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Speaker 1: But morning everyone, and welcome back to Sugar Mama's Fireplay.

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Speaker 1: I am your host financial planner Canna Campbell, and today

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Speaker 1: we're talking about refinancing, the free financing one O one,

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Speaker 1: When you need to refinance, why you should be refinancing,

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Speaker 1: and how to do it properly to make sure that

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Speaker 1: you save tens of thousands of dollars maybe even one

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Speaker 1: hundreds of thousands of dollars off your mortgage, that money

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Speaker 1: that can then be channeled into other areas in your

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Speaker 1: financial well being. And of course we are joined by

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Speaker 1: mortgage expert John Mikolzzi from Blue Lanton Home Loans. Now,

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Speaker 1: as you're aware, we often have Adam in here. We

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Speaker 1: have we're mixing things up a little bit with John,

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Speaker 1: who has the equal amount of experience. And for the record,

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Speaker 1: I have been using Blue Lantern myself for many years.

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Speaker 1: I know the team. I've known them for like almost

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Speaker 1: close to I think eighteen years, and there is a

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Speaker 1: reason why I had them on the show. It is

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Speaker 1: because I know how good they are. I know how

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Speaker 1: reliable they are, how to apparent they are, how trustworthy

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Speaker 1: they are, and of course how good they are at

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Speaker 1: actually helping make sure that you get on top of

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Speaker 1: your home loan and you actually see it come down

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Speaker 1: over time because unlike a lot of mortgage brokers and banks,

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Speaker 1: they offer ongoing service which costs you absolutely nothing. And

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Speaker 1: just so you know, should you decide you want to

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Speaker 1: reach out to John from Blue Lantern, I get absolutely

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Speaker 1: zero benefit or incentive to do so whatsoever. The only

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Speaker 1: benefit I get is sleeping well at night knowing that

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Speaker 1: you are finally in some good hands. And I love

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Speaker 1: it when you guys message me to say thank you

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Speaker 1: for passing on contact details and I hear about how

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Speaker 1: much they've been able to help you save and how

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Speaker 1: much time and the relief of your back. So please

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Speaker 1: keep those messages that coming in because it really makes

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Speaker 1: me feel happy. And of course I will to continue

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Speaker 1: on working on finding other great contacts in other areas

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Speaker 1: of personal finance to make sure that we are all

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Speaker 1: heading in the right direction so you can actually apply

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Speaker 1: everything you're learning in your life. All right, Okay, again,

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Speaker 1: if a quick reminder, everything in these episodes on Sugar

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Speaker 1: Mons fireplay is always general in nature and for educational

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Speaker 1: purposes only. But today we want to talk about with

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Speaker 1: John refinancing because a lot of people have mortgages, and

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Speaker 1: a lot of people want to understand their mortgages and

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Speaker 1: save money. So sometimes the best way if you're not

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Speaker 1: going to get given a mortgage rate cut and just

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Speaker 1: right cut, is to go and find one yourself. And

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Speaker 1: that is where refinancing comes in. So that enough to

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Speaker 1: hear from me. Let's hear from John. I'm talking about refinancing. John,

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Speaker 1: Thank you for coming on today.

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Speaker 2: Thank you, Ken.

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Speaker 1: Can we just get straight into this for the listeners,

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Speaker 1: because I know so many people will get overwhelmed with

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Speaker 1: the idea of refinancing, not knowing when it's the right time.

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Speaker 1: Is it too soon?

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Speaker 2: You know?

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Speaker 1: Is there going to be damaged to my credit if

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Speaker 1: I apply to refinanced it gets knocked back? Can we

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Speaker 1: can we just go back to the basics, the one

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Speaker 1: I want of refinancing and explain first of all, what

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Speaker 1: refinancing your homeone actually means and how it works.

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Speaker 2: Okay, So refinancing is when you change your existing mortgage

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Speaker 2: from one lender to another. Okay, Obviously it pays only

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Speaker 2: to that if you're going if you're going to save money.

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Speaker 2: You know, most people come on the property journey, you know,

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Speaker 2: they get the property they get the loan and then

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Speaker 2: you know, refinance can come after that. The key difference is,

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Speaker 2: you know, when you're buying a property, there's a contract

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Speaker 2: of sale. Sometimes the price is unknown all the very end.

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Speaker 2: The loan amount is unknownt the very end, whereas with

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Speaker 2: the refinance, the property is known, the loan amount is known.

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Speaker 2: So therefore it's a case of doing the numbers as

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Speaker 2: to whether refinancing puts you in a better financial position

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Speaker 2: than staying with your current lender.

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Speaker 1: When is the right time to consider refinancing, because you know,

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Speaker 1: some people may have even taken out of homeland six

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Speaker 1: months ago. Is that too soon or do they need

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Speaker 1: to be Is there a sweet spot where they're the

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Speaker 1: biggest savings of say five years in or is it

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Speaker 1: even further like when when do you know it's It's

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Speaker 1: a hard one even as a financial plan, I think,

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Speaker 1: but when do we need to shop around?

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Speaker 2: Okay? So we with our clients, we have an annual

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Speaker 2: review process. Okay, so, and that's free.

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Speaker 1: That's part of the service, part of the service, And

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Speaker 1: that's what I explained at the beginning of this episode.

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Speaker 1: People do not understand how valuable that is.

