WEBVTT - Is refinancing really worth it? $200,000+ worth of savings from this! 0:00:00.040 --> 0:00:03.279 But morning everyone, and welcome back to Sugar Mama's Fireplay. 0:00:03.320 --> 0:00:06.080 I am your host financial planner Canna Campbell, and today 0:00:06.080 --> 0:00:12.360 we're talking about refinancing, the free financing one O one, 0:00:13.240 --> 0:00:16.000 When you need to refinance, why you should be refinancing, 0:00:16.040 --> 0:00:18.759 and how to do it properly to make sure that 0:00:18.800 --> 0:00:21.479 you save tens of thousands of dollars maybe even one 0:00:21.520 --> 0:00:25.160 hundreds of thousands of dollars off your mortgage, that money 0:00:25.160 --> 0:00:27.520 that can then be channeled into other areas in your 0:00:27.560 --> 0:00:31.000 financial well being. And of course we are joined by 0:00:31.200 --> 0:00:36.080 mortgage expert John Mikolzzi from Blue Lanton Home Loans. Now, 0:00:36.360 --> 0:00:38.440 as you're aware, we often have Adam in here. We 0:00:38.520 --> 0:00:40.880 have we're mixing things up a little bit with John, 0:00:40.920 --> 0:00:44.159 who has the equal amount of experience. And for the record, 0:00:44.680 --> 0:00:47.880 I have been using Blue Lantern myself for many years. 0:00:47.920 --> 0:00:50.440 I know the team. I've known them for like almost 0:00:50.560 --> 0:00:53.320 close to I think eighteen years, and there is a 0:00:53.320 --> 0:00:55.600 reason why I had them on the show. It is 0:00:55.680 --> 0:00:58.800 because I know how good they are. I know how 0:00:58.840 --> 0:01:01.720 reliable they are, how to apparent they are, how trustworthy 0:01:01.800 --> 0:01:04.240 they are, and of course how good they are at 0:01:04.240 --> 0:01:07.680 actually helping make sure that you get on top of 0:01:07.760 --> 0:01:10.280 your home loan and you actually see it come down 0:01:10.360 --> 0:01:13.840 over time because unlike a lot of mortgage brokers and banks, 0:01:14.240 --> 0:01:17.760 they offer ongoing service which costs you absolutely nothing. And 0:01:17.840 --> 0:01:19.360 just so you know, should you decide you want to 0:01:19.400 --> 0:01:23.319 reach out to John from Blue Lantern, I get absolutely 0:01:23.600 --> 0:01:27.040 zero benefit or incentive to do so whatsoever. The only 0:01:27.160 --> 0:01:29.280 benefit I get is sleeping well at night knowing that 0:01:29.319 --> 0:01:32.959 you are finally in some good hands. And I love 0:01:33.000 --> 0:01:34.800 it when you guys message me to say thank you 0:01:34.840 --> 0:01:37.440 for passing on contact details and I hear about how 0:01:37.480 --> 0:01:39.400 much they've been able to help you save and how 0:01:39.480 --> 0:01:41.959 much time and the relief of your back. So please 0:01:42.040 --> 0:01:44.800 keep those messages that coming in because it really makes 0:01:44.800 --> 0:01:47.080 me feel happy. And of course I will to continue 0:01:47.080 --> 0:01:50.360 on working on finding other great contacts in other areas 0:01:50.400 --> 0:01:52.560 of personal finance to make sure that we are all 0:01:52.600 --> 0:01:54.480 heading in the right direction so you can actually apply 0:01:54.600 --> 0:01:58.360 everything you're learning in your life. All right, Okay, again, 0:01:58.560 --> 0:02:01.600 if a quick reminder, everything in these episodes on Sugar 0:02:01.640 --> 0:02:04.200 Mons fireplay is always general in nature and for educational 0:02:04.200 --> 0:02:07.120 purposes only. But today we want to talk about with 0:02:07.320 --> 0:02:11.440 John refinancing because a lot of people have mortgages, and 0:02:11.480 --> 0:02:13.760 a lot of people want to understand their mortgages and 0:02:13.800 --> 0:02:16.920 save money. So sometimes the best way if you're not 0:02:16.919 --> 0:02:18.760 going to get given a mortgage rate cut and just 0:02:18.840 --> 0:02:21.320 right cut, is to go and find one yourself. And 0:02:21.360 --> 0:02:25.400 that is where refinancing comes in. So that enough to 0:02:25.440 --> 0:02:29.280 hear from me. Let's hear from John. I'm talking about refinancing. John, 0:02:29.480 --> 0:02:30.959 Thank you for coming on today. 