WEBVTT - Debbie Roberts: Restructure your mortgage 0:00:05.761 --> 0:00:09.401 You're listening to the Weekend Collective podcast from News Talks. 0:00:09.401 --> 0:00:09.721 I'd be. 0:00:29.881 --> 0:00:33.521 As welcome back to the Weekend Collective. I'm Tim Beverage. Now, 0:00:33.681 --> 0:00:35.361 by the way, if you've missed our panel, or if 0:00:35.401 --> 0:00:36.961 you do happen to miss any of the hours you 0:00:37.001 --> 0:00:38.401 have to nip out or something you think I want 0:00:38.481 --> 0:00:39.841 to catch the end of that, you can go check 0:00:39.881 --> 0:00:42.881 out our podcast on the Weekend Collective. You can just 0:00:42.921 --> 0:00:46.241 go to the News Talks website or iHeartRadio and we 0:00:46.321 --> 0:00:48.721 get the hours loaded pretty quick after they've concluded, so 0:00:48.761 --> 0:00:52.641 you can jump on that anyway. Now it's onto the 0:00:52.681 --> 0:00:55.081 One Roof radio show and we're going to have a 0:00:55.161 --> 0:00:57.521 chat about now that the interest rates the cash rates 0:00:57.561 --> 0:01:00.521 dropped another twenty five points and things seem to be 0:01:00.561 --> 0:01:04.121 getting to that feeling where maybe this is sort of 0:01:04.201 --> 0:01:07.161 roughly where we're going to. And so the question around 0:01:07.161 --> 0:01:10.321 making commitments, but also how should you actually structure your 0:01:10.321 --> 0:01:14.801 mortgage if you're looking to refix your mortgage or you wait, 0:01:14.921 --> 0:01:16.481 you're going to float for a while while you wait 0:01:16.521 --> 0:01:19.401 for another announcement, or and at what point isn't worth 0:01:19.441 --> 0:01:21.041 breaking your mortgage at the lower rate, But just the 0:01:21.041 --> 0:01:24.281 whole question around restructuring. And I mentioned this partly because 0:01:24.281 --> 0:01:26.641 I've just recently restructured my mortgage and there was a 0:01:26.641 --> 0:01:29.561 bit of a miscommunication with the bank which did cause 0:01:29.601 --> 0:01:32.801 a fair wack of stress. But to be fair to 0:01:32.841 --> 0:01:34.601 the bank, they actually have said, look, if that's what 0:01:34.641 --> 0:01:38.681 you understood, we're going to sort that out. Somebody might say, well, 0:01:38.681 --> 0:01:40.641 you should have talked to mortgage broke about I guess 0:01:40.641 --> 0:01:42.801 there wasn't enough money at stake really, But anyway, we're 0:01:42.801 --> 0:01:45.561 going to talk about fixing your mortgage in the ways 0:01:45.641 --> 0:01:49.921 you should restructure your mortgage as well. But also if 0:01:50.241 --> 0:01:53.081 now is the time when things are getting to a 0:01:53.121 --> 0:01:56.001 point where the interest rates are sort of settled, we're 0:01:56.041 --> 0:01:57.521 not going to We don't think we're going to see 0:01:57.521 --> 0:01:59.801 too much of a shift because we've seen some certainly 0:01:59.881 --> 0:02:04.001 seen a roller coaster lately. I want to know what 0:02:04.041 --> 0:02:08.401 it takes to go from being on the sidelines looking 0:02:08.401 --> 0:02:10.561 at things thinking I'd love to do that, love to 0:02:10.561 --> 0:02:13.641 buy a house, maybe we should do it someday. What 0:02:14.281 --> 0:02:16.681 did it take or does it take to change your 0:02:16.721 --> 0:02:20.841 mindset and what clinches it for you or has clinched 0:02:20.881 --> 0:02:23.001 it for you to take your first step into property 0:02:23.441 --> 0:02:25.961 now somebody who's talking about that stuff all the time 0:02:26.401 --> 0:02:30.601 because she's from Property Apprentice, she's an investment coach and 0:02:30.641 --> 0:02:32.481 her name is Debbie Robertson. She's with me. Now get 0:02:32.521 --> 0:02:33.841 a Debby. How you going good? 0:02:33.881 --> 0:02:34.801 How are you good? 0:02:34.841 --> 0:02:38.401 Do you find I mean, do you get the feeling 0:02:38.481 --> 0:02:40.081 that it does be on what we weekend into that 0:02:40.121 --> 0:02:42.841 time with interest rates that it's sort of you know, 0:02:44.921 --> 0:02:46.481 you've got nothing else to wait for. We're not going 0:02:46.521 --> 0:02:47.801 to really see a hell of a lot more movement, 0:02:47.841 --> 0:02:49.681 are we, Or do you sort of think, well, don't 0:02:49.681 --> 0:02:51.881 make those predictions, beverage. Who knows what's going to happen. 