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Speaker 2: Yea, so so that's that's part of the service. So

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Speaker 2: at least once a year, you know, check in understand

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Speaker 2: where your loan is at, questions such as is it

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Speaker 2: the right rate? Does it still meet your needs? Okay,

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Speaker 2: So it's not all about rate.

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Speaker 1: Yeah, it's just a good point because, like the setup

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Speaker 1: of a home loan is really important. And that's why

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Speaker 1: I say the right get set up the right way

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Speaker 1: the first time.

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Speaker 2: Yeah, exactly. So things like annual package fees can get

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Speaker 2: away from you and you forget about them. But then

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Speaker 2: if you understand that there are better options out there,

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Speaker 2: it can make a significant difference.

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Speaker 1: Definitely, Okay. So what are the key benefits then in refuncing?

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Speaker 1: What is the driving motivation for me to pick up

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Speaker 1: the phone and call a mortgage broker or call you

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Speaker 1: or call my bank?

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Speaker 2: The key one is comfort? Okay. So through the process,

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Speaker 2: and you may not refinance right, but at least through

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Speaker 2: the process you'll understand is it the best rate that

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Speaker 2: I can get at the moment? Is it optimal? Does

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Speaker 2: the loan still and the banking features still meet my needs? Right?

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Speaker 2: And that to have that comfort and to understand where

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Speaker 2: you're at is critical, okay, And then only when you

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Speaker 2: do that, can you understand if you actually need to refinance? Okay,

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Speaker 2: and so on, one flows through to the other.

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Speaker 1: It's interesting you say that. The other day someone messaged

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Speaker 1: me on Instagram to say that they did your seven

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Speaker 1: day mortgage challenge at the beginning of the year, and

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Speaker 1: they said they always thought they were being over charged

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Speaker 1: for their home loan on the industry they were paying,

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Speaker 1: but in doing this particular challenge and making the phone

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Speaker 1: calls and doing some research, they actually realize they're at

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Speaker 1: a really competitive rate, and all of a sudden they

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Speaker 1: felt this sense, as you said, of comfort, knowing actually

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Speaker 1: I'm on a great rate, and then of course from

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Speaker 1: comfort comes a sense of gratitude as well. So it

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Speaker 1: was really interesting hearing that feedback from them, and it

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Speaker 1: obviously had a positive impact on how they continue on

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Speaker 1: to work with their mortgage and they now know that

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Speaker 1: what to look for when it comes to it potentially

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Speaker 1: being time below the signs when it's time to refine it. So,

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Speaker 1: I mean, obviously you said comfort, but then of course refinancing.

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Speaker 1: You know, obviously we're all licensed. We need to make

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Speaker 1: sure that we put every single customer or client into

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Speaker 1: a better financial position in order to be able to

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Speaker 1: justify making tweaks and changes and using various financial products.

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Speaker 1: Surely that comes in after comfort actual savings.

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Speaker 2: Absolutely absolutely. As I said, if you go, if you

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Speaker 2: start the process, then the process will tell you whether

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Speaker 2: you need to refinance or not, right if you ask

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Speaker 2: the questions, if you have a good look at it,

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Speaker 2: and there's a balance, right, so you know, you don't

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Speaker 2: want a broker constantly recommending refinances for their needs because

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Speaker 2: they are you know, clipping the ticket on commission. But

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Speaker 2: then you also don't want the other end of the

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Speaker 2: spectrum where some brokers are lazy and don't refinance you

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Speaker 2: because they're just happy to for the loan to sit

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Speaker 2: there and chase new clients. So it's about understanding, you know,

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Speaker 2: the broker, what their drivers are, how client focused they are,

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Speaker 2: and then going through the process yourself, asking the questions, yourself,

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Speaker 2: going through that mortgage health check process, and then determining

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Speaker 2: whether you should look at a refinance.

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Speaker 1: Okay, all right, do you have any examples of you know,

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Speaker 1: how much you've been able to help people save by

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Speaker 1: refinancing and the impact of having to do a little

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Speaker 1: bit of hard work and obviously the data gathering and

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Speaker 1: form filling.

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Speaker 2: Well, it's it's not that hard work. It's these days

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Speaker 2: a lot of the documents are electronic and they can

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Speaker 2: just be emailed or uploaded. We've got a portal now

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Speaker 2: where everyone gets a personalized portal and they're just uploaded.

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Speaker 2: So that's one I think that's one important myth that

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Speaker 2: if we can try and get it to that myth today,

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Speaker 2: that'd be great because it's I don't believe it's statifical

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Speaker 2: in this day and age.

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Speaker 1: I have to say, as a long lover and client

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Speaker 1: of Blue Lantern, I rarely have to do anything because

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Speaker 1: you have so much data on me. It's not like

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Speaker 1: I'm you know, that's a great thing about that ongoing services.

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Speaker 1: You already have eighty five percent of the stuff for

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Speaker 1: me anyway, Yeah, because you've got all my files and

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Speaker 1: it's just literally sometimes a two second job.

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Speaker 2: That's right to do it. And going back to the

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Speaker 2: example that I was going to quote, So I had

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Speaker 2: I had clients who I mean these clients very busy

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Speaker 2: people and they are they probably will call them unicorns.

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Speaker 2: They had a rate with their existing bank of seven

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Speaker 2: point seven percent, and.

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Speaker 1: I feel sick.

