WEBVTT - Debbie Roberts: RBNZ needs to bring OCR down "hard and fast" 0:00:05.761 --> 0:00:09.441 You're listening to the Weekend Collective podcast from News Talks. 0:00:09.441 --> 0:00:09.721 I'd be. 0:00:11.601 --> 0:00:25.641 Stun the sky like a tag and the viol Love. 0:00:28.241 --> 0:00:33.361 I'm a racing came to do. 0:00:35.001 --> 0:00:35.801 Business stuff. 0:00:45.321 --> 0:00:55.001 I'm sun Stop and welcome back to the one. This 0:00:55.161 --> 0:00:56.961 is the week in Collective and this hour it's the 0:00:56.961 --> 0:00:59.561 one Rufe Radio show. I'm Tim Beveridge. If you missed 0:00:59.561 --> 0:01:02.681 a panel with a lovely panel actually because if well 0:01:02.761 --> 0:01:04.721 you have just joined, and if you've if you haven't joined, 0:01:04.721 --> 0:01:06.921 and I'll be flogging it to death the news that 0:01:06.961 --> 0:01:09.321 Wilhelmina Shrimpton, one of my panelists, had just got engaged 0:01:09.361 --> 0:01:12.841 to her lovely partner Ben O'Keefe, and we flogged that 0:01:12.881 --> 0:01:14.361 a little bit with the music and everything. But it 0:01:14.401 --> 0:01:17.241 was a great panel with Wilhelmina and Mark Kreisel. You 0:01:17.241 --> 0:01:19.241 can check it out. Go and look for our podcast. 0:01:19.881 --> 0:01:22.921 Look for the Weekend collect Them on iHeartRadio as usually 0:01:23.081 --> 0:01:24.521 the best place to start to go to the News 0:01:24.561 --> 0:01:26.641 Talks at b website and we get these hours loaded 0:01:26.641 --> 0:01:30.041 pretty quickly once they've concluded. By the way, just looking 0:01:30.281 --> 0:01:32.681 ahead to the next hour for the Prince Squad. Catherine 0:01:32.681 --> 0:01:35.041 Burkett is with us to talk about whether you should 0:01:35.121 --> 0:01:39.161 you know, how hard you need to encourage or nag 0:01:39.241 --> 0:01:41.481 your kids on studying or do you leave them to 0:01:41.521 --> 0:01:44.081 make their own decisions. We'll be taking your calls on 0:01:44.121 --> 0:01:46.401 that as we do this hour. We want your calls 0:01:46.641 --> 0:01:48.361 for the one roof radio show on over one hundred 0:01:48.361 --> 0:01:51.601 and eighty ten and eighty text nine nine two. And 0:01:51.721 --> 0:01:54.521 my guest is she is a financial advisor at Property 0:01:54.561 --> 0:01:58.881 Apprentice and her name is Debbie Roberts. And almost get 0:01:58.921 --> 0:02:00.681 into the stage where we need an open production. People 0:02:00.681 --> 0:02:03.081 will recognize your voice, Debbie, just about I want imagine 0:02:03.241 --> 0:02:03.721 thank you. 0:02:03.801 --> 0:02:05.361 That's kind, but probably. 0:02:05.841 --> 0:02:06.601 How are you anyway? 0:02:06.681 --> 0:02:07.601 I'm good, I'm good. 0:02:08.001 --> 0:02:09.681 You've been keeping yourself out of mischief? 0:02:09.921 --> 0:02:10.161 Yes? 0:02:10.521 --> 0:02:13.401 Absolutely, things are certainly getting busy at the moment. 0:02:13.761 --> 0:02:16.561 Well, we're going to talk about the OCR because the 0:02:16.561 --> 0:02:19.601 Reserve Bank has dropped the OCR by fifty basis points. 0:02:20.041 --> 0:02:21.761 A lot of Now this is for you if you're listening. 0:02:22.761 --> 0:02:25.201 How far do you want it, want it need it 0:02:25.281 --> 0:02:27.321 to fall? And how fast should it fall? There's so 0:02:27.361 --> 0:02:31.441 many I mean basically should it, could it? Or what 0:02:31.481 --> 0:02:33.521 do you need it to fall? To the OCR Because 0:02:33.521 --> 0:02:37.001 a lot of commentary I've seen is that we know 0:02:37.081 --> 0:02:40.281 that Adrian Or he was. In fact, I think there 0:02:40.321 --> 0:02:42.041 was a time, wasn't there, Debbie, when he was talking 0:02:42.081 --> 0:02:44.841 about he might lower it next year, And of course 0:02:45.561 --> 0:02:48.961 he didn't really realize to detrash the economy so effectively 0:02:49.161 --> 0:02:50.441 exactly exactly. 