WEBVTT - Create your own INTEREST RATE CUT!  Ask Adam

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<v Speaker 1>Good morning everyone, and welcome back to Sugarmuma's File, a

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<v Speaker 1>podcast that ignites your financial journey with inspiring stories and

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<v Speaker 1>innovative strategies. I am your host, financial planner, Hannah Cannibell,

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<v Speaker 1>and today we are in for another Ask Adam series

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<v Speaker 1>where you get to be brought up to speed on

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<v Speaker 1>your mortgage, what the going rate is, what's financially advantageous

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<v Speaker 1>for you and your goals, and of course what you

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<v Speaker 1>should know and understand and potentially be considering to help

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<v Speaker 1>get the monkey off your back. That is, beat the

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<v Speaker 1>bank at their own game and pay your mortgage off

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<v Speaker 1>as quickly as possible, saving valuable time and money. Now now,

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<v Speaker 1>also a quick reminder, I must do my compliance duties,

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<v Speaker 1>and that is to remind you that everything in this episode,

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<v Speaker 1>including every single other episode, is always general advice only

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<v Speaker 1>and for educational purposes. Also, please know that should you

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<v Speaker 1>want to speak with Adam or work with Adam, I

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<v Speaker 1>get zero benefit both upfront and ongoing. And having Adam

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<v Speaker 1>on this podcast, I am more than happy to share

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<v Speaker 1>Adam as a fantastic resource because I know for myself

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<v Speaker 1>personally after working with Adam for eighteen years how valuable

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<v Speaker 1>his advice is for your financial journey towards independence and

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<v Speaker 1>sustainable authentic financial independence. All right, good morning, Adam. How

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<v Speaker 1>are you this morning? I'm well, Thank you, I'm well.

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<v Speaker 1>I love asking these questions today. Whenever we speak on

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<v Speaker 1>the forum, she's quite often I'm always asking me it like,

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<v Speaker 1>what's going on in you know, the mortgage world, and

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<v Speaker 1>what's you know anything new that I need to know

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<v Speaker 1>and understand? And you always have such insightful information and

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<v Speaker 1>it's always very relevant, and you know, I guess up

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<v Speaker 1>to speed with what's going on. I feel like you're

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<v Speaker 1>like kind of ahead of the game. So I wanted

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<v Speaker 1>to talk about the mortgage industry, interest rates, home loans,

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<v Speaker 1>what people are doing, all the trends that you're seeing,

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<v Speaker 1>the things that we need to be look out for

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<v Speaker 1>and be careful with when it comes to our home loan,

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<v Speaker 1>so that we understand that actually having a mortgage free

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<v Speaker 1>life is actually something that is a realistic goal to

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<v Speaker 1>be working on. So I'm going to hit you up

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<v Speaker 1>with the whole parlor of questions if you don't mind.

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<v Speaker 1>All right, Okay, first of all, home loans A right now? Now?

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<v Speaker 1>What do we need to know right now? About the

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<v Speaker 1>home loan market. You know the rates that we're paying.

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<v Speaker 1>I saw the other day online that people can save

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<v Speaker 1>up to on average zero point four to six but

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<v Speaker 1>stand off the home loan if they actually reach out

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<v Speaker 1>directly to their bank or to a mortgage brokeer. Is

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<v Speaker 1>that true?

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<v Speaker 2>The right? I'm not sure, but yes, you need to

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<v Speaker 2>reach out to your bank, Gilly. You know, interest rate

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<v Speaker 2>markets change all the time, and depending on how long

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<v Speaker 2>you've had your loan for discounting changes. So we're always

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<v Speaker 2>recommending at least once a year, contact your bank and

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<v Speaker 2>try to review the interest rate. We do that every

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<v Speaker 2>year for our clients.

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<v Speaker 1>You do that automatically. You don't even we do. Clients

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<v Speaker 1>are even ask You just go and do it.

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<v Speaker 2>Yes, that's right, so why not? I mean banks take

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<v Speaker 2>advantage otherwise, if you don't ask, you don't get and.

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<v Speaker 1>The squeakiest wheel always gets fixed first.

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<v Speaker 2>Absolutely, so it's always worth while doing either direct with

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<v Speaker 2>your bank or through your mortgage broker. You know, it's

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<v Speaker 2>not hard to look at what competitive what the competitive

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<v Speaker 2>rates are out there, you jump online, it's pretty easy

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<v Speaker 2>to get. All you need is a bit of information

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<v Speaker 2>like that on a phone call. And they know that

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<v Speaker 2>you're serious.

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<v Speaker 1>But also you know, if that figure is correct, zero

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<v Speaker 1>point four six percent is the average saving that someone

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<v Speaker 1>will get contacting their bank or going through a mortgage broker.

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<v Speaker 1>That's a lot of money permit to be saving, and

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<v Speaker 1>that's money that could be going towards the home loan

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<v Speaker 1>and you know, helping pay off the mortgage a lot quicker,

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<v Speaker 1>saving valuable time and money.

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<v Speaker 2>Yeah. Look, if you're looking at Sydney on the average

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<v Speaker 2>of a million do or home loan five hundreds a

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<v Speaker 2>month interest.

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<v Speaker 1>It's funny. You know, people will do all these extreme

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<v Speaker 1>things to save money, which I respect and admire, but

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<v Speaker 1>then quite often the simplest, most effective strategy is right

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<v Speaker 1>under our nose. But we can't be bothered to because we,

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<v Speaker 1>I guess have a bit of a block thinking there's

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<v Speaker 1>going to be so much paperwork. It's going to be

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<v Speaker 1>you know, it's going to force us to do our

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<v Speaker 1>taxes or catch up on our personal accounting, and we.

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<v Speaker 2>Just well, yeah, some people just feel awkward about it

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<v Speaker 2>or yeah, so like not wanting to bargain, you know,

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<v Speaker 2>or haggle for you know, a discount if you're buying

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<v Speaker 2>something in retail, it's the same thing. They're a bit

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<v Speaker 2>nervous or awkward about making that phone call, but you

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<v Speaker 2>shouldn't be.

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<v Speaker 1>Well, I guess that's where people like myself use you

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<v Speaker 1>because you do it for me.

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<v Speaker 2>That's right.

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<v Speaker 1>I've never had to make that front call.

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<v Speaker 2>No, exactly, and you know we do it for you.

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<v Speaker 2>And when when you're doing it ongoing. The longer, the

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<v Speaker 2>longer that your rate is closer to the market leading rates,

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<v Speaker 2>the less need you have to refinance. And that is

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<v Speaker 2>a win because refinancing, you know, there are costs, always

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<v Speaker 2>in costs involved with that, and if it's worth while refinancing, great,

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<v Speaker 2>do it. Encourage it. But you can stay with your

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<v Speaker 2>current bank and get a better rate. Why not?

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<v Speaker 1>Do you have a script for people who don't want

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<v Speaker 1>to go and refinance, don't want to go through a

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<v Speaker 1>mortgage broker, but need to call their bank and they're

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<v Speaker 1>willing to have that awkward, uncomfortable conversation.

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<v Speaker 2>Wouldn't say a script, but you know, to your best bluff,

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<v Speaker 2>I mean, yeah, just as I said, do your research,

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<v Speaker 2>check what the best rates out there are. And then

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<v Speaker 2>so on the phone you can you can talk to

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<v Speaker 2>whoever you're speaking with. I want to ask for the

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<v Speaker 2>retention team so they know you're serious about it, that

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<v Speaker 2>you're looking elsewhere, and if you if they don't come

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<v Speaker 2>to the party, you're at the door.

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<v Speaker 1>I feel like we need to do a role.

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<v Speaker 2>Let's try.

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<v Speaker 1>Okay, all right, So I want you to be a

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<v Speaker 1>mortgage owner and I'm going to be the bank. So

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<v Speaker 1>you're going to call me, Hi, Adam, How can I

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<v Speaker 1>help you today?

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<v Speaker 2>Hi, nasty major bank. I've got a homeline account with

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<v Speaker 2>you that i'd like to discuss my interest rate on.