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Speaker 2: Well, they because they were using offsets. They thought, oh, well,

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Speaker 2: it's not that impactful. They thought they were too busy.

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Speaker 2: And I just said, okay, even though you're not my

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Speaker 2: client yet, to build a relationship with you, I'm going

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Speaker 2: to talk to your existing bank on your behalf and

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Speaker 2: get that rate down for you without you having to

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Speaker 2: do a thing. And so I got that rate down

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Speaker 2: to six point one five.

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Speaker 1: I hope they sent you're a really nice bottle of wine.

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Speaker 2: Not yet, I'm still waiting.

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Speaker 1: But that savings is huge.

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Speaker 2: It's massive, and it's massive because they wanted to do

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Speaker 2: something else and the actual high rate was stopping them

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Speaker 2: doing something else. They wanted to buy a property for

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Speaker 2: their daughter. And then by managing that process and it's

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Speaker 2: technically not a refinance because they didn't change banks, but

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Speaker 2: by going through the process and me helping them, were

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Speaker 2: able to drop rate, create borrowing capacity, and then achieve

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Speaker 2: their objective of you buying the property for their daughter

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Speaker 2: without without too much change to their existing banking structure.

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Speaker 1: And I guess that's another benefit of ter refinancing, because

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Speaker 1: the bank's numbers on the new figures being lower makes

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Speaker 1: your situation look at It is obviously a lot more comfortable.

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Speaker 1: That's right, and you can do other things. You can

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Speaker 1: look at it, you know exactly, and an investment alone

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Speaker 1: attaching to that because you've got your serviceability is now

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Speaker 1: so much better. But the significantly lower interest rate like that.

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Speaker 2: That's right, that's right. So that's why we started talking

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Speaker 2: about the fact that, yes, rate is important, but it's

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Speaker 2: not just about the rate. Through the process, you know,

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Speaker 2: you can look at things and go, okay, well I've

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Speaker 2: retired some debt. Do I recycle that debt? Or do

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Speaker 2: I now look at consolidating other debts? So there's a

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Speaker 2: there's a bigger picture through the process that can save

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Speaker 2: you money in the mortgage its own right, but then

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Speaker 2: save you money will make you money outside of the

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Speaker 2: mortgage as well.

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Speaker 1: Okay, can we go through the process of refinancing because

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Speaker 1: obviously you've spoke about and that was a refinancing of

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Speaker 1: someone's existing loan facility with their bank, and you went

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Speaker 1: to fight the bank on their behalf and obviously did

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Speaker 1: an exceptional job. What about you know, someone who's got

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Speaker 1: five years into their home loan. Yep, Like, what does

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Speaker 1: that process look like? Because a lot of people think

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Speaker 1: refinancing is going to be. And I know this perception

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Speaker 1: is completely wrong and flawed, but they think it's going

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Speaker 1: to be. You know, Oh god, I've got to digging

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Speaker 1: through my paperwork and you know it's not. Can we

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Speaker 1: talk about how smooth and efficient this is sure, and

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Speaker 1: even the time involved taken?

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Speaker 2: Okay, So if you are a PAYG employee, if you

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Speaker 2: get a pay slip, if you can give me two

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Speaker 2: forms of identity, that one I would need a scanned

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Speaker 2: copy of the hard copy because banks don't accept digital

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Speaker 2: copies yet, but that's easier if I can do that

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Speaker 2: on their phone. Yeah, send me a photo of it.

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Speaker 2: It's that simple. Two pay slips, loan statements and credit

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Speaker 2: card statements, complete, a fact find done, I can refinance you.

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Speaker 2: So that that shouldn't take anyone more than an hour.

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Speaker 1: Yeah. I actually have all those documents saved on my

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Speaker 1: phone already, because there's always situations where someone needs something

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Speaker 1: from you.

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Speaker 2: All I say is I wish every client was like, I'm.

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Speaker 1: Sounding really OCD.

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Speaker 2: I realized, no, it's actually a good point. I maybe

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Speaker 2: this is a good platform to do it. I try

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Speaker 2: when I talk to people, I always try to be

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Speaker 2: financed ready, you know, have your identity documents saved somewhere

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Speaker 2: where it's safe electronically. Know how to get your pay

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Speaker 2: slips bank statements is easy if you if you're set

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Speaker 2: up for restatements with your bank, we can send you

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Speaker 2: a link at the bank statements come automatically to us.

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Speaker 2: So it's not that hard to be finance ready for

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Speaker 2: refinance or for any other type of finance for that matter.

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Speaker 1: I know for myself, the reason why I have it

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Speaker 1: organized like this is I'm time poor, you know, three kids,

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Speaker 1: my partner's away, you know, away overseas fifty percent of

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Speaker 1: the time. And if I don't do it then and

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Speaker 1: there in the minute, it's going to take four or

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Speaker 1: five weeks for me to get it back to someone.

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Speaker 1: So if I can literally just access it, you know,

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Speaker 1: and I literally have a file in my phone in

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Speaker 1: my photos and it's named so, and I know that

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Speaker 1: in that as a photograph of our Medicare card or

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Speaker 1: of private health insurance, my tax phile numbers, my abns,

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Speaker 1: like every single document, even the kids immunization statements. Because

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Speaker 1: there's always a situation where you go, you know what,

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Speaker 1: I can tick this off my list of things to

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Speaker 1: do immediately on the spot and it's done, and it

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Speaker 1: just it saves me so much space in my brain.