0:02:31.120 --> 0:02:31.600 Thank you, Ken. 0:02:32.160 --> 0:02:34.200 Can we just get straight into this for the listeners, 0:02:34.240 --> 0:02:36.239 because I know so many people will get overwhelmed with 0:02:36.280 --> 0:02:38.880 the idea of refinancing, not knowing when it's the right time. 0:02:38.960 --> 0:02:39.640 Is it too soon? 0:02:40.240 --> 0:02:40.440 You know? 0:02:41.000 --> 0:02:42.600 Is there going to be damaged to my credit if 0:02:42.639 --> 0:02:45.000 I apply to refinanced it gets knocked back? Can we 0:02:45.400 --> 0:02:47.560 can we just go back to the basics, the one 0:02:47.560 --> 0:02:50.520 I want of refinancing and explain first of all, what 0:02:50.680 --> 0:02:54.040 refinancing your homeone actually means and how it works. 0:02:54.320 --> 0:03:01.640 Okay, So refinancing is when you change your existing mortgage 0:03:02.560 --> 0:03:08.399 from one lender to another. Okay, Obviously it pays only 0:03:08.440 --> 0:03:10.359 to that if you're going if you're going to save money. 0:03:10.760 --> 0:03:13.640 You know, most people come on the property journey, you know, 0:03:13.680 --> 0:03:17.440 they get the property they get the loan and then 0:03:18.080 --> 0:03:22.880 you know, refinance can come after that. The key difference is, 0:03:23.080 --> 0:03:25.080 you know, when you're buying a property, there's a contract 0:03:25.120 --> 0:03:27.919 of sale. Sometimes the price is unknown all the very end. 0:03:27.960 --> 0:03:29.679 The loan amount is unknownt the very end, whereas with 0:03:29.760 --> 0:03:33.480 the refinance, the property is known, the loan amount is known. 0:03:34.320 --> 0:03:36.240 So therefore it's a case of doing the numbers as 0:03:36.280 --> 0:03:40.400 to whether refinancing puts you in a better financial position 0:03:40.480 --> 0:03:42.280 than staying with your current lender. 0:03:43.000 --> 0:03:46.600 When is the right time to consider refinancing, because you know, 0:03:46.760 --> 0:03:48.720 some people may have even taken out of homeland six 0:03:48.720 --> 0:03:50.920 months ago. Is that too soon or do they need 0:03:50.960 --> 0:03:53.240 to be Is there a sweet spot where they're the 0:03:53.240 --> 0:03:56.240 biggest savings of say five years in or is it 0:03:56.280 --> 0:03:59.760 even further like when when do you know it's It's 0:03:59.760 --> 0:04:01.720 a hard one even as a financial plan, I think, 0:04:02.080 --> 0:04:03.960 but when do we need to shop around? 0:04:04.320 --> 0:04:08.680 Okay? So we with our clients, we have an annual 0:04:08.760 --> 0:04:12.080 review process. Okay, so, and that's free. 0:04:12.160 --> 0:04:14.040 That's part of the service, part of the service, And 0:04:14.040 --> 0:04:15.800 that's what I explained at the beginning of this episode. 0:04:15.880 --> 0:04:18.359 People do not understand how valuable that is. 0:04:18.480 --> 0:04:21.120 Yea, so so that's that's part of the service. So 0:04:21.160 --> 0:04:24.520 at least once a year, you know, check in understand 0:04:25.760 --> 0:04:29.880 where your loan is at, questions such as is it 0:04:29.920 --> 0:04:32.200 the right rate? Does it still meet your needs? Okay, 0:04:32.279 --> 0:04:33.240 So it's not all about rate. 0:04:33.520 --> 0:04:36.160 Yeah, it's just a good point because, like the setup 0:04:36.800 --> 0:04:39.280 of a home loan is really important. And that's why 0:04:39.279 --> 0:04:41.040 I say the right get set up the right way 0:04:41.080 --> 0:04:41.599 the first time. 0:04:41.839 --> 0:04:44.840 Yeah, exactly. So things like annual package fees can get 0:04:44.839 --> 0:04:46.920 away from you and you forget about them. But then 0:04:46.960 --> 0:04:49.920 if you understand that there are better options out there, 0:04:50.160 --> 0:04:51.560 it can make a significant difference. 