0:02:50.761 --> 0:02:53.841 He was originally talking about not reducing it until maybe 0:02:53.841 --> 0:02:56.361 middle of next year at one point. But I think, 0:02:56.561 --> 0:03:00.281 you know, in my opinion, I think he raised it 0:03:00.361 --> 0:03:04.081 too late and he's reduced it too late. He should 0:03:04.081 --> 0:03:07.761 have started reducing ages ago. I think, yeah, there's a 0:03:07.801 --> 0:03:09.321 lot of blood in the water at the moment. 0:03:09.841 --> 0:03:13.681 Actually, I'm glad to hear you use a dramatic expression 0:03:13.761 --> 0:03:17.761 like that, because a lot of the time, the language 0:03:17.801 --> 0:03:22.321 of economics denies the human suffering that goes on when 0:03:22.601 --> 0:03:25.281 you raise an interest rate, and people if you have 0:03:25.321 --> 0:03:30.361 to have a mortgage sale, that is a massive, massive 0:03:30.601 --> 0:03:34.641 toll to take on any individual, and economists use the expression. 0:03:34.681 --> 0:03:36.161 I think Adrian Or used it. I'm not going to 0:03:36.161 --> 0:03:38.441 pick on him. He's using the language that he's accustomed to. 0:03:39.161 --> 0:03:40.601 But you know, there's going to be a little bit 0:03:40.641 --> 0:03:42.241 of pain that we might have. There might be a 0:03:42.281 --> 0:03:44.761 bit more pain. It's not like someone just you know, 0:03:45.441 --> 0:03:47.801 injects you with a little bit of pain for a 0:03:47.841 --> 0:03:50.441 moment where you'll feel some temporary discomfort. It's going to 0:03:50.481 --> 0:03:51.041 ruin lives. 0:03:51.121 --> 0:03:55.161 Yeah, absolutely, And I think potentially the biggest issue at 0:03:55.201 --> 0:03:57.961 the moment is the pain that the economy is suffering. 0:03:58.161 --> 0:04:02.721 You know, to be fair, with banks testing affordability at 0:04:02.801 --> 0:04:06.401 much higher interest rates than they than are currently on offer. 0:04:06.601 --> 0:04:09.361 That's prevented a lot of people from getting into mortgage 0:04:09.401 --> 0:04:12.881 g sales. I mean, we saw a lot more mortgage 0:04:12.881 --> 0:04:15.641 e sales in the Global financial crisis than we've seen 0:04:15.681 --> 0:04:19.241 this time round because the banks are implementing those high 0:04:19.281 --> 0:04:22.401 test rates, so they were stress testing everyone before they 0:04:22.441 --> 0:04:24.641 even signed off the mortgage, which has helped. 0:04:25.001 --> 0:04:30.001 Is there also have banking practices in the last twenty 0:04:30.121 --> 0:04:31.881 years or so changed a bit. 0:04:31.841 --> 0:04:34.521 So they've changed dramatically. 0:04:34.761 --> 0:04:38.241 Okay, good. I do remember the black and white section 0:04:38.361 --> 0:04:40.921 of the property whatever it was that you'd read, and 0:04:41.001 --> 0:04:44.521 that's the mortgage sales used to be quite thick, and 0:04:45.281 --> 0:04:48.161 you just observe that there are fewer, so obviously the 0:04:48.201 --> 0:04:51.161 banks are doing much more to try and protect the 0:04:51.201 --> 0:04:52.401 interests of their borrowers. 0:04:52.561 --> 0:04:56.241 Well, I think ever since the Global Financial Crisis, to 0:04:56.281 --> 0:04:59.321 be fair, all the rules around lending changed quite dramatically, 0:04:59.401 --> 0:05:02.201 and then with the implementation of the Triple CFA, they 0:05:02.321 --> 0:05:07.161 changed again. So the rules around a definitely starting to relax. 0:05:08.161 --> 0:05:11.121 So getting lending is starting to get a little bit easier, 0:05:11.121 --> 0:05:14.881 which is great. The difficulty at the moment, I think, 0:05:14.921 --> 0:05:16.761 and this is one of the reasons that we're seeing 0:05:16.761 --> 0:05:20.041 the ocr coming down, is because the economy is struggling, 0:05:20.401 --> 0:05:23.921 you know, and when the economy struggles, people lose jobs, 0:05:24.161 --> 0:05:28.001 businesses go into liquidation, you know. So we've essentially been 0:05:28.601 --> 0:05:32.561 in an economic downturn. We've been in what's the word, 0:05:32.561 --> 0:05:35.961 I'm looking for a recession for nearly three years. You know. 0:05:36.241 --> 0:05:38.521 It's been brutal for a lot of people. 