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Speaker 1: And you know, I have someone who I have ADHD,

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Speaker 1: so I can very easily get distracted and I can

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Speaker 1: have over a thousand excuses to procrastinate. But just having

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Speaker 1: this is just it's been really helpful in making me

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Speaker 1: stay on top of the family finances whilst juggling a

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Speaker 1: lot of different balls in the air. So it's a simple,

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Speaker 1: easy hack. Use your phone obviously, break shure, it's protected

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Speaker 1: and safe and secure. But you know, again, it means

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Speaker 1: that you know you're going to start saving money sooner.

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Speaker 2: Exactly exactly, And I think you and I I'll do

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Speaker 2: a higher standard. I think your listeners, my clients would

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Speaker 2: expect that we would be organized. Yeah, because we're not organized, Well,

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Speaker 2: how can we help them be organized?

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Speaker 1: So okay, you made me feel safe. Thank you for

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Speaker 1: being a socity about But you know, these simple things

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Speaker 1: that do make life run smoothly, and it takes seconds

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Speaker 1: to set up, and once you've set it up on

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Speaker 1: the go, Like the other day, I literally uploaded Apples

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Speaker 1: immunization certificate into my phone. You know, I was like, great,

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Speaker 1: is now there? All right? So so moving on with

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Speaker 1: this process. So you know that data, you know identification process,

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Speaker 1: Then what comes that? Do I need to give you

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Speaker 1: a budget? Do I need to you know, give you

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Speaker 1: get someone to get access to the home to value it?

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Speaker 1: Like where how does it go from there to I

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Speaker 1: want from start to end the whole process.

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Speaker 2: So once once I have that financial information including your

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Speaker 2: fact fine, so that's where you would have to share

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Speaker 2: with me living expenses because that's an important part of

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Speaker 2: borrowing capacity. Once I assess, then if there is benefit

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Speaker 2: in doing the refinance, I will put three lenders to you.

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Speaker 2: Because the important thing to note is broke as a

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Speaker 2: hell to a higher standard. Then if you go to

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Speaker 2: a bank, a banker I needs to talk about their products.

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Speaker 2: We have to provide you three options.

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Speaker 1: Really I didn't know that, Yes we do.

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Speaker 2: Okay, that's interesting, Yes, very interesting. So when it comes

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Speaker 2: to time saving, I'll talk about that later on. So

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Speaker 2: then the way I do it is I work with

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Speaker 2: the clients to help them understand why a certain lender

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Speaker 2: is the best option, and then the house needs to

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Speaker 2: be valued. Property needs to be valued. A lot of

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Speaker 2: valuations these days are electronic, so you don't even have

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Speaker 2: to have a valuer come around and inspect the property.

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Speaker 2: It's done via data, so if you're lucky enough that

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Speaker 2: you don't need that, you won't even have to worry

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Speaker 2: about that, and then the loan would be submitted, assessed,

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Speaker 2: should be approved. The only manual part of it is

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Speaker 2: actually leaving your current bank in that all banks have

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Speaker 2: a manual discharge form you have to sign where you

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Speaker 2: have to print it out, wet sign it and scan it. Okay,

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Speaker 2: so if you need help with printing, I'll help you

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Speaker 2: with that as well. But once you get me the

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Speaker 2: hard copy or the scanned copy, then I'll do that

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Speaker 2: on your behalf as well.

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Speaker 1: And just for the record, you guys work with people

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Speaker 1: across the country, yes, and occasionally ever seas as well.

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Speaker 2: Yes.

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Speaker 1: Yeah, so it doesn't matter you don't think, well, we're

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Speaker 1: not based in Sydney, John can't help us. That's not

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Speaker 1: the case at all. In fact, everything is done pretty

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Speaker 1: much online anyway.

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Speaker 2: Most things are electronic and digital. And also we will

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Speaker 2: try and make the process as easy as possible for you.

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Speaker 2: Believe me, if we could avoid you signing a bas

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Speaker 2: of paper, we would, But you know, some institutions need

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Speaker 2: certain pieces of paper signed, but it's getting rare these days.

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Speaker 1: Yeah, I mean, and as all this is, the whole

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Speaker 1: thing is about efficiency. Yes, can we talk about the

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Speaker 1: cost it does it cost to engage with a mortgage broker?

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Speaker 1: How do they get paid? How do you get paid?

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Speaker 1: Like a hat so that people can understand, like it's

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Speaker 1: the transparency here.

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Speaker 2: Well, our firm we do not charge any fees. So

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Speaker 2: we have a simple business model whereby if you like

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Speaker 2: what we do and we're successful and in getting a

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Speaker 2: loan for you, we get paid by the lender and

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Speaker 2: that is at no cost to you. And in fact,

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Speaker 2: we would back ourselves that in most cases you actually

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Speaker 2: end up with a better outcome than if you did

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Speaker 2: it yourself going to a lender.

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Speaker 1: Wow, I like the set of that. Then can you

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Speaker 1: talk me through some common mistakes people make and pitfalls?

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Speaker 1: Like where things have you've seen people go wrong?

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Speaker 2: Yeah? Well not with us, I don't usually the previous

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Speaker 2: broker that we're taking over it. No, I'm sure wonderful shop.