0:02:52.161 --> 0:02:54.401 Honestly, this is where you wish she had a crystal ball, 0:02:54.881 --> 0:02:58.561 because there's so much volatility going on in the US 0:02:58.641 --> 0:03:02.081 at the moment that literally anything could happen. The New 0:03:02.201 --> 0:03:05.241 Zealand Reserve Bank has indicated that the next now and 0:03:05.401 --> 0:03:07.721 next announcement is going to be another cut of zero 0:03:07.721 --> 0:03:10.401 point twenty five, so you know there is room for 0:03:10.521 --> 0:03:13.841 things to move. The longer term interest rates are the 0:03:13.881 --> 0:03:17.001 ones that are affected by overseas, so you know, if 0:03:17.041 --> 0:03:19.721 we get inflation in the US, then we could get 0:03:19.721 --> 0:03:22.721 more drops in the long term interest rates. If we 0:03:23.441 --> 0:03:26.881 don't get inflation in the US and the economy stalls 0:03:27.001 --> 0:03:30.921 over there, then we might see we might see further cuts. 0:03:31.921 --> 0:03:35.721 It literally could go either way. So who knows. 0:03:36.281 --> 0:03:38.721 Okay, Yeah, because I had, for some reason assumed that 0:03:38.801 --> 0:03:41.761 this was sort of getting to. Maybe the reason I'm 0:03:41.761 --> 0:03:43.761 thinking that is because we've got to what we might 0:03:43.801 --> 0:03:47.281 anticipate to be a fair, manageable sort of rate of mortgages. 0:03:47.361 --> 0:03:50.801 Now, yeah, we're definitely below the long term average. I 0:03:50.841 --> 0:03:53.961 mean I worked out the ten year or twenty year 0:03:54.001 --> 0:03:56.921 average up to the start of COVID when the Reserve 0:03:57.001 --> 0:03:59.201 Bank slashed the OCA, and it works out to be 0:03:59.201 --> 0:04:03.121 about six point three five percent on average. So everything 0:04:03.161 --> 0:04:06.321 except for the floating rate is now bel the average, 0:04:06.721 --> 0:04:10.241 and floating rates came down almost immediately after the Reserve 0:04:10.321 --> 0:04:11.161 Bank announcement. 0:04:11.521 --> 0:04:14.041 Actually, I noticed with my bank that their one, two, 0:04:14.081 --> 0:04:17.201 three year rates didn't change. But there in fact, when 0:04:17.201 --> 0:04:18.921 I was talking to them about the issue I had, 0:04:19.401 --> 0:04:21.201 they said, I said, by the way, is this going 0:04:21.241 --> 0:04:22.841 to work in My favorite said, no, there's no change. 0:04:22.841 --> 0:04:24.561 You said, You've got a pretty good rate, which I do, 0:04:24.841 --> 0:04:26.761 but he said, the floating rate's going to come down. 0:04:27.041 --> 0:04:30.361 Yeah, the floating rate, and interestingly, the test rates have 0:04:30.481 --> 0:04:33.961 come down as well. So test rates are the interest 0:04:34.041 --> 0:04:37.881 rate that banks test your affordability. Yet so now most 0:04:37.921 --> 0:04:40.961 of them are sitting around the seven percent mark, whereas 0:04:41.121 --> 0:04:42.561 you know at the peak of the market they were 0:04:42.561 --> 0:04:44.121 testing at around nine percent. 0:04:44.441 --> 0:04:47.041 Why well, why say they saw around so much? 0:04:47.401 --> 0:04:49.881 It's a safety imagine. So you know, banks have got 0:04:49.921 --> 0:04:52.801 this responsible lending code, so they need to make sure 0:04:52.841 --> 0:04:54.441 that you're going to be able to afford to pay 0:04:54.521 --> 0:04:57.481 the mortgage if interest rates or when interest rates go 0:04:57.561 --> 0:04:58.281 back up again. 