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<v Speaker 1>All right, how can I help?

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<v Speaker 2>Do you need to identify me?

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<v Speaker 1>Most definitely?

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<v Speaker 2>Look, I've been my interest rate is now six point

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<v Speaker 2>eight percent, and I've just been online and I've seen

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<v Speaker 2>that there's rates of six point one percent out there.

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<v Speaker 2>And my husband and I, well, I don't want to

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<v Speaker 2>say my husband, my wife and I.

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<v Speaker 1>I'm sure your wife would be offended, but it would

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<v Speaker 1>also be perfectly find if it was your husband my wife.

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<v Speaker 2>And I want to take advantage of that. So either

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<v Speaker 2>we'll be looking to read finance unless you can sharpen

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<v Speaker 2>our interest rate in order to keep us. Would you

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<v Speaker 2>be willing to look at that for me?

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<v Speaker 1>And when you say sharpened. Do you expect the bank

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<v Speaker 1>to match that rate or beat that rate.

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<v Speaker 2>Depending on the rate you're quoting. You know they would

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<v Speaker 2>rarely beat it, but the idea, yeah, you want to

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<v Speaker 2>ask them to match it, but either he always asks

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<v Speaker 2>them to beat it. As I said, you know, at

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<v Speaker 2>the end of the day, not so much that you're bluffing,

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<v Speaker 2>but give them an opportunity to think that you're not

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<v Speaker 2>serious about moving, and that you're just doing this out

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<v Speaker 2>of process, and that you will accept a lesser discount

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<v Speaker 2>than what you're aware is available out there. Then they'll

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<v Speaker 2>do that. The bank will take advantage of it. So

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<v Speaker 2>tell them you want them to match or beat it.

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<v Speaker 1>All right, everyone, you heard it from Adam. There is

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<v Speaker 1>your script. We just did a little role play for you,

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<v Speaker 1>so you can now confidently make that call to your

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<v Speaker 1>bank and demand a better deal. All right. Another question

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<v Speaker 1>I want to ask you is about changing jobs. If

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<v Speaker 1>someone is about to buy home, or is about to

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<v Speaker 1>apply for say a debt recycling strategy, or looking to

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<v Speaker 1>refinance existing homeland, they are thinking of changing jobs, are

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<v Speaker 1>about to change jobs, does this throw a spanner in

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<v Speaker 1>the works.

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<v Speaker 2>Yeah, it ken. I mean, if you're you're changing to

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<v Speaker 2>similar equivalent of what you're already doing and your income

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<v Speaker 2>isn't reducing, then it shouldn't post so much of a

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<v Speaker 2>problem unless you've got strong probation clauses within your contract,

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<v Speaker 2>so that that would depend on your lenders appetite for that,

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<v Speaker 2>if they've got any issues with probation. So ideally you'd

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<v Speaker 2>prefer it. I'd prefer it clients weren't changing job because

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<v Speaker 2>it is a risk, but most of the time it

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<v Speaker 2>should be okay. There would only be an issue really

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<v Speaker 2>if you're changing from a trade related job to say,

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<v Speaker 2>you know, inequities or stop broker and on a much

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<v Speaker 2>higher income. You know that's got no track record there,

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<v Speaker 2>so that that's a bit of a red flag and

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<v Speaker 2>bank might might want to wait until you've been there

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<v Speaker 2>for a year.

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<v Speaker 1>Yeah wow.

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<v Speaker 2>So in that.

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<v Speaker 1>Scenario, having that, I guess, transparent upfront communication with the

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<v Speaker 1>mortgage broker if there is a career change happening or

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<v Speaker 1>going to happen, is important.

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<v Speaker 2>Yeah, and to get the timing because as I said,

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<v Speaker 2>if it's and most of the time you'll assume someone's

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<v Speaker 2>moving into the same role that they're doing and maybe

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<v Speaker 2>getting a pay rise, which is all normal and great.

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<v Speaker 2>It's more if it's one of those unique situations we're

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<v Speaker 2>chaining into a different job together, or or if it's

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<v Speaker 2>going from full time, permanent full time to a contract role.

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<v Speaker 1>Is the same situational issue with women who are planning

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<v Speaker 1>on having a family and taking time at the workforce question?

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<v Speaker 2>Not. Most banks have a credit policy for that. We're

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<v Speaker 2>in that if you can provide a letter from your

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<v Speaker 2>employer to confirm that you were returning to work and

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<v Speaker 2>what capacity, so how many days a week, you know,

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<v Speaker 2>what percentage of your full time income you're going back to.

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<v Speaker 2>They'll factor that into the credit assessment and what you

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<v Speaker 2>can afford to borrow. And then you just need to

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<v Speaker 2>ensure that you've got enough cash in the bank to

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<v Speaker 2>cover any gap of income between when you go on

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<v Speaker 2>matturnity leave to when you return to work. And that's

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<v Speaker 2>all okay.

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<v Speaker 1>That is so interesting to know, and so many people

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<v Speaker 1>wouldn't even think about that, you know. That's why that

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<v Speaker 1>preparation for you start having a family is so important.

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<v Speaker 1>On that note, is there a maximum age that someone

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<v Speaker 1>can apply buy a home as a principal place of residence?

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<v Speaker 2>No, there's no maximum age. I mean, you need to

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<v Speaker 2>be ideally and still working. If you're not still working,

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<v Speaker 2>then you need to have.

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<v Speaker 1>Sufficient be a self funded retire to evidence.

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<v Speaker 2>So the bank can afford whatever loan you're taking out.

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<v Speaker 2>But no, there's no age maximum age.

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<v Speaker 1>The next question I want to ask you is how

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<v Speaker 1>do you get out of a low dock loan?

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<v Speaker 2>Don't get one to begin with.

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<v Speaker 1>But there are situations where people are time poor, they've

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<v Speaker 1>got a complicated situation, they're self employed, their money's tied up,

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<v Speaker 1>you know, in assets that can't be liquidated as quickly

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<v Speaker 1>as they planned. You know, it's situational and they've had

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<v Speaker 1>to take that out, and now the situation has calmed

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<v Speaker 1>itself down. How do they unwind that and get back

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<v Speaker 1>to a competitive interest rate? And you go back to that.

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<v Speaker 2>It can be things like starting a new business and

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<v Speaker 2>you know you've only been trading for just over twelve

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<v Speaker 2>months and you haven't got your financials in audio. And

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<v Speaker 2>that's common. So oh, look, it's the same as any

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<v Speaker 2>other refinances. Gathering income documentation, tax returns to see if

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<v Speaker 2>you can then move out of that lowdock line. Ideally

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<v Speaker 2>you want to be if you are in a low

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<v Speaker 2>dock loan. Hopefully you're not on that's got high exit costs.

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<v Speaker 2>High exit costs aren't as common these days when you

0:11:38.559 --> 0:11:43.320
<v Speaker 2>know the furdest establishment fees were banned. Oh god, probably

0:11:43.440 --> 0:11:47.480
<v Speaker 2>teen years ago, now ten years ago. So yeah, look,

0:11:47.520 --> 0:11:49.520
<v Speaker 2>it's just about keeping an eye on it, reviewing your

0:11:49.520 --> 0:11:53.800
<v Speaker 2>finances and the viability of refinancing out to a standardlone,

0:11:54.240 --> 0:11:56.400
<v Speaker 2>which is why you would work with a broker. Yeah.

0:11:57.240 --> 0:11:59.959
<v Speaker 1>Interesting, and so you can actually get out of it.

0:12:00.160 --> 0:12:01.520
<v Speaker 1>Not the end of the world if you are with

0:12:01.559 --> 0:12:04.640
<v Speaker 1>a load doc loan. And obviously for listeners that don't

0:12:04.640 --> 0:12:06.480
<v Speaker 1>know what a load dock loan is, it's a loan

0:12:06.559 --> 0:12:10.640
<v Speaker 1>that you tend to get a brout with less questions

0:12:10.720 --> 0:12:13.679
<v Speaker 1>and therefore pay a higher interest rate and sometimes substantially high.