0:05:38.921 --> 0:05:42.201 So, by the way, just so if you have I mean, 0:05:42.241 --> 0:05:46.321 because sometimes people digest their news infrequently. So the cash 0:05:46.441 --> 0:05:49.481 rate has been reduced by fifty basis points to four 0:05:49.481 --> 0:05:53.761 point seventy five percent. A question for you, and Debby's 0:05:53.761 --> 0:05:55.881 going to give her view on what she understands it 0:05:56.121 --> 0:05:59.041 maybe needs to happen, or what the banks also are 0:05:59.081 --> 0:06:01.921 anticipating because they spend a lot of time thinking about 0:06:01.921 --> 0:06:04.081 the stuff and trying to guess what Adriana was going 0:06:04.121 --> 0:06:06.281 to do. But the question for you is on I 0:06:06.281 --> 0:06:09.561 eight hundred eighty ten eighty was that enough? Or do 0:06:09.641 --> 0:06:14.001 you think that adrian or needs to do more? Now? 0:06:14.241 --> 0:06:17.801 So it's been chopped point five of a percent fifty 0:06:17.841 --> 0:06:20.081 basis points? Always think basis points? Why do't they just 0:06:20.121 --> 0:06:23.681 say half a percent? Anyway, that's the language of economists, 0:06:23.721 --> 0:06:26.521 I guess, But do they need should it for? Should 0:06:26.521 --> 0:06:29.521 it be cut further? And will it be cut further? 0:06:29.601 --> 0:06:31.361 I eight hundred eighty ten eighty. You can give your 0:06:31.401 --> 0:06:34.881 reckons on that, Debbie, What do you reckon? 0:06:35.481 --> 0:06:39.521 I reckon? So I reckon it absolutely needs to come 0:06:39.561 --> 0:06:42.521 down further, and I think it needs to come down 0:06:42.681 --> 0:06:46.481 hard and fast. So a lot of economists are expecting 0:06:46.681 --> 0:06:51.921 at least a point five reduction in November. Whoa, I know, 0:06:52.241 --> 0:06:54.881 but that's and that's what the financial markets are factoring 0:06:54.921 --> 0:06:56.841 in as well. So at least a point five? 0:06:57.121 --> 0:06:59.081 Why why should it be another point five? 0:06:59.121 --> 0:07:01.041 And what what the economy's tanking? 0:07:01.161 --> 0:07:03.801 And what will that? How do? What are the economic 0:07:03.841 --> 0:07:08.201 gears that get pulled when you drop the interest rate? 0:07:08.401 --> 0:07:10.241 How does that play out? From your perspective? 0:07:10.281 --> 0:07:15.161 It gives people hope you know, is that just. 0:07:15.121 --> 0:07:18.961 All because the cost of investing in building and infrastructure 0:07:19.041 --> 0:07:21.721 and everything, it just gets cheaper, and it means that 0:07:21.721 --> 0:07:24.641 we can see more action and that feeds through the 0:07:24.641 --> 0:07:26.921 rest of the economy and business and borrow cheaper and 0:07:26.921 --> 0:07:27.761 all that. 0:07:27.761 --> 0:07:29.881 That's part of it. But I think probably, and I 0:07:29.921 --> 0:07:32.281 could be wrong here. This is just my personal opinion, 0:07:32.321 --> 0:07:35.361 but I think the reason that the ocr needs to 0:07:35.361 --> 0:07:38.601 come down is to give mortgage owners, like people who've 0:07:38.601 --> 0:07:41.681 got mortgages on their homes, give them some interest rate relief, 0:07:41.961 --> 0:07:44.041 because then they're going to have more money to spend 0:07:44.121 --> 0:07:47.601 in the economy. Because it's the businesses that haven't been 0:07:48.081 --> 0:07:52.681 doing sales that have been struggling, like you know, think restaurants, 0:07:52.841 --> 0:07:57.001 think luxury items, you know, clothes. People have been spending 0:07:57.081 --> 0:08:00.041 less on clothes, they've been spending less on furniture, they've 0:08:00.041 --> 0:08:03.321 been spending less on things that are seen to be 0:08:03.401 --> 0:08:08.161 not necessarily seen uls but nice to have. So those 0:08:08.201 --> 0:08:12.081 sort of companies in those industries have really done it tough. 