0:04:58.561 --> 0:05:01.161 So there was a time when, you know, when the 0:05:01.161 --> 0:05:03.361 market was going nuts, and there have been a couple 0:05:03.401 --> 0:05:05.281 of times obviously when money was really cheap with the 0:05:05.321 --> 0:05:08.561 FOMO years, and you know, when it seemed that if 0:05:08.561 --> 0:05:10.241 you could get the leverage, you were a dummy not 0:05:10.281 --> 0:05:12.241 to get into the market, although were plenty of people 0:05:12.241 --> 0:05:16.521 who didn't, but nobody really considered the safety margin themselves. 0:05:16.561 --> 0:05:17.761 All they wanted to do is can I get the 0:05:17.761 --> 0:05:21.481 mortgage away we go. I had some advice from a 0:05:21.521 --> 0:05:24.161 friend saying, look, you, when you do get a mortgage, 0:05:24.201 --> 0:05:26.801 you should always make sure that if interest rates, if 0:05:26.841 --> 0:05:29.401 your mortgage rate gets to eight percent, that's a number 0:05:29.401 --> 0:05:31.761 he packed. He said, you should always become confident you 0:05:31.761 --> 0:05:35.081 could hang on. How important do you think it is 0:05:35.801 --> 0:05:39.961 that we consider safety margins absolutely well. I don't know 0:05:39.961 --> 0:05:41.841 how many people do. How many people do I don't 0:05:41.841 --> 0:05:44.281 think anyone does. They just go what's moment mortgage rate? 0:05:44.321 --> 0:05:46.241 Lock it in for four years, happy days. 0:05:46.321 --> 0:05:48.401 Yeah, And it's one of the things that we always 0:05:48.401 --> 0:05:51.761 talk to our clients about is testing your own affordability, 0:05:51.761 --> 0:05:53.801 because just because the banks is you can borrow a 0:05:53.841 --> 0:05:56.161 certain amount of money doesn't mean that you can actually 0:05:56.201 --> 0:06:00.601 afford it. So always test. I'd suggest testing at interest 0:06:00.681 --> 0:06:03.241 rates of around seven and a half or seven percent, 0:06:03.801 --> 0:06:06.401 because what we've seen over the past few decades is 0:06:06.441 --> 0:06:09.281 the interest rates have been coming down over the you know, 0:06:09.561 --> 0:06:13.081 but they have been trending lower and lower. The COVID 0:06:13.161 --> 0:06:16.481 rates were way abnormal that I certainly wouldn't expect them 0:06:16.521 --> 0:06:17.521 to get that low again. 0:06:17.641 --> 0:06:20.081 But I wonder if there's anyone who's still smugly just 0:06:20.081 --> 0:06:22.281 coming to the end of that two point nine nine percent, 0:06:22.641 --> 0:06:24.001 what did you get down to? Was it two point 0:06:24.081 --> 0:06:24.681 nine or was it. 0:06:25.241 --> 0:06:27.441 There were a couple at two point five and two 0:06:27.441 --> 0:06:29.961 point nine yees, So we've still got one of those. 0:06:30.081 --> 0:06:34.801 I'm sure you have personally. Oh, just scouting right now. 0:06:34.881 --> 0:06:35.201 I know. 0:06:36.801 --> 0:06:38.441 Actually, we'd love to hear from you when you come 0:06:38.481 --> 0:06:41.281 to about this. When you're when you're organizing your mortgage, 0:06:41.281 --> 0:06:43.961 what do you test yourself out on, because that's a 0:06:44.001 --> 0:06:46.801 part of the that's the whole part of the equation. 0:06:46.921 --> 0:06:50.361 Maybe the bank's testing your your ability to service a debt. 0:06:50.401 --> 0:06:53.081 But I think I've found that what the bank thinks 0:06:53.081 --> 0:06:54.761 I can afford as a hell of a lot more 0:06:54.801 --> 0:06:57.121 than I'd ever want to pay. Absolutely, so we love 0:06:57.201 --> 0:06:58.801 your calls. I know what undred eighty ten to eighty 0:06:58.841 --> 0:07:03.161 tixt nine two nine two. And the other thing about 0:07:03.521 --> 0:07:06.681 structuring mortgage is how many people actually would go initially 0:07:06.761 --> 0:07:08.961 onto a floating rate simply just because they're like, well, 0:07:08.961 --> 0:07:10.721 I'll wait and see what happens the next little while. 