0:12:13.720 --> 0:12:17.080
<v Speaker 2>Yeah, you're basically not verifying your income through documentation, so

0:12:17.520 --> 0:12:20.040
<v Speaker 2>you need to be self employed, have a registered ABN,

0:12:20.480 --> 0:12:25.240
<v Speaker 2>be registered for GST some instances. Instances you need to

0:12:25.240 --> 0:12:27.600
<v Speaker 2>have been trading for at least two years to qualify

0:12:27.679 --> 0:12:29.559
<v Speaker 2>for load docks. We don't do a lot of load

0:12:29.600 --> 0:12:32.640
<v Speaker 2>dock loans, so it's like a last result it is.

0:12:32.679 --> 0:12:35.120
<v Speaker 2>But again, and it's similar to what I've said in

0:12:35.120 --> 0:12:38.160
<v Speaker 2>the past about lender's mortgage insurance a load doc loan.

0:12:38.280 --> 0:12:41.200
<v Speaker 2>It's an opportunity costeh. If you need it, you need it,

0:12:41.280 --> 0:12:43.240
<v Speaker 2>and that's why it's good. And there's so many different

0:12:44.120 --> 0:12:46.880
<v Speaker 2>a range of different borrowing options out there because there

0:12:46.880 --> 0:12:51.200
<v Speaker 2>are so many different, you know, personal situations that need it.

0:12:52.240 --> 0:12:55.760
<v Speaker 1>Now, one piece of advice you've always given me and

0:12:55.800 --> 0:12:59.360
<v Speaker 1>I've always followed, and this goes back I think we're

0:12:59.480 --> 0:13:03.640
<v Speaker 1>not mid twenties working together, and that is to always

0:13:03.760 --> 0:13:07.320
<v Speaker 1>check your credit rating. And you always said to me

0:13:07.520 --> 0:13:10.400
<v Speaker 1>check it, not because of what my credit rating might be,

0:13:10.480 --> 0:13:15.000
<v Speaker 1>but more about identity theft. Can you explain to everyone

0:13:15.440 --> 0:13:18.400
<v Speaker 1>why you need to know your credit rating and why

0:13:18.440 --> 0:13:20.840
<v Speaker 1>you need to check it on a regular basis.

0:13:21.160 --> 0:13:24.200
<v Speaker 2>Ye, credit rating is one of the first things that

0:13:24.559 --> 0:13:27.760
<v Speaker 2>is checked when you apply for finance these days. So

0:13:27.800 --> 0:13:31.200
<v Speaker 2>it's all online. All of your accounts are linked up

0:13:31.240 --> 0:13:35.319
<v Speaker 2>to your credit file and are showing your repayment history

0:13:35.360 --> 0:13:38.839
<v Speaker 2>each month, credit cards, personal loans, home loans, they're all

0:13:38.880 --> 0:13:42.400
<v Speaker 2>on there. So as if your credit rating is dropping,

0:13:42.480 --> 0:13:46.160
<v Speaker 2>it means you've got some bad repayment history, and as

0:13:46.160 --> 0:13:48.920
<v Speaker 2>you said, identity theft, so it could be for a

0:13:48.960 --> 0:13:51.199
<v Speaker 2>credit card that's on your credit file now that you're

0:13:51.240 --> 0:13:54.680
<v Speaker 2>not even aware of if there's been some identity theft.

0:13:55.280 --> 0:13:58.480
<v Speaker 2>So there's a way that you can actually register for

0:13:59.280 --> 0:14:02.640
<v Speaker 2>credit file up So you've got to Equifax, who you

0:14:02.679 --> 0:14:05.840
<v Speaker 2>can sign up for to get month it's a month

0:14:05.840 --> 0:14:09.320
<v Speaker 2>that your quarterly updates or any alerts on your credit file.

0:14:09.360 --> 0:14:12.280
<v Speaker 2>So if there's something to be concerned about, you can

0:14:12.320 --> 0:14:15.160
<v Speaker 2>get Quifax credit alerts.

0:14:15.840 --> 0:14:18.360
<v Speaker 1>Okay, that's good to know, and that's something I recommend

0:14:18.400 --> 0:14:20.960
<v Speaker 1>everyone take ten minutes out other day to go and do.

0:14:21.040 --> 0:14:23.920
<v Speaker 1>And it's actually quite interesting what you might discover and

0:14:24.000 --> 0:14:27.680
<v Speaker 1>also kind of gamifies your financial health because you can

0:14:27.680 --> 0:14:29.720
<v Speaker 1>look at your score and then come back to it

0:14:29.760 --> 0:14:31.600
<v Speaker 1>in six months time or a year's time and see

0:14:31.640 --> 0:14:34.520
<v Speaker 1>what's improved. You know, is it higher And obviously they

0:14:34.560 --> 0:14:37.000
<v Speaker 1>all vary in how they sort of grade you, but

0:14:37.080 --> 0:14:40.600
<v Speaker 1>it definitely adds a little bit of like healthy competition.

0:14:40.920 --> 0:14:44.479
<v Speaker 2>Yeah, it does, because as I said, when line applications

0:14:44.520 --> 0:14:46.520
<v Speaker 2>are processed now, it's all done online. So as soon

0:14:46.520 --> 0:14:49.720
<v Speaker 2>as the application goes in, get a credit file check,

0:14:49.840 --> 0:14:51.920
<v Speaker 2>so the bank straight away grab that your credit file,

0:14:51.960 --> 0:14:55.120
<v Speaker 2>your credit score, and if you've got a bad score,

0:14:55.240 --> 0:14:58.000
<v Speaker 2>you can get client instantly. They won't even bother looking

0:14:58.000 --> 0:15:00.960
<v Speaker 2>at your application. It's just auto to clim So if

0:15:00.960 --> 0:15:02.480
<v Speaker 2>you're getting ordered a coin, that's bad.

0:15:02.880 --> 0:15:05.480
<v Speaker 1>So you then have I guess the benefit of hindsight

0:15:06.160 --> 0:15:08.680
<v Speaker 1>in checking your credit rating to then improve it before

0:15:08.720 --> 0:15:09.880
<v Speaker 1>you then go and apply.

0:15:10.080 --> 0:15:14.520
<v Speaker 2>Correct because your credit for your credit score is if

0:15:14.520 --> 0:15:16.920
<v Speaker 2>you've got some negative repayment history on any of your

0:15:17.680 --> 0:15:21.720
<v Speaker 2>financial accounts, it'll take it can take up to two

0:15:22.200 --> 0:15:25.280
<v Speaker 2>for that to then clear off your file get your

0:15:25.280 --> 0:15:30.240
<v Speaker 2>score back up, So it's on there for two years

0:15:30.960 --> 0:15:33.880
<v Speaker 2>and that's just bad repayment history. But obviously if you've

0:15:33.920 --> 0:15:37.080
<v Speaker 2>got a default or a judgment, you know they're on

0:15:37.120 --> 0:15:38.080
<v Speaker 2>there for seven years.

0:15:39.360 --> 0:15:43.520
<v Speaker 1>All right, paperwork? I know I always ask this, but

0:15:44.040 --> 0:15:45.920
<v Speaker 1>just to let the listeners know, especially if there's any

0:15:45.960 --> 0:15:49.880
<v Speaker 1>new listeners. What do you need to have from a

0:15:49.880 --> 0:15:52.240
<v Speaker 1>paperwork point of view to apply for a homeland? What

0:15:52.280 --> 0:15:54.040
<v Speaker 1>are you going to tell me if I call you

0:15:54.040 --> 0:15:55.600
<v Speaker 1>and say, adam money to make an appointment, I need

0:15:55.640 --> 0:15:57.280
<v Speaker 1>to refinance or I need to I want to buy

0:15:57.280 --> 0:16:00.000
<v Speaker 1>it home. What's the list of things you're going to ask?