0:04:52.600 --> 0:04:57.680 Definitely, Okay. So what are the key benefits then in refuncing? 0:04:57.720 --> 0:05:00.479 What is the driving motivation for me to pick up 0:05:00.480 --> 0:05:03.159 the phone and call a mortgage broker or call you 0:05:03.279 --> 0:05:04.239 or call my bank? 0:05:04.560 --> 0:05:09.479 The key one is comfort? Okay. So through the process, 0:05:10.680 --> 0:05:14.680 and you may not refinance right, but at least through 0:05:14.720 --> 0:05:18.159 the process you'll understand is it the best rate that 0:05:18.200 --> 0:05:21.719 I can get at the moment? Is it optimal? Does 0:05:21.760 --> 0:05:25.840 the loan still and the banking features still meet my needs? Right? 0:05:25.880 --> 0:05:28.680 And that to have that comfort and to understand where 0:05:28.720 --> 0:05:34.760 you're at is critical, okay, And then only when you 0:05:34.800 --> 0:05:39.279 do that, can you understand if you actually need to refinance? Okay, 0:05:39.720 --> 0:05:42.880 and so on, one flows through to the other. 0:05:43.360 --> 0:05:46.000 It's interesting you say that. The other day someone messaged 0:05:46.000 --> 0:05:49.120 me on Instagram to say that they did your seven 0:05:49.200 --> 0:05:52.000 day mortgage challenge at the beginning of the year, and 0:05:52.040 --> 0:05:54.640 they said they always thought they were being over charged 0:05:54.680 --> 0:05:56.640 for their home loan on the industry they were paying, 0:05:56.960 --> 0:05:59.640 but in doing this particular challenge and making the phone 0:05:59.680 --> 0:06:03.600 calls and doing some research, they actually realize they're at 0:06:03.600 --> 0:06:05.600 a really competitive rate, and all of a sudden they 0:06:05.600 --> 0:06:09.120 felt this sense, as you said, of comfort, knowing actually 0:06:09.240 --> 0:06:10.880 I'm on a great rate, and then of course from 0:06:10.880 --> 0:06:13.240 comfort comes a sense of gratitude as well. So it 0:06:13.320 --> 0:06:16.560 was really interesting hearing that feedback from them, and it 0:06:17.040 --> 0:06:20.640 obviously had a positive impact on how they continue on 0:06:20.720 --> 0:06:23.080 to work with their mortgage and they now know that 0:06:23.480 --> 0:06:25.440 what to look for when it comes to it potentially 0:06:25.480 --> 0:06:30.240 being time below the signs when it's time to refine it. So, 0:06:30.720 --> 0:06:33.480 I mean, obviously you said comfort, but then of course refinancing. 0:06:33.680 --> 0:06:36.479 You know, obviously we're all licensed. We need to make 0:06:36.520 --> 0:06:38.920 sure that we put every single customer or client into 0:06:39.000 --> 0:06:41.640 a better financial position in order to be able to 0:06:41.680 --> 0:06:45.040 justify making tweaks and changes and using various financial products. 0:06:45.279 --> 0:06:47.960 Surely that comes in after comfort actual savings. 0:06:48.240 --> 0:06:51.240 Absolutely absolutely. As I said, if you go, if you 0:06:51.279 --> 0:06:54.320 start the process, then the process will tell you whether 0:06:54.360 --> 0:06:57.320 you need to refinance or not, right if you ask 0:06:57.360 --> 0:07:00.440 the questions, if you have a good look at it, 0:07:01.000 --> 0:07:05.359 and there's a balance, right, so you know, you don't 0:07:05.400 --> 0:07:09.640 want a broker constantly recommending refinances for their needs because 0:07:09.760 --> 0:07:13.000 they are you know, clipping the ticket on commission. But 0:07:13.080 --> 0:07:15.920 then you also don't want the other end of the 0:07:15.920 --> 0:07:19.160 spectrum where some brokers are lazy and don't refinance you 0:07:19.160 --> 0:07:21.080 because they're just happy to for the loan to sit 0:07:21.120 --> 0:07:25.000 there and chase new clients. So it's about understanding, you know, 0:07:25.040 --> 0:07:28.520 the broker, what their drivers are, how client focused they are, 0:07:28.960 --> 0:07:32.320 and then going through the process yourself, asking the questions, yourself, 0:07:32.800 --> 0:07:36.000 going through that mortgage health check process, and then determining 0:07:36.160 --> 0:07:37.840 whether you should look at a refinance. 