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Speaker 1: I mean I've seen I you know, from my financial

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Speaker 1: planning practice, I've seen all sorts of doozies that I've

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Speaker 1: had to get you guys to help clean up with

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Speaker 1: other what other brokers had messed up.

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Speaker 2: So firstly, the thing is to understand that there are

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Speaker 2: costs of things, right, so there are. There shouldn't be

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Speaker 2: any hidden costs. They should be outlined to you, which

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Speaker 2: is part of our job. Okay, So the costs are.

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Speaker 2: There will be discharge free from your current bank, then

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Speaker 2: there will be some minor government charges for changing the

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Speaker 2: mortgage holder, and then there may be an application fee

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Speaker 2: from the incoming lender. So what need what needs to

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Speaker 2: be clearly demonstrated to anyone is that even with those costs,

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Speaker 2: the benefit of refinancing is over and above those costs. Okay.

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Speaker 2: So that's the first mistake people make is people don't

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Speaker 2: factor in those costs. Second, and then therefore they've changed

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Speaker 2: for no apparent benefit or the cost outweighs the benefit.

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Speaker 2: The big one is people that restart their loan term.

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Speaker 1: Yes, I'm glad that you mentioned this, because this is

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Speaker 1: where people end up just chasing their tail. They just

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Speaker 1: refinance to another thirty year term. And of course there

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Speaker 1: are situations where you have no choice but to make

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Speaker 1: to get the load approved, you need to sign a

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Speaker 1: new thirty year term. But don't make don't stick to that,

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Speaker 1: try and maintain those repayments or increase those repayments.

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Speaker 2: So there is So this is really important, right because

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Speaker 2: and let me explain it to people. So if you have,

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Speaker 2: if you're currently twenty eight years into your loan term,

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Speaker 2: to reset it to thirty is actually like having a

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Speaker 2: thirty two year loan. That's what you're doing. You're starting,

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Speaker 2: You're you're not in. You're not starting any gown backwards. Yeah, okay,

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Speaker 2: So that's the first issue. The set second issue is

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Speaker 2: that all that interest you've paid in the first two years,

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Speaker 2: you're paying again. So if you don't manage that, if

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Speaker 2: you just let that loan run its full thirty year term,

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Speaker 2: you will pay on an eight hundred fifty thousand dollar alone,

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Speaker 2: you will pay an extra eighty thousand dollars.

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Speaker 1: Wow, that is a pretty serious pitfall.

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Speaker 2: If you ask me, yes, and now I understand your

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Speaker 2: listeners are would be had all different loan sizes, and

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Speaker 2: if they're saying, well, at eight hundred and fifty thousand alone,

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Speaker 2: I would never get an eight hundred five thousand alone. Well,

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Speaker 2: let's look at a five hundred thousand doll alone on

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Speaker 2: a five hundred thousand alone, restarting the term. The extra

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Speaker 2: interest you're paying is forty seven thousand dollars.

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Speaker 1: Okay, well you heard here first, and this has been

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Speaker 1: beautifully explained by Johnson. Thank you. What about knowing whether

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Speaker 1: you're on the right home loan, you know, when it

402
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Speaker 1: comes to refinancing, how do you feel in your gut

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Speaker 1: that this is actually the right move. You've got to

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Speaker 1: regret because some people are quite emotionally tied to their banks.

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Speaker 2: Don't My simple answer is, and I suppose it's easy

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Speaker 2: for me, except the every day, don't be emotionally tied

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Speaker 2: to it. It's it's the mortgage is the vehicle to

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Speaker 2: your dreams. It's not the dream, right. And so I've

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Speaker 2: had people say, you know, I'm a X bank person

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Speaker 2: or I'm a X bank person, and I just go,

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Speaker 2: what do you what are you doing? Do you really

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Speaker 2: think that bank is sitting there going, yeah, well, we

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Speaker 2: love you person, we're thinking about you. They're not going

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Speaker 2: to assure you.

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Speaker 1: And you've got to be streets mut well, yeah.

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Speaker 2: Whatever term people want to use, but I would I

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Speaker 2: would take gut out of it. And it's it's a

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Speaker 2: it's a financial equation. It's as simple as that.

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Speaker 1: I think sometimes people think, oh, you know, but I

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Speaker 1: got all my direct debits set up, I'm going to

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Speaker 1: change banks, I'm going to have to get a new

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Speaker 1: ATM card, you know, update all my details and suscriptions.

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Speaker 1: And it's actually that mindset is completely wrong. If he's

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Speaker 1: just that mindset is costing you a huge man money.

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Speaker 2: The best way you can help people is by giving

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Speaker 2: me examples. Okay, so I've quoted this example before and

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Speaker 2: it's a very good example in that I had a

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Speaker 2: client who came off a fixed period. They got a

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Speaker 2: decent offer of a rate from their current lender, and

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Speaker 2: this is this is one of my clients. So I

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Speaker 2: do refinance my own clients if the situation is right,

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Speaker 2: but it's always on the basis of I'll put the

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Speaker 2: numbers to the client and then we make the decision together.