0:08:12.721 --> 0:08:17.201 Because for somebody who's got a chunkyish sort of mortgage, 0:08:17.201 --> 0:08:19.241 I don't know what the average mortgage borrowing would be 0:08:19.321 --> 0:08:21.041 these days. But if you think of people in the 0:08:21.081 --> 0:08:23.881 first ten years that they're borrowing, they could have you know, 0:08:24.001 --> 0:08:27.041 I don't know, five hundred to a million dollars on 0:08:27.121 --> 0:08:28.681 mortgage much money. 0:08:28.481 --> 0:08:31.561 Don't remember the average mortgage around I saw something just 0:08:31.601 --> 0:08:34.801 a couple of days ago, about half of mate. It's 0:08:34.801 --> 0:08:37.161 about four hundred and eighty thousand I think is the 0:08:37.281 --> 0:08:39.881 average mortgage for a first home buyer. 0:08:39.761 --> 0:08:43.081 Because one percent on a half million dollar mortgage, that's 0:08:43.281 --> 0:08:47.201 what's that year. Hundred bucks a week about that. 0:08:47.441 --> 0:08:50.121 So most people in New Zealand at the moment when 0:08:50.161 --> 0:08:54.361 they're refixing their mortgages, they're either floating or just fixing 0:08:54.441 --> 0:08:57.761 for six months. So that means and that's quite different 0:08:57.801 --> 0:09:00.481 to the long term normal, like the long term Norman 0:09:00.561 --> 0:09:04.041 New Zealand is twelve month fixed rates or two year 0:09:04.081 --> 0:09:08.401 fixed rates. So that's changed. People are moving towards the 0:09:08.441 --> 0:09:11.521 shorter term interest rates now because they know that interest 0:09:11.601 --> 0:09:14.241 rates are on the way down. So you know, people 0:09:14.281 --> 0:09:17.121 are they're not wanting to fix for longer term, which 0:09:17.161 --> 0:09:19.601 I think is a smart decision because I do think 0:09:19.681 --> 0:09:22.161 there is going to be some more reductions and interest rates. 0:09:22.201 --> 0:09:25.241 Well, does anyone think that they're I mean, all the 0:09:25.241 --> 0:09:27.521 banks are trying to do with their longer term borrowing 0:09:27.641 --> 0:09:30.721 is make it so attractive that people sign up for 0:09:30.801 --> 0:09:32.721 maybe two or three or four years. 0:09:33.121 --> 0:09:35.361 The cheapest rates are the four and five year rates 0:09:35.401 --> 0:09:36.241 at the moment. 0:09:36.081 --> 0:09:38.321 Which tells you where they think the interest rates are going, 0:09:38.361 --> 0:09:38.961 which is down. 0:09:39.201 --> 0:09:41.761 Yeah, exactly, because they want you to fix for long 0:09:41.841 --> 0:09:46.201 term so you don't refinance to another bank. What's in my. 0:09:46.201 --> 0:09:49.921 Opinion, actually, I guess that must be the only motivation, because, yeah, 0:09:49.961 --> 0:09:51.841 why would they offer cheaper money. It's because they want 0:09:52.041 --> 0:09:53.281 they want your business for longer. 0:09:53.401 --> 0:09:55.841 Yeah, and there's some banks that are offering cash backs 0:09:55.841 --> 0:09:59.481 if you refinance to them, you know, so they're trying 0:09:59.521 --> 0:10:01.601 to they're trying to get your money. They're trying to 0:10:01.641 --> 0:10:04.481 get your business. So if they've locked you into a 0:10:04.481 --> 0:10:07.641 longer term interest rate, you're less likely to refinance to 0:10:07.681 --> 0:10:10.201 another bank because you have to pay break these And my. 0:10:10.201 --> 0:10:14.081 Producer Tire has told me that the average first home 0:10:14.081 --> 0:10:16.441 buyer mortgage it's sort of thinking of people at first 0:10:16.441 --> 0:10:20.201 home buyers, is five hundred and fifty four thousand dollars off. 0:10:20.401 --> 0:10:21.561 What did you think it was? 0:10:21.801 --> 0:10:23.041 I thought it was about four eighty. 