0:16:01.080 --> 0:16:03.240
<v Speaker 2>So let's just do basic. You know, a pair O

0:16:03.360 --> 0:16:08.840
<v Speaker 2>ygen employee. First thing, the most important is one hundred

0:16:08.840 --> 0:16:11.960
<v Speaker 2>points ID ideally a passport and a license, both the

0:16:12.000 --> 0:16:16.880
<v Speaker 2>current last two or three pay slips, bank statements, six

0:16:16.880 --> 0:16:22.080
<v Speaker 2>months worth of bank statements showing your your monthly spending,

0:16:22.160 --> 0:16:27.160
<v Speaker 2>so your monthly habits. That's just a very basic level

0:16:27.320 --> 0:16:28.920
<v Speaker 2>if you're looking to buy it, but if you're looking

0:16:28.960 --> 0:16:31.360
<v Speaker 2>to refinance, then it'd also need months of your homeland

0:16:31.640 --> 0:16:33.920
<v Speaker 2>repayments credit card statements.

0:16:34.200 --> 0:16:36.600
<v Speaker 1>So really not actually that my heart.

0:16:36.400 --> 0:16:39.800
<v Speaker 2>No, it's not at all. It's it only gets deeper

0:16:39.960 --> 0:16:43.520
<v Speaker 2>and more complex if you're you know, in a unique

0:16:43.560 --> 0:16:48.000
<v Speaker 2>employment situation, maybe getting commissions or bonuses or over time,

0:16:50.200 --> 0:16:52.560
<v Speaker 2>in which case then we can look for additional documents

0:16:52.600 --> 0:16:55.480
<v Speaker 2>like you know, your income and your income statements, which

0:16:55.520 --> 0:16:58.320
<v Speaker 2>we used to call group stifficates that the employer would issue.

0:16:58.360 --> 0:17:01.160
<v Speaker 2>That's now linked through your mind go ounce. You can

0:17:01.200 --> 0:17:02.680
<v Speaker 2>download your income statement from there.

0:17:02.760 --> 0:17:04.119
<v Speaker 1>So it's actually pretty easy.

0:17:04.080 --> 0:17:06.880
<v Speaker 2>It is, and there's so much There are so many

0:17:08.359 --> 0:17:10.520
<v Speaker 2>user tools that we've got now to assist with that,

0:17:10.640 --> 0:17:15.280
<v Speaker 2>like data scraping for bank statements, so you basically there's

0:17:15.280 --> 0:17:18.320
<v Speaker 2>a few different providers. They're safe and secure. So just

0:17:18.359 --> 0:17:21.320
<v Speaker 2>to give you a quick idea. Basically, we give our

0:17:21.320 --> 0:17:23.840
<v Speaker 2>clients a link, they jump into the link, log into

0:17:23.880 --> 0:17:26.560
<v Speaker 2>their select with their bank is log in. They're not

0:17:26.600 --> 0:17:29.199
<v Speaker 2>giving their log in details to anyone. They select the

0:17:29.200 --> 0:17:32.280
<v Speaker 2>accounts that they want statements to be sent for, and

0:17:32.320 --> 0:17:37.240
<v Speaker 2>then the system data scrapes those statements and emails those.

0:17:37.359 --> 0:17:39.960
<v Speaker 1>Back to our So it literally takes ten minutes.

0:17:40.440 --> 0:17:40.680
<v Speaker 2>Two.

0:17:40.920 --> 0:17:43.400
<v Speaker 1>Yeah, actually I did this, so I know it does

0:17:43.440 --> 0:17:47.040
<v Speaker 1>take it literally too. All right, you touched on saving statements.

0:17:47.240 --> 0:17:50.600
<v Speaker 1>Do the bank really need to see some savings? And

0:17:50.640 --> 0:17:53.040
<v Speaker 1>obviously they do need to see your your budget or

0:17:53.040 --> 0:17:56.440
<v Speaker 1>your living expenses, but what about situations where you've inherited

0:17:56.480 --> 0:17:58.520
<v Speaker 1>money and that's sort of deposit or you know, you've

0:17:58.560 --> 0:18:01.840
<v Speaker 1>got parents grandparents that have given you some money to

0:18:01.880 --> 0:18:04.959
<v Speaker 1>help pay for your first time Like, where does that

0:18:05.040 --> 0:18:08.240
<v Speaker 1>kind of fit in in the complexities of being able

0:18:08.280 --> 0:18:10.800
<v Speaker 1>to show that you can afford borrow that money you

0:18:10.840 --> 0:18:12.000
<v Speaker 1>can she afford to pay it back.

0:18:12.119 --> 0:18:15.840
<v Speaker 2>Yeah, good question. And you've put a couple of scenarios

0:18:15.880 --> 0:18:20.879
<v Speaker 2>in there that are relevant at the moment because you know,

0:18:20.920 --> 0:18:23.200
<v Speaker 2>we see it, we see it regularly, so first home

0:18:23.240 --> 0:18:27.040
<v Speaker 2>buyers generally need to show genuine savings. When I say

0:18:27.080 --> 0:18:30.959
<v Speaker 2>genuine savings got at least five percent deposit in your

0:18:31.000 --> 0:18:34.960
<v Speaker 2>account for at least six months. However, there are some

0:18:35.040 --> 0:18:40.480
<v Speaker 2>really good borrowing options linked to that now, well, not

0:18:40.520 --> 0:18:44.480
<v Speaker 2>particularly specifically if you're a renter. So if you and

0:18:44.520 --> 0:18:47.840
<v Speaker 2>your partner are renting and you've got her lease through

0:18:47.920 --> 0:18:50.600
<v Speaker 2>a licensed real estate agent, you can verify you then

0:18:50.680 --> 0:18:53.760
<v Speaker 2>paying rent for six months that can be used cover

0:18:53.840 --> 0:18:55.600
<v Speaker 2>the genuine saving argument.

0:18:55.840 --> 0:18:57.639
<v Speaker 1>That's really good to know. They would take a lot

0:18:57.640 --> 0:18:58.800
<v Speaker 1>of stress and pressure of people show.

0:18:59.040 --> 0:19:01.720
<v Speaker 2>Yeah, definitely, because you're right some you know, particularly with

0:19:01.760 --> 0:19:03.440
<v Speaker 2>cost of living at the moment, it's hard for a

0:19:03.440 --> 0:19:06.920
<v Speaker 2>lot of people to say. But if they're given from

0:19:07.000 --> 0:19:11.480
<v Speaker 2>parents or inheritance that they can use as a bonus, yeah, bus,

0:19:12.040 --> 0:19:13.880
<v Speaker 2>you know, then it means there are options to get

0:19:13.920 --> 0:19:17.760
<v Speaker 2>around that genuine savings policy. And it's not available widely

0:19:17.760 --> 0:19:20.840
<v Speaker 2>available everywhere. There's you know, select lenders that oper that

0:19:20.960 --> 0:19:23.400
<v Speaker 2>type of thing, but it's available, that's the.

0:19:23.280 --> 0:19:26.320
<v Speaker 1>Main thing, and that's something you help people out with absolutely.

0:19:26.359 --> 0:19:28.200
<v Speaker 1>I imagine you've come across it on a regular basis

0:19:28.240 --> 0:19:28.600
<v Speaker 1>as well.

0:19:28.720 --> 0:19:31.720
<v Speaker 2>Yeah, most people that are looking to buy have some

0:19:31.800 --> 0:19:35.720
<v Speaker 2>form of savings. You know, it's pretty rare that you

0:19:35.800 --> 0:19:37.800
<v Speaker 2>see someone that doesn't have any savings and they've got

0:19:38.040 --> 0:19:39.720
<v Speaker 2>some want to go and then take out a mortgage

0:19:39.720 --> 0:19:42.800
<v Speaker 2>because it's scary, right if you haven't been able to

0:19:42.800 --> 0:19:44.919
<v Speaker 2>save and you know, how are you're going to afford

0:19:44.920 --> 0:19:49.960
<v Speaker 2>the mortgage. So it's it's rare. But at the same time,

0:19:50.400 --> 0:19:52.200
<v Speaker 2>you know, that's not to say that it doesn't become

0:19:52.200 --> 0:19:54.200
<v Speaker 2>available and someone's been paying a high amount of rent

0:19:54.280 --> 0:19:56.520
<v Speaker 2>over that period that is the equivalent of a mortgage

0:19:56.560 --> 0:20:00.520
<v Speaker 2>as well. So that's where that policy comes into right.