0:07:38.280 --> 0:07:41.560 Okay, all right, do you have any examples of you know, 0:07:42.560 --> 0:07:45.920 how much you've been able to help people save by 0:07:46.000 --> 0:07:49.720 refinancing and the impact of having to do a little 0:07:49.720 --> 0:07:52.280 bit of hard work and obviously the data gathering and 0:07:52.480 --> 0:07:53.120 form filling. 0:07:53.760 --> 0:07:59.800 Well, it's it's not that hard work. It's these days 0:08:00.200 --> 0:08:02.680 a lot of the documents are electronic and they can 0:08:02.760 --> 0:08:05.440 just be emailed or uploaded. We've got a portal now 0:08:05.480 --> 0:08:07.680 where everyone gets a personalized portal and they're just uploaded. 0:08:07.720 --> 0:08:10.840 So that's one I think that's one important myth that 0:08:10.880 --> 0:08:14.480 if we can try and get it to that myth today, 0:08:14.520 --> 0:08:17.560 that'd be great because it's I don't believe it's statifical 0:08:17.640 --> 0:08:18.480 in this day and age. 0:08:18.880 --> 0:08:22.880 I have to say, as a long lover and client 0:08:23.040 --> 0:08:25.400 of Blue Lantern, I rarely have to do anything because 0:08:25.440 --> 0:08:27.640 you have so much data on me. It's not like 0:08:27.640 --> 0:08:30.600 I'm you know, that's a great thing about that ongoing services. 0:08:30.600 --> 0:08:33.200 You already have eighty five percent of the stuff for 0:08:33.240 --> 0:08:35.920 me anyway, Yeah, because you've got all my files and 0:08:35.960 --> 0:08:38.520 it's just literally sometimes a two second job. 0:08:38.559 --> 0:08:41.080 That's right to do it. And going back to the 0:08:41.120 --> 0:08:42.959 example that I was going to quote, So I had 0:08:43.640 --> 0:08:47.120 I had clients who I mean these clients very busy 0:08:47.160 --> 0:08:51.479 people and they are they probably will call them unicorns. 0:08:52.600 --> 0:08:55.200 They had a rate with their existing bank of seven 0:08:55.240 --> 0:08:58.520 point seven percent, and. 0:08:58.800 --> 0:08:59.720 I feel sick. 0:09:00.920 --> 0:09:05.360 Well, they because they were using offsets. They thought, oh, well, 0:09:05.400 --> 0:09:08.080 it's not that impactful. They thought they were too busy. 0:09:08.880 --> 0:09:12.400 And I just said, okay, even though you're not my 0:09:12.440 --> 0:09:15.280 client yet, to build a relationship with you, I'm going 0:09:15.320 --> 0:09:18.960 to talk to your existing bank on your behalf and 0:09:19.000 --> 0:09:20.880 get that rate down for you without you having to 0:09:20.880 --> 0:09:23.839 do a thing. And so I got that rate down 0:09:24.080 --> 0:09:25.480 to six point one five. 0:09:26.880 --> 0:09:29.000 I hope they sent you're a really nice bottle of wine. 0:09:30.440 --> 0:09:31.720 Not yet, I'm still waiting. 0:09:32.480 --> 0:09:34.120 But that savings is huge. 0:09:34.559 --> 0:09:37.360 It's massive, and it's massive because they wanted to do 0:09:37.400 --> 0:09:41.600 something else and the actual high rate was stopping them 0:09:41.640 --> 0:09:44.040 doing something else. They wanted to buy a property for 0:09:44.080 --> 0:09:52.920 their daughter. And then by managing that process and it's 0:09:52.920 --> 0:09:55.400 technically not a refinance because they didn't change banks, but 0:09:55.840 --> 0:09:59.160 by going through the process and me helping them, were 0:09:59.200 --> 0:10:01.760 able to drop rate, create borrowing capacity, and then achieve 0:10:01.760 --> 0:10:05.960 their objective of you buying the property for their daughter 0:10:06.160 --> 0:10:10.720 without without too much change to their existing banking structure. 0:10:11.400 --> 0:10:14.520 And I guess that's another benefit of ter refinancing, because 0:10:15.400 --> 0:10:18.800 the bank's numbers on the new figures being lower makes 0:10:18.840 --> 0:10:22.199 your situation look at It is obviously a lot more comfortable. 