0:10:24.201 --> 0:10:26.841 Yeah, I think that's a pretty good guess. It was 0:10:26.881 --> 0:10:28.161 in the vicinity of half a million. 0:10:28.481 --> 0:10:30.641 I've read a lot of articles this week and I'm 0:10:30.681 --> 0:10:31.641 bit sleep deprived. 0:10:31.761 --> 0:10:35.161 The age you've been working hard that we want to know. 0:10:35.401 --> 0:10:38.481 The average owner occupied mortgage is three hundred and nine 0:10:38.521 --> 0:10:42.041 thousand dollars. So that's on average, which means there'll be 0:10:42.041 --> 0:10:43.201 people who are a lot more than that. I mean, 0:10:43.241 --> 0:10:46.521 there'll be people who have had comfortably not comfortably. But 0:10:46.561 --> 0:10:48.481 if you're buying in a market like Auckland, and you've 0:10:48.521 --> 0:10:50.681 got a reasonable disposable income where you want the house 0:10:50.721 --> 0:10:54.481 you want, you might have a million dollar mortgage plus easily. 0:10:55.001 --> 0:10:57.201 She would think there's definitely people out there with that 0:10:57.241 --> 0:10:59.601 sort of mortgage on their home. Whether that's a smart 0:10:59.641 --> 0:11:01.641 decision or not is a different story. 0:11:02.801 --> 0:11:05.401 Yes, I know someone who works on the show who's 0:11:05.641 --> 0:11:07.001 is probably wincing at those words. 0:11:07.001 --> 0:11:10.441 Actually, well, it depends on your financial position. 0:11:10.601 --> 0:11:13.161 Well, because just to paint, but to paint a picture 0:11:13.161 --> 0:11:16.441 of it. What my memories deserted me on this. But 0:11:16.481 --> 0:11:20.321 what were people borrowing at at its cheapest? Were there 0:11:20.361 --> 0:11:22.761 something like two point nine to nine percent mortgages going 0:11:22.801 --> 0:11:23.241 for a while? 0:11:23.321 --> 0:11:26.441 Yeah, so that was during COVID you know, during COVID, 0:11:26.441 --> 0:11:30.201 the Reserve Bank slashed the OCR and at that point, 0:11:30.321 --> 0:11:33.481 interest rates were two and a half three percent, you know, 0:11:33.521 --> 0:11:35.601 two and a half to two point nine to nine percent. 0:11:36.121 --> 0:11:39.241 So a lot of people fixed their mortgages for five 0:11:39.361 --> 0:11:41.321 years on those cheap interest rates. 0:11:41.481 --> 0:11:43.761 Very good move, absolutely. 0:11:43.361 --> 0:11:45.961 And you know, some of them still haven't come off 0:11:46.001 --> 0:11:48.881 those low interest rates. Most of them will have come 0:11:48.921 --> 0:11:51.441 off those low interest rates before the next you know, 0:11:51.481 --> 0:11:54.601 before the end of the next twelve months, but you know, 0:11:54.641 --> 0:11:56.801 that's going to have quite an impact. I think the 0:11:56.841 --> 0:12:00.841 important thing to remember is that the average long term 0:12:00.921 --> 0:12:04.761 interest rate in New Zealand, excluding the period during COVID 0:12:04.801 --> 0:12:09.241 when things were unusually low, the long term average interest 0:12:09.321 --> 0:12:11.201 rates six point three five percent. 0:12:12.201 --> 0:12:16.721 So that also begs the question what is the sort 0:12:16.761 --> 0:12:21.001 of optimum interest rate that we should expect or I mean, 0:12:21.001 --> 0:12:22.881 because there's one thing to say, I want interest rates 0:12:22.881 --> 0:12:25.241 to be four percent or something, but it's not really 0:12:25.281 --> 0:12:26.841 going to happen realistically. 0:12:26.361 --> 0:12:28.561 It's not likely to get that. Like, I mean, interest 0:12:28.641 --> 0:12:32.321 rates have been trending lower over the last decade or so, 0:12:32.321 --> 0:12:35.081 so they have definitely been showing a downward trend. Why 0:12:35.161 --> 0:12:38.041 is that just because I think central banks around the 0:12:38.081 --> 0:12:41.201 world have been learning. You know, we haven't always had 0:12:41.201 --> 0:12:43.641 a reserve bank in New Zealand that's controlled things with 0:12:43.681 --> 0:12:49.601 the OCR in the eighties, did you didn't have twenty 0:12:49.601 --> 0:12:52.081 percent plus? You know that was before the OCR. So 0:12:52.601 --> 0:12:56.961 OCR has helped to control interest rates to a certain extent. 