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Speaker 2: I never forced them to do anything. I just make

435
00:22:33,640 --> 00:22:38,439
Speaker 2: them understand it and so improve the rate slightly. The

436
00:22:38,440 --> 00:22:42,520
Speaker 2: big kicker was no annual package fee, multiple offset accounts,

437
00:22:43,200 --> 00:22:47,640
Speaker 2: and by putting all that together, the refinance is going

438
00:22:47,680 --> 00:22:52,119
Speaker 2: to save them. Forecast somewhere in the vicinity between forty

439
00:22:52,160 --> 00:22:55,480
Speaker 2: five to one hundred thousand dollars over the life of

440
00:22:55,520 --> 00:23:02,520
Speaker 2: the loan, right And so so when people say to me, oh,

441
00:23:02,520 --> 00:23:05,280
Speaker 2: I don't want to change my direct debits, you know

442
00:23:05,440 --> 00:23:10,639
Speaker 2: it's too hard. Just so, well, the value, the gift

443
00:23:11,480 --> 00:23:15,600
Speaker 2: positive reinforcement of doing it is these savings in front

444
00:23:15,600 --> 00:23:18,119
Speaker 2: of you, right, So then by putting the numbers in

445
00:23:18,119 --> 00:23:21,919
Speaker 2: front of people, then that should be be a motivator.

446
00:23:22,040 --> 00:23:25,160
Speaker 1: Yeah, and as someone who's recently refinanced, is actually really

447
00:23:25,240 --> 00:23:27,160
Speaker 1: not that hard. You just look at your direct debits

448
00:23:27,760 --> 00:23:29,639
Speaker 1: and a lot of it's done not even with a

449
00:23:29,640 --> 00:23:33,160
Speaker 1: phone call, it's done online. And if you miss one,

450
00:23:33,240 --> 00:23:35,639
Speaker 1: you always get a notification this is dis bounced or

451
00:23:35,680 --> 00:23:37,720
Speaker 1: this didn't go through all this is outstanding. You then know, okay,

452
00:23:37,800 --> 00:23:39,720
Speaker 1: miss that one. I can go and update my new details.

453
00:23:39,720 --> 00:23:41,840
Speaker 1: Now it really doesn't we're making it out to be

454
00:23:41,840 --> 00:23:43,520
Speaker 1: a bigger job than what it is in our heads.

455
00:23:43,760 --> 00:23:46,320
Speaker 2: And not to steal your thunder, but I've had clients

456
00:23:46,359 --> 00:23:48,040
Speaker 2: who when they've gone through the process, they've gone to

457
00:23:48,040 --> 00:23:49,400
Speaker 2: off save money because I had on all these direct

458
00:23:49,400 --> 00:23:51,160
Speaker 2: debits that I didn't know what I was paying for,

459
00:23:51,680 --> 00:23:53,960
Speaker 2: and I've just canceled them and now I've saved more money.

460
00:23:54,000 --> 00:23:58,639
Speaker 1: So well telling them to reply that to about frayments. Okay,

461
00:23:58,680 --> 00:24:01,399
Speaker 1: And finally, you know, like what do you think of

462
00:24:01,720 --> 00:24:04,560
Speaker 1: people trying to do it themselves? Think do people actually

463
00:24:05,760 --> 00:24:08,560
Speaker 1: try and do their own lending? Like, I mean, how

464
00:24:10,200 --> 00:24:13,119
Speaker 1: someone's got way more time than they have they to

465
00:24:13,160 --> 00:24:14,480
Speaker 1: go and try and do that homely, But to people

466
00:24:14,480 --> 00:24:16,400
Speaker 1: actually have a go at doing this themselves.

467
00:24:16,040 --> 00:24:18,680
Speaker 2: Yeah, yeah they do so. So currently seventy percent of

468
00:24:18,720 --> 00:24:21,199
Speaker 2: loans in Australia are managed by a mortgage broker. So

469
00:24:21,240 --> 00:24:24,040
Speaker 2: therefore three out of every ten people are still doing

470
00:24:24,040 --> 00:24:27,360
Speaker 2: it themselves. And that's okay, that's that's their choice. Okay.

471
00:24:27,560 --> 00:24:31,720
Speaker 2: So but again I can't stress enough that if you

472
00:24:31,760 --> 00:24:34,720
Speaker 2: do it yourself, then you are going to a lender

473
00:24:34,800 --> 00:24:38,719
Speaker 2: and their only obligation is to their organization where they

474
00:24:38,800 --> 00:24:41,639
Speaker 2: just have to explain their products and services, whereas brokers

475
00:24:41,680 --> 00:24:43,439
Speaker 2: are held to a higher standard and we have to

476
00:24:43,760 --> 00:24:46,320
Speaker 2: find the best deal and give you three options.

477
00:24:46,840 --> 00:24:48,719
Speaker 1: Okay, simple as that.

478
00:24:49,000 --> 00:24:54,600
Speaker 2: Yeah. Two, we do the work for you right and work,

479
00:24:54,720 --> 00:24:58,400
Speaker 2: I mean that important part of doing the mortgage health

480
00:24:58,480 --> 00:25:01,040
Speaker 2: check first, right, that way, then you get you should

481
00:25:01,040 --> 00:25:02,520
Speaker 2: get a better understanding. Or if you're go and do

482
00:25:02,560 --> 00:25:07,040
Speaker 2: it refinance, why okay, some other things as well. People

483
00:25:07,080 --> 00:25:10,040
Speaker 2: need to know. So if you want to shop the market,

484
00:25:10,640 --> 00:25:12,480
Speaker 2: you want to go to three lenders, well that's three

485
00:25:12,520 --> 00:25:15,720
Speaker 2: times the work for you. Whereas you're dealing with one broker, it's.