0:10:22.440 --> 0:10:24.360 That's right, and you can do other things. You can 0:10:24.360 --> 0:10:26.200 look at it, you know exactly, and an investment alone 0:10:26.200 --> 0:10:28.360 attaching to that because you've got your serviceability is now 0:10:28.360 --> 0:10:32.080 so much better. But the significantly lower interest rate like that. 0:10:31.720 --> 0:10:34.920 That's right, that's right. So that's why we started talking 0:10:34.920 --> 0:10:38.439 about the fact that, yes, rate is important, but it's 0:10:38.480 --> 0:10:41.840 not just about the rate. Through the process, you know, 0:10:42.000 --> 0:10:43.679 you can look at things and go, okay, well I've 0:10:43.679 --> 0:10:46.360 retired some debt. Do I recycle that debt? Or do 0:10:46.480 --> 0:10:51.480 I now look at consolidating other debts? So there's a 0:10:51.640 --> 0:10:55.720 there's a bigger picture through the process that can save 0:10:55.760 --> 0:10:59.040 you money in the mortgage its own right, but then 0:10:59.280 --> 0:11:02.240 save you money will make you money outside of the 0:11:02.280 --> 0:11:03.000 mortgage as well. 0:11:03.080 --> 0:11:06.120 Okay, can we go through the process of refinancing because 0:11:06.120 --> 0:11:08.840 obviously you've spoke about and that was a refinancing of 0:11:08.840 --> 0:11:11.199 someone's existing loan facility with their bank, and you went 0:11:11.240 --> 0:11:14.240 to fight the bank on their behalf and obviously did 0:11:14.280 --> 0:11:16.880 an exceptional job. What about you know, someone who's got 0:11:17.000 --> 0:11:19.480 five years into their home loan. Yep, Like, what does 0:11:19.520 --> 0:11:22.560 that process look like? Because a lot of people think 0:11:22.679 --> 0:11:26.240 refinancing is going to be. And I know this perception 0:11:26.360 --> 0:11:28.880 is completely wrong and flawed, but they think it's going 0:11:28.920 --> 0:11:30.520 to be. You know, Oh god, I've got to digging 0:11:30.520 --> 0:11:33.360 through my paperwork and you know it's not. Can we 0:11:33.400 --> 0:11:37.160 talk about how smooth and efficient this is sure, and 0:11:37.520 --> 0:11:39.120 even the time involved taken? 0:11:39.400 --> 0:11:43.199 Okay, So if you are a PAYG employee, if you 0:11:43.240 --> 0:11:45.480 get a pay slip, if you can give me two 0:11:45.520 --> 0:11:48.840 forms of identity, that one I would need a scanned 0:11:48.880 --> 0:11:53.080 copy of the hard copy because banks don't accept digital 0:11:53.320 --> 0:11:56.160 copies yet, but that's easier if I can do that 0:11:56.240 --> 0:11:59.240 on their phone. Yeah, send me a photo of it. 0:11:59.240 --> 0:12:03.560 It's that simple. Two pay slips, loan statements and credit 0:12:03.559 --> 0:12:09.600 card statements, complete, a fact find done, I can refinance you. 0:12:10.240 --> 0:12:13.200 So that that shouldn't take anyone more than an hour. 0:12:13.520 --> 0:12:16.360 Yeah. I actually have all those documents saved on my 0:12:16.520 --> 0:12:20.040 phone already, because there's always situations where someone needs something 0:12:20.040 --> 0:12:20.280 from you. 0:12:20.400 --> 0:12:23.640 All I say is I wish every client was like, I'm. 0:12:23.480 --> 0:12:24.760 Sounding really OCD. 0:12:24.960 --> 0:12:29.680 I realized, no, it's actually a good point. I maybe 0:12:29.679 --> 0:12:31.800 this is a good platform to do it. I try 0:12:31.920 --> 0:12:34.040 when I talk to people, I always try to be 0:12:34.120 --> 0:12:38.439 financed ready, you know, have your identity documents saved somewhere 0:12:38.679 --> 0:12:42.160 where it's safe electronically. Know how to get your pay 0:12:42.200 --> 0:12:45.840 slips bank statements is easy if you if you're set 0:12:45.880 --> 0:12:47.959 up for restatements with your bank, we can send you 0:12:48.000 --> 0:12:50.240 a link at the bank statements come automatically to us. 0:12:50.320 --> 0:12:54.920 So it's not that hard to be finance ready for 0:12:56.160 --> 0:12:58.960 refinance or for any other type of finance for that matter. 