0:12:57.121 --> 0:12:58.601 So yeah, it's not all bad. 0:12:58.961 --> 0:13:01.601 Yeah, okay, we want your calls. One hundred and eighty 0:13:01.601 --> 0:13:03.841 ten eighties. The cash rate has been dropped by zero 0:13:03.881 --> 0:13:06.681 point five percent forty basis points, as they like to say, 0:13:08.121 --> 0:13:09.801 doesn't need to fall further. And if you want a 0:13:09.801 --> 0:13:13.041 little a little bit more context, the interest rates being 0:13:13.121 --> 0:13:17.601 offered by banks, the variables are around just under eight percent, 0:13:18.081 --> 0:13:19.881 and if you want to go six months or a year, 0:13:19.881 --> 0:13:23.201 it's around sort of six and a half ish percent, 0:13:23.241 --> 0:13:25.761 depending on which what your bank is. Oh, actually that's 0:13:25.801 --> 0:13:28.001 if you've got good equity, Either that or you're looking 0:13:28.041 --> 0:13:31.081 at about seven percent for six months or a year. 0:13:31.241 --> 0:13:33.241 It gets cheaper and cheaper and cheaper at the further 0:13:33.321 --> 0:13:35.681 you go out. What do you think it should be? 0:13:35.721 --> 0:13:37.241 What does it need to fall for you to be 0:13:37.241 --> 0:13:40.401 able to actually start spending money on anything apart from 0:13:40.481 --> 0:13:42.961 your mortgage and food. Oh, eight hundred eighty ten eighty 0:13:43.001 --> 0:13:45.881 text nine two nine two. We'll be back in just 0:13:45.921 --> 0:13:47.561 a moment. It's coming up to twenty one past four. 0:13:47.601 --> 0:14:08.041 News Talk said, b's never seems good. 0:14:06.721 --> 0:14:08.641 And welcome back to the one riffradio show on the 0:14:08.641 --> 0:14:10.961 weekend Collective. I'm Ton Beverage. My guest is Debbie Roberts. 0:14:10.961 --> 0:14:13.841 She's a financial advisor at Property Apprentice. DEBI if people 0:14:13.841 --> 0:14:15.801 want to get in touch with Property Apprentice, it is 0:14:15.881 --> 0:14:21.481 Property Apprentice dot co dot NZ. Correct with this relief. Now, 0:14:21.761 --> 0:14:24.241 by the way, I have said some text people telling 0:14:24.281 --> 0:14:26.961 me that my figures are on what the interest rates are. Look, 0:14:27.001 --> 0:14:32.601 I'm scanning a page of about probably about it one hundred, 0:14:32.841 --> 0:14:35.961 one hundred and fifty interest rates. And yes there are 0:14:36.001 --> 0:14:39.081 some cheaper ones for five point seventy five percent or 0:14:39.121 --> 0:14:42.961 five point sixty nine for two or three year mortgages. Yes, 0:14:43.001 --> 0:14:46.961 that's right, but they also some of many of those 0:14:47.041 --> 0:14:50.561 rates are if you've got decent equity. But there is 0:14:50.561 --> 0:14:52.961 one I think the Asb's offering five point six nine 0:14:52.961 --> 0:14:54.801 percent for two years. That's s actually not a bad deal, 0:14:54.881 --> 0:14:55.401 is it, Debbie. 0:14:55.801 --> 0:14:57.801 Yep, there's some pretty good deals out there at the 0:14:57.801 --> 0:14:58.521 moment for sure. 0:14:59.201 --> 0:15:00.601 So, yeah, what do you think should happen with the 0:15:00.641 --> 0:15:02.801 OCI should it continue to fall? And we'll talk to 0:15:03.081 --> 0:15:04.841 Debbi in just a moment about what she knows the 0:15:04.841 --> 0:15:07.361 ban Thanks are planning on, because they'll be thinking ahead 0:15:07.561 --> 0:15:12.401 on this one for sure. Aaron High, Hey, they have 0:15:12.521 --> 0:15:15.401 a going good Hey. 0:15:16.881 --> 0:15:22.641 Yeah, I've got a mortgage bought two years two and 0:15:22.641 --> 0:15:25.401 a half years ago now, and that was kind of 0:15:25.401 --> 0:15:27.801 when the industrates are