486
00:25:15,600 --> 00:25:16,960
Speaker 1: They're doing it on your bar. If you're like a

487
00:25:16,960 --> 00:25:18,520
Speaker 1: private you are like a personal shopper.

488
00:25:18,600 --> 00:25:19,640
Speaker 2: That's right, that's right.

489
00:25:20,840 --> 00:25:22,920
Speaker 1: And the personal shopper that does you're shopping every single

490
00:25:23,000 --> 00:25:23,479
Speaker 1: year for you.

491
00:25:23,600 --> 00:25:26,320
Speaker 2: That's right, that's right, checks that the goods are still

492
00:25:26,640 --> 00:25:29,360
Speaker 2: working for you. Yeah, if that makes sense. There's another

493
00:25:29,400 --> 00:25:34,320
Speaker 2: important aspect to you that people often don't understand that

494
00:25:34,440 --> 00:25:37,120
Speaker 2: everyone in Australia who has saw credit, has a credit file,

495
00:25:37,160 --> 00:25:41,359
Speaker 2: has a credit score, has a credit report, and if

496
00:25:41,520 --> 00:25:45,320
Speaker 2: you go and apply with three different lenders, that harms

497
00:25:45,320 --> 00:25:48,199
Speaker 2: your credit score because it looks like you are getting

498
00:25:48,359 --> 00:25:52,400
Speaker 2: declined for loans and then your credit score will diminish.

499
00:25:52,560 --> 00:25:56,800
Speaker 2: Whereas as brokers, we can do the assessment without before

500
00:25:56,840 --> 00:25:58,639
Speaker 2: we even apply to a bank. We can tell you

501
00:25:58,680 --> 00:26:01,359
Speaker 2: the answer even before we apply. So that's a critical

502
00:26:01,680 --> 00:26:06,320
Speaker 2: something critical that people aren't aware of. And people do

503
00:26:06,400 --> 00:26:10,240
Speaker 2: it themselves and apply for credit too much. Sometimes I

504
00:26:10,280 --> 00:26:12,679
Speaker 2: have to look at their credit file and it is.

505
00:26:12,720 --> 00:26:15,600
Speaker 2: There's no better word than a train wreck. And then

506
00:26:16,480 --> 00:26:19,879
Speaker 2: getting finance and really good deals is very difficult because

507
00:26:19,920 --> 00:26:21,440
Speaker 2: they've wrecked their own credit file.

508
00:26:22,040 --> 00:26:26,320
Speaker 1: Oh god, that's definitely a pitfull a mistake. All right, Look,

509
00:26:27,040 --> 00:26:29,240
Speaker 1: everything you've shared has been so incredibly insightful, and I

510
00:26:29,280 --> 00:26:31,199
Speaker 1: feel like I have learned so much as well and

511
00:26:31,240 --> 00:26:35,479
Speaker 1: myself and I feel motivated to obviously keep working on

512
00:26:35,480 --> 00:26:37,119
Speaker 1: my mortgage and make sure that if we have a

513
00:26:37,160 --> 00:26:39,640
Speaker 1: refinance again, if we do it in the right way,

514
00:26:39,640 --> 00:26:41,680
Speaker 1: into our financial advantage. And I love what you guys

515
00:26:41,720 --> 00:26:44,680
Speaker 1: do and the guidance and the education that you give

516
00:26:44,680 --> 00:26:48,119
Speaker 1: all of your customers and clients, including my own. As

517
00:26:48,200 --> 00:26:50,240
Speaker 1: we wrap up this episode, can you just share with

518
00:26:50,359 --> 00:26:54,080
Speaker 1: us one final piece of advice to someone who is

519
00:26:54,200 --> 00:26:58,080
Speaker 1: thinking about it might be time to look at refinancing.

520
00:26:58,200 --> 00:27:00,880
Speaker 1: What is the one piece of valuable advice in part

521
00:27:00,960 --> 00:27:02,040
Speaker 1: right now, do.

522
00:27:02,000 --> 00:27:06,280
Speaker 2: A mortgage health check, check your own mortgage and then

523
00:27:06,480 --> 00:27:08,920
Speaker 2: understand whether it's it's still meeting your.

524
00:27:08,840 --> 00:27:13,200
Speaker 1: Needs, and if you aren't quite sure, reach out.

525
00:27:13,440 --> 00:27:15,919
Speaker 2: Reach out so you know, a problem shared is a

526
00:27:15,920 --> 00:27:19,920
Speaker 2: problem halved. And also you know, well we will look

527
00:27:19,920 --> 00:27:23,800
Speaker 2: at it dispassionately and from a from a numbers perspective

528
00:27:24,240 --> 00:27:26,359
Speaker 2: and put those numbers in front of you so that

529
00:27:26,400 --> 00:27:29,840
Speaker 2: you can make an informed decision as to whether whether

530
00:27:29,880 --> 00:27:31,280
Speaker 2: it's worth refinancing or not.