0:20:00.680 --> 0:20:03.480
<v Speaker 1>Previously in other episodes, we've talked about those you know,

0:20:03.600 --> 0:20:07.479
<v Speaker 1>kind of magical formulas that you see maybe people who

0:20:07.480 --> 0:20:09.720
<v Speaker 1>aren't necessarily experience or qualified, saying, you know.

0:20:09.720 --> 0:20:10.760
<v Speaker 2>The ones that don't exist.

0:20:11.000 --> 0:20:13.960
<v Speaker 1>Yeah, well the ones that you know, like, use this

0:20:14.040 --> 0:20:16.080
<v Speaker 1>formula to work out how much you can borrow and

0:20:16.160 --> 0:20:17.719
<v Speaker 1>this is how much the bank will lend you. And

0:20:18.280 --> 0:20:24.000
<v Speaker 1>obviously they are not factually correct. You could loosely say

0:20:24.080 --> 0:20:26.040
<v Speaker 1>use it as a guide, but you know they're actually

0:20:26.160 --> 0:20:30.880
<v Speaker 1>a little bit misleading. What calculators do you recommend people use,

0:20:31.560 --> 0:20:34.320
<v Speaker 1>you know, the stereic clear of the fancy magical formulas,

0:20:34.320 --> 0:20:36.680
<v Speaker 1>which are basically a load of crap. But there are

0:20:36.720 --> 0:20:39.719
<v Speaker 1>calculators online that you can use, you know, on the

0:20:39.800 --> 0:20:42.639
<v Speaker 1>various bank's websites. Which ones do you recommend people use

0:20:42.680 --> 0:20:43.840
<v Speaker 1>if they're thinking.

0:20:43.440 --> 0:20:46.359
<v Speaker 2>About On our website, we've got must be twenty or

0:20:46.400 --> 0:20:48.680
<v Speaker 2>thirty different calculators, so you'll find them all on there.

0:20:50.040 --> 0:20:53.320
<v Speaker 2>You know, how much can I afford, what's my borrowing capacity?

0:20:53.320 --> 0:20:56.960
<v Speaker 2>Things like that. It's good just to play around with,

0:20:57.119 --> 0:21:01.520
<v Speaker 2>but really be serious about buying, go and see a broker. Yeah,

0:21:01.560 --> 0:21:04.440
<v Speaker 2>because all it takes is if you get emotional about

0:21:04.480 --> 0:21:06.800
<v Speaker 2>seeing a property online and you want it, and then

0:21:06.800 --> 0:21:09.080
<v Speaker 2>the real estate agent talks to you and says, I

0:21:09.080 --> 0:21:10.880
<v Speaker 2>don't worry, you can put an offer in and we'll

0:21:10.880 --> 0:21:13.919
<v Speaker 2>give you five days to get your finance ready. You know,

0:21:14.280 --> 0:21:15.959
<v Speaker 2>you should be ahead of all that get a pre

0:21:16.000 --> 0:21:19.640
<v Speaker 2>approval in place. So if you're just being inquisitive about

0:21:19.840 --> 0:21:22.440
<v Speaker 2>what you know you can borrow out of curiosity, sure,

0:21:22.520 --> 0:21:24.240
<v Speaker 2>have a look at the capadors online. But if you're

0:21:24.280 --> 0:21:26.800
<v Speaker 2>really thinking about buying, go and see someone to get

0:21:26.800 --> 0:21:31.000
<v Speaker 2>pre approval in place, because all it takes is to

0:21:31.040 --> 0:21:33.600
<v Speaker 2>get a bit unlucky with some bad timing. Let's say

0:21:33.600 --> 0:21:38.080
<v Speaker 2>you are eligible for a home loan and you qualify

0:21:38.160 --> 0:21:40.520
<v Speaker 2>for a loan that would secure the property of your

0:21:40.560 --> 0:21:43.080
<v Speaker 2>dreams that you're looking at, but you didn't act early

0:21:43.200 --> 0:21:44.879
<v Speaker 2>enough and then you miss out on it because you

0:21:44.920 --> 0:21:47.440
<v Speaker 2>didn't act. So it's not hard and you know you're

0:21:47.440 --> 0:21:50.040
<v Speaker 2>not paying a mortgage broker is not charging you, so

0:21:50.600 --> 0:21:53.880
<v Speaker 2>what's stopping you get pre approval.

0:21:53.640 --> 0:21:56.280
<v Speaker 1>And you should be rocking up to if you're doing

0:21:56.359 --> 0:21:58.680
<v Speaker 1>property inspections, you should have all of those ducks lined

0:21:58.760 --> 0:21:59.960
<v Speaker 1>up so that when you see it up with you

0:22:00.040 --> 0:22:02.280
<v Speaker 1>and you can quickly jump on it because these things

0:22:02.320 --> 0:22:05.080
<v Speaker 1>are time sensitive, especially in a competitive market like this.

0:22:05.119 --> 0:22:08.760
<v Speaker 2>Absolutely, and as a broker who cares, I can tell

0:22:08.800 --> 0:22:13.439
<v Speaker 2>you as well, it's really you know, it's really disappointing

0:22:13.480 --> 0:22:15.800
<v Speaker 2>as a broker if we let a customer down by

0:22:15.840 --> 0:22:18.560
<v Speaker 2>not getting the approval through. The approval through in time.

0:22:19.240 --> 0:22:21.480
<v Speaker 1>So but at the same time, they have to allow

0:22:21.520 --> 0:22:23.720
<v Speaker 1>you the opportunity to get it done in times, rocking

0:22:23.720 --> 0:22:24.320
<v Speaker 1>out the day before.

0:22:24.680 --> 0:22:27.000
<v Speaker 2>But even if they come late, it's still you still

0:22:27.000 --> 0:22:29.720
<v Speaker 2>feel like you haven't been able to deliver, So it's disappointing.

0:22:29.760 --> 0:22:32.560
<v Speaker 2>So yeah, that's why I encourage everyone get in get

0:22:32.560 --> 0:22:35.600
<v Speaker 2>the approval through. There's no fee doing it, So why not?

0:22:36.600 --> 0:22:39.480
<v Speaker 1>Now is there a bank that most people prefer? Like

0:22:39.520 --> 0:22:41.360
<v Speaker 1>do you find people go I hate that bank or

0:22:41.760 --> 0:22:44.119
<v Speaker 1>can we please go with that bank? And the record

0:22:44.160 --> 0:22:47.399
<v Speaker 1>is remind everyone this is not product advice whatsoever. But

0:22:47.760 --> 0:22:49.959
<v Speaker 1>I'm intrigued because there's so much bank bashing going on,

0:22:50.000 --> 0:22:52.760
<v Speaker 1>and I know from financial planning. When I'd say I

0:22:52.760 --> 0:22:55.520
<v Speaker 1>think we should invest in this bank, stop, I'd get

0:22:55.520 --> 0:22:58.040
<v Speaker 1>this like five minute story about how the bank teller

0:22:58.080 --> 0:22:59.600
<v Speaker 1>at this particular bank was route to them and they

0:22:59.640 --> 0:23:02.199
<v Speaker 1>will never invest in that bank ever again, Like is

0:23:02.240 --> 0:23:04.119
<v Speaker 1>that same with mortgages?

0:23:04.480 --> 0:23:09.800
<v Speaker 2>Yeah? Look, there's it all stems to know, experiences, having

0:23:09.800 --> 0:23:12.080
<v Speaker 2>bad experiences for being turned away from the bank and

0:23:12.080 --> 0:23:15.560
<v Speaker 2>then good experiences for being attracted to certain banks. So

0:23:15.680 --> 0:23:20.719
<v Speaker 2>you've got you know, customer satisfaction surveys, you know, who

0:23:20.760 --> 0:23:22.919
<v Speaker 2>are getting which banks are being a highest up that

0:23:23.000 --> 0:23:25.919
<v Speaker 2>list year after year. You know, I see Bend to

0:23:25.920 --> 0:23:27.520
<v Speaker 2>Go and Adelaide Bank are up there quite a bit

0:23:27.520 --> 0:23:29.800
<v Speaker 2>with that. Who I think are a good bank? Macquarie Bank.