0:12:59.480 --> 0:13:01.280 I know for myself, the reason why I have it 0:13:01.760 --> 0:13:05.920 organized like this is I'm time poor, you know, three kids, 0:13:06.040 --> 0:13:09.120 my partner's away, you know, away overseas fifty percent of 0:13:09.160 --> 0:13:11.640 the time. And if I don't do it then and 0:13:11.679 --> 0:13:13.719 there in the minute, it's going to take four or 0:13:13.760 --> 0:13:15.240 five weeks for me to get it back to someone. 0:13:15.280 --> 0:13:18.280 So if I can literally just access it, you know, 0:13:18.320 --> 0:13:20.520 and I literally have a file in my phone in 0:13:20.559 --> 0:13:23.400 my photos and it's named so, and I know that 0:13:23.480 --> 0:13:25.959 in that as a photograph of our Medicare card or 0:13:25.960 --> 0:13:28.599 of private health insurance, my tax phile numbers, my abns, 0:13:29.679 --> 0:13:33.320 like every single document, even the kids immunization statements. Because 0:13:33.320 --> 0:13:35.000 there's always a situation where you go, you know what, 0:13:35.120 --> 0:13:36.480 I can tick this off my list of things to 0:13:36.480 --> 0:13:39.280 do immediately on the spot and it's done, and it 0:13:39.559 --> 0:13:42.000 just it saves me so much space in my brain. 0:13:42.040 --> 0:13:44.440 And you know, I have someone who I have ADHD, 0:13:45.000 --> 0:13:47.480 so I can very easily get distracted and I can 0:13:47.520 --> 0:13:50.880 have over a thousand excuses to procrastinate. But just having 0:13:50.920 --> 0:13:54.960 this is just it's been really helpful in making me 0:13:54.960 --> 0:13:58.200 stay on top of the family finances whilst juggling a 0:13:58.240 --> 0:14:00.559 lot of different balls in the air. So it's a simple, 0:14:00.600 --> 0:14:03.000 easy hack. Use your phone obviously, break shure, it's protected 0:14:03.200 --> 0:14:05.840 and safe and secure. But you know, again, it means 0:14:05.840 --> 0:14:08.199 that you know you're going to start saving money sooner. 0:14:08.559 --> 0:14:11.000 Exactly exactly, And I think you and I I'll do 0:14:11.000 --> 0:14:13.720 a higher standard. I think your listeners, my clients would 0:14:13.760 --> 0:14:16.960 expect that we would be organized. Yeah, because we're not organized, Well, 0:14:16.960 --> 0:14:18.360 how can we help them be organized? 0:14:18.480 --> 0:14:20.840 So okay, you made me feel safe. Thank you for 0:14:20.920 --> 0:14:23.960 being a socity about But you know, these simple things 0:14:23.960 --> 0:14:26.640 that do make life run smoothly, and it takes seconds 0:14:26.640 --> 0:14:28.480 to set up, and once you've set it up on 0:14:28.520 --> 0:14:30.800 the go, Like the other day, I literally uploaded Apples 0:14:30.800 --> 0:14:33.800 immunization certificate into my phone. You know, I was like, great, 0:14:33.880 --> 0:14:37.720 is now there? All right? So so moving on with 0:14:37.800 --> 0:14:42.440 this process. So you know that data, you know identification process, 0:14:42.840 --> 0:14:44.600 Then what comes that? Do I need to give you 0:14:44.640 --> 0:14:47.600 a budget? Do I need to you know, give you 0:14:47.640 --> 0:14:50.520 get someone to get access to the home to value it? 0:14:50.560 --> 0:14:52.960 Like where how does it go from there to I 0:14:53.000 --> 0:14:54.720 want from start to end the whole process. 0:14:54.840 --> 0:14:57.400 So once once I have that financial information including your 0:14:57.400 --> 0:14:59.440 fact fine, so that's where you would have to share 0:14:59.440 --> 0:15:01.920 with me living expenses because that's an important part of 0:15:02.840 --> 0:15:08.240 borrowing capacity. Once I assess, then if there is benefit 0:15:08.640 --> 0:15:14.920 in doing the refinance, I will put three lenders to you. 0:15:15.920 --> 0:15:17.760 Because the important thing to note is broke as a 0:15:17.800 --> 0:15:19.120 hell to a higher standard. Then if you go to 0:15:19.200 --> 0:15:21.800 a bank, a banker I needs to talk about their products. 