531
00:27:31,920 --> 00:27:35,280
Speaker 1: And again coming back to that comfort knowing you know

532
00:27:35,400 --> 00:27:37,320
Speaker 1: you've had someone look at it and it's okay or

533
00:27:37,320 --> 00:27:39,920
Speaker 1: it's not, and what to do about it, and when

534
00:27:39,960 --> 00:27:41,960
Speaker 1: to do something about it, and if that means coming

535
00:27:42,000 --> 00:27:44,520
Speaker 1: back to you in six months time or getting stuck

536
00:27:44,520 --> 00:27:47,440
Speaker 1: into it straight away and getting it fixed immediately. These

537
00:27:47,480 --> 00:27:49,479
Speaker 1: are these are a really important building box that are

538
00:27:49,480 --> 00:27:51,720
Speaker 1: going to get you back on track in your whole

539
00:27:51,880 --> 00:27:53,800
Speaker 1: entire financial well being.

540
00:27:54,240 --> 00:27:56,119
Speaker 2: Yeah, so it's it's a good point. So I have

541
00:27:56,119 --> 00:27:58,880
Speaker 2: a client who they're coming off the fixed period. They

542
00:27:58,960 --> 00:28:04,040
Speaker 2: can't refinance yet because he's just changed jobs. And so

543
00:28:04,119 --> 00:28:06,560
Speaker 2: what what I've done is get the best possible rate

544
00:28:06,720 --> 00:28:09,520
Speaker 2: from his current lender, which could be better. But then

545
00:28:09,720 --> 00:28:14,600
Speaker 2: we've diarised that once he has enough enough over time

546
00:28:14,640 --> 00:28:16,879
Speaker 2: on his pace slips, we'll come back to it and

547
00:28:16,920 --> 00:28:20,320
Speaker 2: then and then look at the refinance refinance again. So

548
00:28:21,160 --> 00:28:23,680
Speaker 2: I think we've talked about this before. That's we're getting

549
00:28:23,720 --> 00:28:27,840
Speaker 2: into the into the realm of I'm almost like his

550
00:28:28,000 --> 00:28:30,720
Speaker 2: sort of personal fitness trainer where instead of just him

551
00:28:30,760 --> 00:28:34,639
Speaker 2: relying on himself doing the push ups, I'm there pushing

552
00:28:34,680 --> 00:28:35,160
Speaker 2: in a lot.

553
00:28:37,680 --> 00:28:38,920
Speaker 1: Bortgage reduction coach.

554
00:28:40,240 --> 00:28:43,320
Speaker 2: I'd like to think. So, I'd like to think, so, look.

555
00:28:43,200 --> 00:28:47,840
Speaker 1: Thank you so much for coming in today and imparting

556
00:28:47,880 --> 00:28:50,520
Speaker 1: all this wisdom and this important information for people to

557
00:28:50,560 --> 00:28:54,200
Speaker 1: see the value of refinancing and asking for a better deal,

558
00:28:54,320 --> 00:28:57,320
Speaker 1: getting a better deal, making sure you are not being

559
00:28:57,400 --> 00:29:00,360
Speaker 1: ripped off, to be perfectly honest, and you're actually using

560
00:29:00,400 --> 00:29:04,480
Speaker 1: your money wisely and getting ahead. You know, everyone is

561
00:29:04,600 --> 00:29:07,720
Speaker 1: worthy and entitled to financial harmony in their lives, and

562
00:29:08,000 --> 00:29:10,800
Speaker 1: the mortgage is one of the biggest stresses on most

563
00:29:11,000 --> 00:29:13,400
Speaker 1: Australian households right now, but it's one where we can

564
00:29:13,440 --> 00:29:16,240
Speaker 1: actually do a lot of very easy things and a

565
00:29:16,280 --> 00:29:19,560
Speaker 1: lot of different things to have a huge impact in

566
00:29:19,640 --> 00:29:22,480
Speaker 1: making headwinds and making a reduction that stress and getting

567
00:29:22,480 --> 00:29:24,520
Speaker 1: that feeling of progress again and being back in the

568
00:29:24,560 --> 00:29:27,600
Speaker 1: driving seat. So, you know, John, thank you so much

569
00:29:27,640 --> 00:29:30,600
Speaker 1: for coming. You know, I greatly appreciated. Now for every

570
00:29:30,640 --> 00:29:32,160
Speaker 1: of you want who's listening thinks you know what, I

571
00:29:32,200 --> 00:29:34,080
Speaker 1: need to give John a call. He needs to have

572
00:29:34,120 --> 00:29:35,680
Speaker 1: a look at what we're doing and where we're going

573
00:29:35,680 --> 00:29:37,760
Speaker 1: wrong and what we could be doing better. I will

574
00:29:37,760 --> 00:29:40,320
Speaker 1: link in the podcast notes his email address and his

575
00:29:40,440 --> 00:29:43,160
Speaker 1: contact number, so by all means, pick up the phone,

576
00:29:43,200 --> 00:29:45,120
Speaker 1: give him a call, have a chat, because he can

577
00:29:45,160 --> 00:29:47,520
Speaker 1: speak to you about doing a health check of your

578
00:29:47,520 --> 00:29:50,920
Speaker 1: mortgage for you, of course for free. In the meantime, everyone,

579
00:29:50,960 --> 00:29:53,600
Speaker 1: I'm wishing you a fabulous week. I hope that that

580
00:29:53,640 --> 00:29:57,640
Speaker 1: financial fire burns bright within and of course we will

581
00:29:57,640 --> 00:30:00,800
Speaker 1: connect again next Monday morning on shore my Mama's five

582
00:30:01,320 --> 00:30:01,840
Speaker 1: Chaponel