0:23:29.840 --> 0:23:32.760
<v Speaker 2>I really like Uncurt You know, it's more the major

0:23:32.800 --> 0:23:35.400
<v Speaker 2>banks that I think customers are turning off because they're

0:23:35.400 --> 0:23:40.600
<v Speaker 2>closing branches refusing to provide offer existing customers better rates.

0:23:42.040 --> 0:23:43.000
<v Speaker 2>I don't want to go into that.

0:23:44.000 --> 0:23:47.119
<v Speaker 1>We're not bank bashing here, That's okay. I'm just intrigued.

0:23:47.680 --> 0:23:50.360
<v Speaker 2>That was my question, and the chops and changes too,

0:23:50.400 --> 0:23:53.520
<v Speaker 2>because you know, banks and non majors or second tier lenders,

0:23:53.520 --> 0:23:57.000
<v Speaker 2>they all go through different periods of seeking market share,

0:23:57.920 --> 0:24:02.080
<v Speaker 2>and whether that be the reporting the shareholders or just

0:24:02.200 --> 0:24:05.400
<v Speaker 2>timing of wanting to take on more market share, they

0:24:05.400 --> 0:24:08.159
<v Speaker 2>come out with more aggressive offers, better rates, better offers,

0:24:08.560 --> 0:24:11.560
<v Speaker 2>discounted fees and things like that, and with that they

0:24:11.600 --> 0:24:12.280
<v Speaker 2>become popular.

0:24:13.760 --> 0:24:15.439
<v Speaker 1>All right. The next question I have for you is

0:24:15.960 --> 0:24:17.880
<v Speaker 1>I know the answer to this, and I was horrified

0:24:17.880 --> 0:24:20.560
<v Speaker 1>when I saw this question, but as I promise people

0:24:20.560 --> 0:24:23.239
<v Speaker 1>who DM me the questions on Instagram for you, I

0:24:23.359 --> 0:24:26.040
<v Speaker 1>have to pass them on to you. And this question

0:24:26.240 --> 0:24:28.600
<v Speaker 1>is can a home loan be paid with a credit

0:24:28.600 --> 0:24:31.480
<v Speaker 1>card in order to maximize my credit card points?

0:24:32.160 --> 0:24:37.600
<v Speaker 2>Finally, no, unfortunately not And look at it probably gets

0:24:37.600 --> 0:24:39.520
<v Speaker 2>to the point where it did you know you'd have

0:24:39.560 --> 0:24:42.760
<v Speaker 2>your fees associated with doing it that would make it

0:24:42.840 --> 0:24:46.200
<v Speaker 2>not worth while you're basically purchasing points.

0:24:46.640 --> 0:24:49.080
<v Speaker 1>All right. Next question is can you include stamp duty?

0:24:49.119 --> 0:24:50.400
<v Speaker 1>In your mortgage application.

0:24:51.400 --> 0:24:53.560
<v Speaker 2>I'm a bit confused by that because you have to

0:24:53.600 --> 0:24:57.040
<v Speaker 2>include stamp duty if you're buying. So yeah, it's all

0:24:57.400 --> 0:25:02.119
<v Speaker 2>we're when we're assisting clients with a purchase, all the

0:25:02.200 --> 0:25:05.440
<v Speaker 2>fees and charges are inclusive in our proposal. The last

0:25:05.480 --> 0:25:08.120
<v Speaker 2>thing we want to do is miss or overlook.

0:25:07.800 --> 0:25:09.800
<v Speaker 1>Stamped You to forget about stamp That would be nice

0:25:09.800 --> 0:25:12.000
<v Speaker 1>to forget about stamp duty, but it is a very

0:25:12.040 --> 0:25:15.040
<v Speaker 1>expensive entry to property, all right. The other question I

0:25:15.080 --> 0:25:18.960
<v Speaker 1>received was when it comes to recommend it recommending consolidating

0:25:19.080 --> 0:25:21.879
<v Speaker 1>bad debt, you know, such as outstanding credit cards that

0:25:22.000 --> 0:25:23.760
<v Speaker 1>just don't seem to be ever you can never get

0:25:23.760 --> 0:25:26.720
<v Speaker 1>on top of, or you know, buy now, pay later

0:25:26.800 --> 0:25:30.720
<v Speaker 1>that's caught you by surprise, or even like personal ozed

0:25:30.760 --> 0:25:34.359
<v Speaker 1>car loans that have you just not quite gone to plan.

0:25:35.040 --> 0:25:36.879
<v Speaker 1>How do you make sure that you if you're going

0:25:36.920 --> 0:25:38.639
<v Speaker 1>to consolidate them, how do you make sure that you

0:25:38.680 --> 0:25:41.280
<v Speaker 1>don't I guess, repeat history, or you make sure that

0:25:41.320 --> 0:25:44.080
<v Speaker 1>you actually get back on top of your finances again.

0:25:44.160 --> 0:25:47.240
<v Speaker 2>Look, the I would say, you know, just thinking about

0:25:47.440 --> 0:25:51.240
<v Speaker 2>the you know, deciding when the time is to consolidate them. Say,

0:25:51.240 --> 0:25:53.600
<v Speaker 2>for example, you've got a credit card and all you're

0:25:53.640 --> 0:25:55.760
<v Speaker 2>doing is making the minimum payment each month on that

0:25:55.880 --> 0:25:59.280
<v Speaker 2>and not making inroads to reducing it faster. That would

0:25:59.280 --> 0:26:01.760
<v Speaker 2>indicate to me that it's going to take you ten

0:26:01.840 --> 0:26:05.040
<v Speaker 2>years to pay off that credit card. So twenty two

0:26:05.040 --> 0:26:08.720
<v Speaker 2>percent interests that's not good. No, So that'd be the

0:26:08.760 --> 0:26:11.960
<v Speaker 2>time if you're not making anything more than the minimum payments.

0:26:13.119 --> 0:26:15.080
<v Speaker 2>If you're looking to do it, ideally, you'd want to

0:26:15.119 --> 0:26:17.720
<v Speaker 2>do it in a separate loan split to your home loan.

0:26:19.320 --> 0:26:22.560
<v Speaker 2>Consoliding those into the one home loan is okay if

0:26:22.640 --> 0:26:25.480
<v Speaker 2>you start making inroads, but it's good well more, particularly

0:26:25.480 --> 0:26:27.840
<v Speaker 2>if we're talking about a car loan it's sold the carline.

0:26:27.840 --> 0:26:29.240
<v Speaker 2>You don't want to be paying a car loan off

0:26:29.240 --> 0:26:32.080
<v Speaker 2>over thirty years gosh. So separating the two I like

0:26:32.119 --> 0:26:34.600
<v Speaker 2>to recommend so that you can aggressively try and pay

0:26:34.600 --> 0:26:37.000
<v Speaker 2>the car loan or the consolidation loan off faster.

0:26:37.200 --> 0:26:39.720
<v Speaker 1>It also makes you more honest because consolidating into the

0:26:39.720 --> 0:26:43.520
<v Speaker 1>homelan will and I'm purely thinking about the psychology of money here. Yeah,

0:26:43.920 --> 0:26:47.440
<v Speaker 1>it kind of like sweeps it under the map, the Yeah,

0:26:47.480 --> 0:26:49.600
<v Speaker 1>whereas you can see that loan sitting there separately, and

0:26:49.640 --> 0:26:52.480
<v Speaker 1>it's almost like, you know, a bit of a flick

0:26:52.520 --> 0:26:55.919
<v Speaker 1>where you're like, Okay, that's the raw reality of my

0:26:56.320 --> 0:26:58.840
<v Speaker 1>silly purchase of a car that's appreciating asset that I

0:26:58.880 --> 0:27:01.840
<v Speaker 1>borrow it and should have done. I'll take ownership of that,

0:27:01.960 --> 0:27:03.840
<v Speaker 1>learn and grow and be wiser. So I must pay

0:27:03.840 --> 0:27:05.400
<v Speaker 1>that off as quickly as possible as a priority.