0:15:22.080 --> 0:15:24.000 We have to provide you three options. 0:15:24.600 --> 0:15:26.400 Really I didn't know that, Yes we do. 0:15:27.560 --> 0:15:31.280 Okay, that's interesting, Yes, very interesting. So when it comes 0:15:31.280 --> 0:15:35.880 to time saving, I'll talk about that later on. So 0:15:35.960 --> 0:15:39.400 then the way I do it is I work with 0:15:39.440 --> 0:15:41.520 the clients to help them understand why a certain lender 0:15:41.640 --> 0:15:45.880 is the best option, and then the house needs to 0:15:45.920 --> 0:15:49.040 be valued. Property needs to be valued. A lot of 0:15:49.080 --> 0:15:51.720 valuations these days are electronic, so you don't even have 0:15:51.760 --> 0:15:54.840 to have a valuer come around and inspect the property. 0:15:55.160 --> 0:15:59.240 It's done via data, so if you're lucky enough that 0:15:59.320 --> 0:16:01.760 you don't need that, you won't even have to worry 0:16:01.800 --> 0:16:06.560 about that, and then the loan would be submitted, assessed, 0:16:08.640 --> 0:16:12.000 should be approved. The only manual part of it is 0:16:12.120 --> 0:16:16.120 actually leaving your current bank in that all banks have 0:16:16.240 --> 0:16:18.280 a manual discharge form you have to sign where you 0:16:18.320 --> 0:16:21.880 have to print it out, wet sign it and scan it. Okay, 0:16:22.000 --> 0:16:25.440 so if you need help with printing, I'll help you 0:16:25.520 --> 0:16:28.640 with that as well. But once you get me the 0:16:29.600 --> 0:16:32.280 hard copy or the scanned copy, then I'll do that 0:16:32.320 --> 0:16:33.200 on your behalf as well. 0:16:33.520 --> 0:16:35.320 And just for the record, you guys work with people 0:16:35.360 --> 0:16:38.600 across the country, yes, and occasionally ever seas as well. 0:16:38.680 --> 0:16:38.920 Yes. 0:16:39.080 --> 0:16:40.720 Yeah, so it doesn't matter you don't think, well, we're 0:16:40.760 --> 0:16:43.440 not based in Sydney, John can't help us. That's not 0:16:43.480 --> 0:16:45.920 the case at all. In fact, everything is done pretty 0:16:46.000 --> 0:16:46.800 much online anyway. 0:16:46.960 --> 0:16:50.600 Most things are electronic and digital. And also we will 0:16:50.920 --> 0:16:53.240 try and make the process as easy as possible for you. 0:16:53.280 --> 0:16:55.840 Believe me, if we could avoid you signing a bas 0:16:55.880 --> 0:16:59.840 of paper, we would, But you know, some institutions need 0:17:00.080 --> 0:17:02.800 certain pieces of paper signed, but it's getting rare these days. 0:17:02.920 --> 0:17:05.040 Yeah, I mean, and as all this is, the whole 0:17:05.080 --> 0:17:08.360 thing is about efficiency. Yes, can we talk about the 0:17:08.400 --> 0:17:12.080 cost it does it cost to engage with a mortgage broker? 0:17:12.480 --> 0:17:14.240 How do they get paid? How do you get paid? 0:17:14.240 --> 0:17:16.280 Like a hat so that people can understand, like it's 0:17:16.320 --> 0:17:17.840 the transparency here. 0:17:18.440 --> 0:17:23.560 Well, our firm we do not charge any fees. So 0:17:24.080 --> 0:17:26.520 we have a simple business model whereby if you like 0:17:26.560 --> 0:17:28.760 what we do and we're successful and in getting a 0:17:28.800 --> 0:17:32.080 loan for you, we get paid by the lender and 0:17:32.359 --> 0:17:35.520 that is at no cost to you. And in fact, 0:17:36.400 --> 0:17:40.040 we would back ourselves that in most cases you actually 0:17:40.160 --> 0:17:42.399 end up with a better outcome than if you did 0:17:42.440 --> 0:17:43.639 it yourself going to a lender. 0:17:44.080 --> 0:17:47.720 Wow, I like the set of that. Then can you 0:17:47.720 --> 0:17:51.600 talk me through some common mistakes people make and pitfalls? 0:17:51.800 --> 0:17:55.200 Like where things have you've seen people go wrong? 