kind of starting to kind of 0:15:28.041 --> 0:15:31.521 get up and say a little bit of those Midt 0:15:31.601 --> 0:15:35.321 late fives, hot mid six, this kind of thing, And 0:15:35.641 --> 0:15:39.601 I'm pretty happy with what I was playing. I split 0:15:39.681 --> 0:15:43.641 my mortgage onto two different rates, and so I think 0:15:43.681 --> 0:15:46.081 that's one thing that a lot of people don't know 0:15:46.121 --> 0:15:48.521 that they can do, and I think sometimes some banks 0:15:48.561 --> 0:15:51.921 don't often tell people that they can do, is even 0:15:52.081 --> 0:15:56.041 splitting your mortgage rate, your mortgage amount into a couple 0:15:56.081 --> 0:15:57.681 of amounts and then at least you can take the 0:15:57.721 --> 0:16:01.041 benefit of long term on part of it, and then 0:16:01.081 --> 0:16:03.841 you've got some on some on shore terms as well. 0:16:04.161 --> 0:16:06.321 Yeah, absolutely thinks of. 0:16:06.361 --> 0:16:07.921 His rate changes and things like that too. 0:16:08.201 --> 0:16:11.761 Really good strategy. And you know, I think I've read 0:16:11.761 --> 0:16:14.881 an article recently that said that most New Zealanders don't 0:16:14.881 --> 0:16:18.161 know that mortgage advisors are free to work with because 0:16:18.161 --> 0:16:21.281 they get paid by the banks. So like, we've always 0:16:21.321 --> 0:16:24.481 recommended that people work with a mortgage advisor because they 0:16:24.921 --> 0:16:27.281 essentially work for you even though they get paid by 0:16:27.321 --> 0:16:30.401 the banks. They work for you and your best interests, 0:16:30.681 --> 0:16:34.041 and they've got access to over twenty lenders, you know, 0:16:34.241 --> 0:16:37.281 so they can shop around, get the best deal for 0:16:37.321 --> 0:16:39.561 you and help advise you on the structures. 0:16:39.561 --> 0:16:41.641 Feet Lane, did you get yours through mortgage advisor? 0:16:41.681 --> 0:16:45.001 Did you say, Aaron, Well, I had a friend of 0:16:45.001 --> 0:16:47.921 mine who's a mortgage broker. Yes, but I've kind of 0:16:48.481 --> 0:16:51.761 I already have. I had a house about fifteen years ago, 0:16:51.801 --> 0:16:55.361 originally as my first house when I was about eighteen, 0:16:55.641 --> 0:16:57.761 and I remember interest from its back then we're about 0:16:57.801 --> 0:17:03.081 eight to eight seven eight. But I think people when 0:17:03.281 --> 0:17:06.921 interest rates were really low, people are like, oh, yeah, 0:17:07.081 --> 0:17:09.001 my borrowing power is this. I can spin up to 0:17:09.081 --> 0:17:11.721 this not thinking a head, and I'm like, Okay, if 0:17:11.721 --> 0:17:13.681 the interest rates are going to be at two percent, now, 0:17:14.161 --> 0:17:15.721 what are they going to be in two or three 0:17:15.801 --> 0:17:18.321 years when they come off the fixed rate? And then 0:17:18.481 --> 0:17:21.321 this is why people freaked out when they were five 0:17:21.361 --> 0:17:23.761 and six percent coming off their fixed rates, and they 0:17:23.801 --> 0:17:28.601 were like, because they're over capitalized, over mortgaged. 0:17:28.761 --> 0:17:30.841 I'm glad you mentioned the more that we've talked about 0:17:30.841 --> 0:17:35.081 the mortgage broker, because we used one when we first. 0:17:35.601 --> 0:17:37.481 Because I work on a property show and I meet 0:17:37.521 --> 0:17:40.961 a lot of people, somebody produced me. But I actually 0:17:41.001 --> 0:17:44.161 wasn't going to initially because I was I don't know, 0:17:44.201 --> 0:17:47.761 I just had this wasn't it in bills and built prejudice? 