0:27:05.560 --> 0:27:09.160
<v Speaker 2>Definitely great points. Yeah, being responsible and there decisions you made,

0:27:09.920 --> 0:27:12.000
<v Speaker 2>so yeah, if you're hiding it into your mortgage, you're right,

0:27:12.119 --> 0:27:13.120
<v Speaker 2>it's the truth. Hurt.

0:27:13.240 --> 0:27:15.359
<v Speaker 1>But this is where we learn the most about money,

0:27:15.400 --> 0:27:18.520
<v Speaker 1>and you know we're open to it. Become wiser and smarter.

0:27:18.800 --> 0:27:21.000
<v Speaker 1>All right. The next, second, last question, This was a

0:27:21.080 --> 0:27:24.240
<v Speaker 1>brilliant question and it was from someone who has ADHD

0:27:24.920 --> 0:27:27.800
<v Speaker 1>like myself, and I thought the discussion was brilliant. Why

0:27:27.840 --> 0:27:31.560
<v Speaker 1>hadn't thought of this asking this myself to help reduce temptation? Well,

0:27:31.600 --> 0:27:35.920
<v Speaker 1>remove temptation? Can you reduce your limits slash available funds

0:27:36.160 --> 0:27:39.320
<v Speaker 1>so that you don't get tempted to spend it? This

0:27:39.400 --> 0:27:43.199
<v Speaker 1>would be a strategy for people with ADHD in managing

0:27:43.240 --> 0:27:43.879
<v Speaker 1>their mortgage.

0:27:44.000 --> 0:27:47.600
<v Speaker 2>Yes you can. It's just a fine call to your bank. Basically,

0:27:47.640 --> 0:27:49.880
<v Speaker 2>requesting them to reduce the limit. And you know, that's

0:27:49.880 --> 0:27:51.679
<v Speaker 2>if you don't want to do debt recycling, because if

0:27:51.680 --> 0:27:54.000
<v Speaker 2>you've built up that redraw in your line by paying

0:27:54.040 --> 0:27:56.640
<v Speaker 2>additional lump times off, that's great. If you don't want

0:27:56.640 --> 0:27:59.119
<v Speaker 2>to debt recycle, call the bank up, get them to

0:27:59.119 --> 0:28:01.680
<v Speaker 2>reduce the limit. Downside to that is that if you

0:28:01.760 --> 0:28:04.000
<v Speaker 2>then had an emergency and needed the money, you can't

0:28:04.000 --> 0:28:04.360
<v Speaker 2>get it.

0:28:04.320 --> 0:28:07.680
<v Speaker 1>Back, you would reapply that to reapply, that's right.

0:28:07.760 --> 0:28:10.960
<v Speaker 2>But if you're doing it to reduce temptation stop that spending,

0:28:11.000 --> 0:28:13.160
<v Speaker 2>then yeah, that's certainly an option. You can just call

0:28:13.200 --> 0:28:13.840
<v Speaker 2>and cancel it.

0:28:13.960 --> 0:28:16.520
<v Speaker 1>Yeah, and you don't have to reduce all that remove

0:28:16.560 --> 0:28:18.000
<v Speaker 1>all of that money. You might have to say seventy

0:28:18.040 --> 0:28:20.920
<v Speaker 1>thousand dollars in your redraw facility or offset account. You

0:28:20.960 --> 0:28:23.240
<v Speaker 1>might reduce it by fifty thousand, so you still have

0:28:23.280 --> 0:28:26.119
<v Speaker 1>twenty there. Correct then, but it is definitely I would

0:28:26.200 --> 0:28:29.359
<v Speaker 1>imagine a great way of just removing that temptation or

0:28:29.359 --> 0:28:32.639
<v Speaker 1>reducing that temptation to go and blow it. And you know,

0:28:32.800 --> 0:28:34.320
<v Speaker 1>but obviously got to make sure you still have your

0:28:34.320 --> 0:28:35.520
<v Speaker 1>emergency money set aside.

0:28:35.560 --> 0:28:38.360
<v Speaker 2>One d per and that's when you see people paying

0:28:38.360 --> 0:28:40.800
<v Speaker 2>off their line really quickly, getting rid of redraw without

0:28:40.800 --> 0:28:43.520
<v Speaker 2>spending it or using it, because you generally find find.

0:28:43.280 --> 0:28:45.479
<v Speaker 1>A way well, there's always something to go.

0:28:45.800 --> 0:28:49.040
<v Speaker 2>Percent of the market would find a way to spend.

0:28:48.800 --> 0:28:52.040
<v Speaker 1>It, exactly. And look, I have myself personally before I

0:28:52.080 --> 0:28:54.000
<v Speaker 1>met Tom and before we combine our flandswer is that

0:28:54.080 --> 0:28:56.400
<v Speaker 1>something I definitely did was every six months I would

0:28:56.400 --> 0:28:58.160
<v Speaker 1>call the bank and say, can you just reduce it?

0:28:58.200 --> 0:29:00.000
<v Speaker 1>And I was only ever asking like small amounts like

0:29:00.120 --> 0:29:02.480
<v Speaker 1>ten fifteen thousand dollars at a time. And I remember

0:29:02.760 --> 0:29:04.840
<v Speaker 1>the consult saying you're sure about this, and I was like, yes,

0:29:04.880 --> 0:29:06.040
<v Speaker 1>please reduce it.

0:29:06.520 --> 0:29:10.120
<v Speaker 2>On a handbag, sorry, because you had your on a handbag.

0:29:10.360 --> 0:29:13.480
<v Speaker 1>Yes, that is true, but you know, sometimes a handbag

0:29:13.520 --> 0:29:16.680
<v Speaker 1>is very much in a necessity and I will admit

0:29:16.720 --> 0:29:20.160
<v Speaker 1>some of my handbag's actually gone up in value. Now.

0:29:20.480 --> 0:29:22.800
<v Speaker 1>The final question is is what are your thoughts on

0:29:22.840 --> 0:29:25.800
<v Speaker 1>credit cards with home loans where you put everything on

0:29:25.840 --> 0:29:27.840
<v Speaker 1>a credit card and then pay it off the end

0:29:27.880 --> 0:29:30.760
<v Speaker 1>of the month. Does it really work in reality or

0:29:30.760 --> 0:29:34.040
<v Speaker 1>do people spend way more and not really get ahead,

0:29:34.040 --> 0:29:36.080
<v Speaker 1>Which is actually the perfect question coming off the back

0:29:36.120 --> 0:29:36.840
<v Speaker 1>of our last one.

0:29:37.200 --> 0:29:40.000
<v Speaker 2>Yeah, and these are the conversations I like to have

0:29:40.040 --> 0:29:42.560
<v Speaker 2>as well. It does work, but it doesn't work, and

0:29:42.600 --> 0:29:48.120
<v Speaker 2>we out no, well, it works if you're a good budget.

0:29:48.320 --> 0:29:51.320
<v Speaker 2>If you don't budget and you spend more than it

0:29:51.360 --> 0:29:53.640
<v Speaker 2>doesn't work because if you use it properly, you earn

0:29:53.680 --> 0:29:56.280
<v Speaker 2>points on your card, you save interest on your homeland

0:29:56.320 --> 0:29:58.800
<v Speaker 2>because your wages are sitting in your officet account or

0:29:58.800 --> 0:30:03.120
<v Speaker 2>your redrawal. But I'd always recommend getting a credit card

0:30:03.160 --> 0:30:07.240
<v Speaker 2>limit that is equal to your monthly living expenses budget,

0:30:07.680 --> 0:30:10.640
<v Speaker 2>so that basically that's the thing that stops you from

0:30:10.680 --> 0:30:14.080
<v Speaker 2>going over. But you know, it's not as encouraged. I

0:30:14.120 --> 0:30:16.440
<v Speaker 2>don't encourage it as much as I used to because

0:30:16.480 --> 0:30:20.120
<v Speaker 2>of the in reality it's not being used to its

0:30:20.520 --> 0:30:23.160
<v Speaker 2>full effect. So you don't trust yourself with a credit

0:30:23.200 --> 0:30:25.680
<v Speaker 2>card and you're one of those people that can't pay

0:30:25.680 --> 0:30:26.640
<v Speaker 2>it off in full every month.

