortgage Insider - Issue 1 - Page 18 of 20
Back
The top 5 Home Decorating
DON'TS and how to fix them
By: Stacey Wiktorek
It’s happened to anyone who
has spent time decorating a
room. You put in tons of blood,
sweat, and tears (not to mention
money) designing a room with
the perfect color scheme, the
perfect furniture, the perfect
window treatments -- only to
find it’s lacking that certain
something.
A common design mistake could be
the culprit.
But don’t lose hope. For every design
mistake, there is a lesson to be
learned, and an even better home
design to be achieved. So, we’ve
collected some of the most common
design mistakes and some creative
ways to fix them.
Design Mistake #1: Bad Lighting
Let’s face it, no matter how trendy
your color scheme, no matter how
fashion forward your furniture, if you
can’t see it (or if the lighting is so poor
it alters the look), you can’t appreciate
it.
How to Fix It:
First of all, make sure your free
lighting accessory (the sun) is getting
through. Effective window treatments
that combine fashion and function are
key in this solution. Any shade or blind
that allows you to control incoming
light is going to help you out here:
sheer shades with horizontal or
vertical vanes that can be adjusted
are one solution. Plantation shutters
also offer a classic look, with the
ability to control the light that comes
through.
Also, try not to ever limit any room to a
single light source. Add floor and table
lamps, even when there is an
overhead light fixture. This will not
only give you more resources for
brightening the room, it will also give
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you more options for changing the
ambience, as you can play with the
number of lights you have on at once.
Design Mistake #2: Looking Up
to Your Art
For some reason, many people try to
balance out a room by placing their
wall artwork high above their furniture.
However, instead of balancing the
room, it makes the pieces appear as
though they are “floating”, achieving a
disorganized effect instead of a “put
together” one.
How to Fix It:
Wall decor should relate to the
furniture below it. Some designers
suggest that there should be about 2m
from your floor to the top of any
hanging wall artwork or pictures. Of
course, there are exceptions with
larger pieces, but this is a good rule of
thumb that will help you keep your wall
decor from floating away.
Design Mistake #3: Everything
Matches!
While we’re not suggesting clashing
colors and furniture is in, too much
matching can actually be a design
nightmare. When everything matches
exactly, a viewer’s eye is not drawn to
any one thing in particular, which can
make the room appear dull.
How to Fix It:
Coordinate, don’t duplicate. When
choosing accessories, furniture, and
colors, pick items that will blend well
together but do not repeat themselves.
Use the same color family, but not the
same exact color. And don’t be afraid
to mix patterns with solids for a more
subtle effect.
Design Mistake #4: Choosing
Quantity over Quality
This is one of the most common
whenever you see it.
Mortgage Insider - Issue 1 - Page 19 of 20
Next
design mistakes, and often results in
over furnishing, over accessorizing,
and way too many knick-knacks. It
works against a unified look for a
room, as every space becomes
crowded with tiny accessories and
picture frames. In moderation, these
accessories accent a room – but their
overuse can make a room feel
crowded, cramped, and disjointed.
How to Fix It:
But what you love, and only buy it
because you love it, not because it’s
on sale. (Admit it, we’ve all done it)
And if you can’t afford that gorgeous
large wall hanging yet, don’t purchase
small candle holders and picture
frames instead. Wait and save up!
Your room decor will thank you for it.
Design Mistake #5: I Just Want
to Get it Done!
Home decorating takes time,
exploration and research, but too
often people make decisions too
quickly, without testing the possibilities
or researching various options. This
can lead to paint colors that don’t look
right (they can often look different in
the natural lighting of your home), or
even worse, an ignoring of your own
personal style in an effort to get it
done.
How to Fix It:
Test, explore, and research! And when
you’ve done all that, listen to your gut!
Home decor magazines are a great
place to start your research. There are
also a variety of online tools that can
help.
Of course, there are exceptions to
every rule, and perhaps even in this,
some home design rules are made to
be broken. So use these as guidelines
as you embark on your home design
projects! •
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Making your loan possible!

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Mortgage Insider - Issue 1 - Page 20 of 20