0:17:47.801 --> 0:17:48.921 But I thought, what do I need to go to 0:17:48.961 --> 0:17:52.241 mortgage advisor. I'll just go to the banks until somebody 0:17:52.241 --> 0:17:54.401 gave me good advice and says no, they'll and they'll 0:17:54.401 --> 0:17:56.121 also do the thinking for you on the way you 0:17:56.161 --> 0:17:59.161 can structure the mortgage because they do it all the time. 0:17:59.241 --> 0:18:00.961 And it was, yeah, and. 0:18:00.921 --> 0:18:03.641 All banks are different, you know, because it depends on 0:18:03.681 --> 0:18:06.521 your individual situation, and you know, some banks are friendlier 0:18:06.561 --> 0:18:09.121 than others if you're self employed, or if you earn 0:18:09.201 --> 0:18:13.041 bonuses or commissions, and you know, there's so many different variables. 0:18:13.041 --> 0:18:15.761 So if you go directly to a bank, they're only 0:18:15.761 --> 0:18:18.001 going to tell you about their stuff. They're not going 0:18:18.081 --> 0:18:20.161 to say they're not going to say, oh, we can't 0:18:20.161 --> 0:18:21.881 give you lending, but if you go down the road 0:18:21.921 --> 0:18:25.321 and see that bank, they'll approve it, whereas a mortgage 0:18:25.321 --> 0:18:26.001 advisor can. 0:18:27.241 --> 0:18:29.161 Yeah, that was really handy with my broker. Was like 0:18:29.761 --> 0:18:33.361 for me coming back into the property after about fifteen years, 0:18:33.001 --> 0:18:36.921 I was as a first time buyer, so there was 0:18:36.961 --> 0:18:40.361 the kind of work ins and outs of using kvsaver. 0:18:40.401 --> 0:18:44.361 I couldn't use part of my kisaver, and they knew 0:18:44.761 --> 0:18:48.161 banks that would potentially help with with the with the 0:18:48.201 --> 0:18:50.721 income and all that kind of was that what do 0:18:50.801 --> 0:18:51.481 you what. 0:18:51.441 --> 0:18:53.081 Do you think is going to happen? What do you 0:18:53.081 --> 0:18:54.681 think is going to happen with the cash? Right? Do 0:18:54.721 --> 0:18:57.441 you do you need it to for further for yourself 0:18:57.521 --> 0:18:59.761 or do you want it to fall further? And do 0:18:59.801 --> 0:19:00.881 you expect it to fall further? 0:19:02.081 --> 0:19:02.281 Yes. 0:19:02.361 --> 0:19:04.681 So, because I had my split rates, I had one 0:19:04.721 --> 0:19:07.161 for one year and one for two years. So my 0:19:07.241 --> 0:19:09.721 first year came off at the start of this year 0:19:09.881 --> 0:19:12.601 was February, and I fixed. I ended up fixing that 0:19:12.761 --> 0:19:18.881 for five years at five point nine percent, and so 0:19:19.161 --> 0:19:22.321 my second part, my second half, comes off in February 0:19:22.361 --> 0:19:24.801 next year. So I'm kind of hoping that dropped quite 0:19:24.841 --> 0:19:26.561 a bit, so that my other half will get them 0:19:26.681 --> 0:19:27.361 a slow rate. 0:19:29.761 --> 0:19:32.521 Actually, that's I think that's probably going to be quite 0:19:32.521 --> 0:19:35.321 good timing if that's coming off in February, because I mean, 0:19:35.361 --> 0:19:39.241 the financial markets are certainly factoring in big drops between 0:19:39.281 --> 0:19:39.801 now and then. 0:19:39.961 --> 0:19:44.481 So yeah, good, thanks for call Aaron. Good on your mate. Yes, okay, 0:19:44.481 --> 0:19:47.521 bye bye. Actually, how many ways can you put your 0:19:47.521 --> 0:19:50.201 mortgage realistically? Because there would be people who for sure 0:19:50.921 --> 0:19:54.561 have In fact, I would imagine that most people would 0:19:54.641 --> 0:19:57.241 have a revolving aspect to their mortgage. 0:19:57.601 --> 0:20:00.321 Oh you might be surprised, I'd say most people don't. 0:20:01.081 --> 0:20:05.401 Isn't that funny because I just assumed that that you'd 0:20:05.441 --> 0:20:08.001 have a revolving one that you would put everything into 0:20:08.121 --> 0:20:11.041 to try and reduce whatever you had on that or 0:20:11.441 --> 0:20:14.121 some aspects, even if it's ten twenty thirty thousand, so 0:20:14.161 --> 0:20:17.121 it's like your living expenses. But if you can be frugal, 0:20:17.201 --> 0:20:18.161 you can pay that off. 0:20:18.481 --> 0:20:21.321 Yeah, revolving credits and offset that wants are a great 0:20:21.361 --> 0:20:23.401