0:30:27.800 --> 0:30:30.160
<v Speaker 1>Probably not for you, I have to say, as a

0:30:30.200 --> 0:30:35.200
<v Speaker 1>financial planner, not once have I ever seen this strategy work.

0:30:36.040 --> 0:30:40.200
<v Speaker 1>Everyone spends more and they have this kind of laser

0:30:40.280 --> 0:30:43.200
<v Speaker 1>fair squandalous mindset where they're like, it's fine to put

0:30:43.240 --> 0:30:45.320
<v Speaker 1>on the credit card, and each month the credit card

0:30:45.840 --> 0:30:47.920
<v Speaker 1>bill is getting bigger and bigger because they have this

0:30:48.120 --> 0:30:50.120
<v Speaker 1>like so wid it's fine, just put it on the

0:30:50.160 --> 0:30:54.440
<v Speaker 1>credit card mentality, and quickly things spiral out of control.

0:30:54.520 --> 0:30:57.040
<v Speaker 1>And it's not until you know things going wrong where

0:30:57.040 --> 0:31:00.640
<v Speaker 1>credit cards being hit with interest charges and eight fees

0:31:00.720 --> 0:31:03.360
<v Speaker 1>and you know there's not enough to eat the mortgage repayment,

0:31:03.560 --> 0:31:05.720
<v Speaker 1>and you know they put their hands up panicking, We've

0:31:05.760 --> 0:31:08.320
<v Speaker 1>got to just strip everything, go back and essentially go

0:31:08.360 --> 0:31:11.760
<v Speaker 1>back to simplicity. So and yes, they've got a whole points,

0:31:11.800 --> 0:31:13.520
<v Speaker 1>but they can't afford to go on the holiday and

0:31:13.600 --> 0:31:15.600
<v Speaker 1>use those points because they've you know, this got them

0:31:15.640 --> 0:31:18.520
<v Speaker 1>into a really sticky situation. But I mean that is

0:31:18.640 --> 0:31:21.120
<v Speaker 1>my personal experience, and I don't say that in a

0:31:21.160 --> 0:31:23.520
<v Speaker 1>negative way, but I say it just I guess a

0:31:24.120 --> 0:31:26.760
<v Speaker 1>word of warning to listeners, like be careful of this.

0:31:27.280 --> 0:31:29.520
<v Speaker 1>I don't. I think that's a very clever product created

0:31:29.560 --> 0:31:32.640
<v Speaker 1>by the bank and you know, very smart, clever people

0:31:32.640 --> 0:31:34.360
<v Speaker 1>and marketing teams sitting around a boardroom.

0:31:34.480 --> 0:31:37.400
<v Speaker 2>But and then they send out automatic limiting crease.

0:31:38.640 --> 0:31:40.640
<v Speaker 1>Yeah, it just it just I've seen it backfire, and

0:31:40.680 --> 0:31:43.760
<v Speaker 1>I'm probably aggressively passionate about why I don't think it works.

0:31:43.800 --> 0:31:47.560
<v Speaker 1>And I like simplicity, but yeah, it's on paper it

0:31:47.600 --> 0:31:48.040
<v Speaker 1>does work.

0:31:48.240 --> 0:31:50.680
<v Speaker 2>Yeah, and look I see a lot more than you obviously,

0:31:50.680 --> 0:31:53.920
<v Speaker 2>so I do see a lot that work. But yeah,

0:31:55.320 --> 0:31:58.160
<v Speaker 2>it's not it's not something that you can hang your

0:31:58.200 --> 0:32:00.760
<v Speaker 2>hat on that's going to get you well well ahead

0:32:00.760 --> 0:32:03.600
<v Speaker 2>on your mortgage. So it's only small, small bit tier

0:32:03.680 --> 0:32:05.400
<v Speaker 2>in there. But so if you're not very good with

0:32:05.440 --> 0:32:07.400
<v Speaker 2>credit cards and budgeting, don't do it.

0:32:08.400 --> 0:32:10.200
<v Speaker 1>All right, Adam, As always, thank you so much for

0:32:10.240 --> 0:32:13.320
<v Speaker 1>coming in this morning. It's always I love these conversations

0:32:13.360 --> 0:32:14.920
<v Speaker 1>with you, as I do never I hope you up

0:32:14.920 --> 0:32:17.160
<v Speaker 1>the phone and cally, which is all the time. But

0:32:17.320 --> 0:32:20.400
<v Speaker 1>these are such valuable bits of information and you know,

0:32:20.480 --> 0:32:23.040
<v Speaker 1>nuggets of golden words of wisdom to impart with all

0:32:23.040 --> 0:32:26.400
<v Speaker 1>the listeners about how to use their mortgage wisely, how

0:32:26.400 --> 0:32:28.800
<v Speaker 1>to actually use their mortgage to get ahead financially, how

0:32:28.880 --> 0:32:30.800
<v Speaker 1>to achieve their goals and dreams, but also how to

0:32:30.800 --> 0:32:34.520
<v Speaker 1>achieve them in a sensible, wise proactive way that really

0:32:34.520 --> 0:32:36.760
<v Speaker 1>does help make a big difference. So thank you so

0:32:36.880 --> 0:32:38.800
<v Speaker 1>much for taking your time out of the day to

0:32:38.840 --> 0:32:41.840
<v Speaker 1>come in and you know, answer everyone's questions as part

0:32:41.880 --> 0:32:43.040
<v Speaker 1>of our ask Adams.

0:32:42.760 --> 0:32:43.680
<v Speaker 2>Thanks for having me Kenna.

0:32:43.680 --> 0:32:45.960
<v Speaker 1>I love it, and as always, if anyone wants to

0:32:45.960 --> 0:32:48.360
<v Speaker 1>speak to Adam, please feel free to reach out directly

0:32:48.400 --> 0:32:50.880
<v Speaker 1>to him his email and mobile phone number. I'll pop

0:32:50.920 --> 0:32:53.640
<v Speaker 1>in the podcast notes. So, and did it remind you

0:32:53.720 --> 0:32:56.840
<v Speaker 1>I have absolutely nothing, no benefit at all? Actually I will.

0:32:56.920 --> 0:32:59.800
<v Speaker 1>I will admit Adam shoutowed me a free coffee this morning.

0:33:00.120 --> 0:33:02.360
<v Speaker 1>That will be the one benefit that I get from

0:33:02.360 --> 0:33:05.160
<v Speaker 1>this episode and all my others. But please have a

0:33:05.240 --> 0:33:09.520
<v Speaker 1>complete upfront transparency around that. And again to remind everyone

0:33:09.520 --> 0:33:11.880
<v Speaker 1>that everything we talk about is for educational purposes only

0:33:11.920 --> 0:33:15.120
<v Speaker 1>and general advice. Now, everyone, thank you so much for

0:33:15.160 --> 0:33:17.959
<v Speaker 1>listening to this morning's episode on Sugar Mama's Fireplay. If

0:33:17.960 --> 0:33:19.560
<v Speaker 1>you can take a moment to leave me a rating

0:33:19.600 --> 0:33:22.720
<v Speaker 1>and a review, I would greatly appreciate it. And in

0:33:22.760 --> 0:33:27.040
<v Speaker 1>the meantime, please stay motivated, empowered, and never stop seeking

0:33:27.200 --> 0:33:30.240
<v Speaker 1>new ways to achieve your financial goals and dreams, no

0:33:30.280 --> 0:33:32.680
<v Speaker 1>matter how big or how small they may be. I

0:33:32.800 --> 0:33:57.200
<v Speaker 1>believe in you, and this is Sugar Mama's Fireplay