0:17:56.240 --> 0:18:01.680 Yeah? Well not with us, I don't usually the previous 0:18:01.680 --> 0:18:05.800 broker that we're taking over it. No, I'm sure wonderful shop. 0:18:05.960 --> 0:18:09.800 I mean I've seen I you know, from my financial 0:18:09.840 --> 0:18:11.960 planning practice, I've seen all sorts of doozies that I've 0:18:11.960 --> 0:18:14.320 had to get you guys to help clean up with 0:18:14.359 --> 0:18:15.959 other what other brokers had messed up. 0:18:16.359 --> 0:18:19.800 So firstly, the thing is to understand that there are 0:18:19.880 --> 0:18:23.840 costs of things, right, so there are. There shouldn't be 0:18:23.880 --> 0:18:26.960 any hidden costs. They should be outlined to you, which 0:18:26.960 --> 0:18:29.320 is part of our job. Okay, So the costs are. 0:18:29.760 --> 0:18:32.439 There will be discharge free from your current bank, then 0:18:32.600 --> 0:18:36.000 there will be some minor government charges for changing the 0:18:36.640 --> 0:18:39.800 mortgage holder, and then there may be an application fee 0:18:39.800 --> 0:18:44.040 from the incoming lender. So what need what needs to 0:18:44.080 --> 0:18:47.880 be clearly demonstrated to anyone is that even with those costs, 0:18:48.240 --> 0:18:52.760 the benefit of refinancing is over and above those costs. Okay. 0:18:54.680 --> 0:18:57.960 So that's the first mistake people make is people don't 0:18:58.000 --> 0:19:03.479 factor in those costs. Second, and then therefore they've changed 0:19:03.520 --> 0:19:08.120 for no apparent benefit or the cost outweighs the benefit. 0:19:09.160 --> 0:19:12.960 The big one is people that restart their loan term. 0:19:13.480 --> 0:19:16.240 Yes, I'm glad that you mentioned this, because this is 0:19:16.280 --> 0:19:18.399 where people end up just chasing their tail. They just 0:19:18.440 --> 0:19:20.919 refinance to another thirty year term. And of course there 0:19:20.920 --> 0:19:23.840 are situations where you have no choice but to make 0:19:23.920 --> 0:19:26.439 to get the load approved, you need to sign a 0:19:26.480 --> 0:19:32.080 new thirty year term. But don't make don't stick to that, 0:19:32.200 --> 0:19:35.160 try and maintain those repayments or increase those repayments. 0:19:35.240 --> 0:19:38.480 So there is So this is really important, right because 0:19:38.840 --> 0:19:41.359 and let me explain it to people. So if you have, 0:19:41.480 --> 0:19:45.640 if you're currently twenty eight years into your loan term, 0:19:46.160 --> 0:19:49.239 to reset it to thirty is actually like having a 0:19:49.280 --> 0:19:52.000 thirty two year loan. That's what you're doing. You're starting, 0:19:52.040 --> 0:19:55.520 You're you're not in. You're not starting any gown backwards. Yeah, okay, 0:19:56.359 --> 0:20:01.040 So that's the first issue. The set second issue is 0:20:01.320 --> 0:20:04.600 that all that interest you've paid in the first two years, 0:20:04.680 --> 0:20:09.040 you're paying again. So if you don't manage that, if 0:20:09.080 --> 0:20:12.080 you just let that loan run its full thirty year term, 0:20:12.560 --> 0:20:14.760 you will pay on an eight hundred fifty thousand dollar alone, 0:20:15.080 --> 0:20:17.560 you will pay an extra eighty thousand dollars. 0:20:18.680 --> 0:20:21.840 Wow, that is a pretty serious pitfall. 0:20:21.880 --> 0:20:24.480 If you ask me, yes, and now I understand your 0:20:24.480 --> 0:20:27.960 listeners are would be had all different loan sizes, and 0:20:28.000 --> 0:20:30.560 if they're saying, well, at eight hundred and fifty thousand alone, 0:20:30.560 --> 0:20:32.560 I would never get an eight hundred five thousand alone. Well, 0:20:32.800 --> 0:20:34.879 let's look at a five hundred thousand doll alone on 0:20:34.960 --> 0:20:38.639 a five hundred thousand alone, restarting the term. The extra 0:20:38.720 --> 0:20:41.040 interest you're paying is forty seven thousand dollars. 0:20:41.480 --> 0:20:43.879 Okay, well you heard here first, and this has been 0:20:43.920 --> 0:20:48.640 beautifully explained by Johnson. Thank you. What about knowing whether 0:20:48.640 --> 0:20:50.919