0:07:11.081 --> 0:07:13.441 I think at the moment, more and more people are 0:07:13.441 --> 0:07:15.961 looking at fixing. You know, we went through a period 0:07:16.041 --> 0:07:18.361 where there were a huge number of mortgages that were 0:07:18.361 --> 0:07:21.201 on floating rates or just six month mortgage rates, and 0:07:21.241 --> 0:07:23.521 now people are starting to look at the longer term 0:07:23.601 --> 0:07:27.801 rates as well. I think my opinion has always been 0:07:27.881 --> 0:07:31.041 even before I became a mortgage advisor. Why do it 0:07:31.081 --> 0:07:33.601 yourself if you can get someone who's in the industry 0:07:33.641 --> 0:07:35.601 to do it for you. Tom Wow. 0:07:35.761 --> 0:07:38.401 Actually the reason I didn't because mine's got down a 0:07:38.441 --> 0:07:41.681 bit and I just assumed. In fact, I did speak 0:07:41.681 --> 0:07:44.561 to a mortgage broker a couple of fixes ago, maybe 0:07:44.601 --> 0:07:47.881 a couple of years ago, and he just he said, 0:07:47.921 --> 0:07:50.241 what are you What are you being offered by the bank? 0:07:50.681 --> 0:07:53.521 And I said X And he said, just go with 0:07:53.561 --> 0:07:55.641 the bank. You know that's as good as I'll get you. Must, 0:07:55.681 --> 0:07:57.521 well just do that, mind you. I wasn't looking at 0:07:57.521 --> 0:07:58.521 restructuring anything. 0:07:58.761 --> 0:08:00.721 No, And I think that's the thing, like, if you've 0:08:00.761 --> 0:08:03.561 got a good mortgage advisor, they're there for you for 0:08:03.641 --> 0:08:07.361 the entire duration your mortgage. Whereas you know, often if 0:08:07.401 --> 0:08:09.401 you're dealing with the bank, you see a different person 0:08:09.441 --> 0:08:11.841 every single time you go there, or you might not 0:08:11.881 --> 0:08:14.001 even see someone these days, you just talk to them. 0:08:14.041 --> 0:08:15.841 How does that work out from a mortgage broker's point 0:08:15.841 --> 0:08:18.121 of view? If you've you've had your own mortgage, you've 0:08:18.121 --> 0:08:19.841 managed it yourself, and you decide you want to go 0:08:19.841 --> 0:08:22.361 to a broker, how does how do they end up 0:08:22.361 --> 0:08:25.961 getting paid because you've got an existing you know, been 0:08:25.961 --> 0:08:27.881 doing things with the bank. You're not changing much, but 0:08:27.921 --> 0:08:29.481 you're going to get a mortgage broker to help you 0:08:29.521 --> 0:08:31.041 do They just how does that work? 0:08:31.121 --> 0:08:35.161 There's a couple of different there's a couple of different methods. Basically, 0:08:35.241 --> 0:08:38.241 if it's something like an interest rate review, the banks 0:08:38.361 --> 0:08:40.841 either pay you a little bit to do that to 0:08:40.921 --> 0:08:43.961 service the client for them, or you get you know, 0:08:44.201 --> 0:08:47.161 I mean sometimes that happens. Other times the banks have 0:08:47.321 --> 0:08:50.641 what they call a trail commission, so you get paid 0:08:50.641 --> 0:08:54.041 a little bit each month in order to continue looking 0:08:54.081 --> 0:08:54.961 after that client. 0:08:55.241 --> 0:08:57.881 Okay, we love your callse We one hundred and eighty 0:08:57.961 --> 0:09:01.161 ten eighty around. How do you approach restructuring your mortgage? 0:09:01.721 --> 0:09:04.481 And I mean you might have learned a few lessons 0:09:04.481 --> 0:09:06.401 like I did the day about making sure I clearly 0:09:06.481 --> 0:09:09.241 understood what the bank was talking about until there's a misunderstanding, 0:09:09.281 --> 0:09:11.441 because that can be quite stressful, and not going to 0:09:11.441 --> 0:09:14.761 talk about that too much because they have sorted it out. Debbie. 0:09:14.801 --> 0:09:18.761 So what is the when people come to see you 0:09:19.961 --> 0:09:22.361 property apprentice? I mean, actually how I think? Just out 0:09:22.401 --> 0:09:25.201 of curiosity, how are you getting busier these days? What's 0:09:25.201 --> 0:09:25.521 going on? 0:09:25.721 --> 0:09:25.921 Yeah? 0:09:26.001 --> 0:09:29.161 Last year definitely started to pick up for us, you know, 0:09:29.361 --> 0:09:31.001 I mean, we went through a couple of years where 0:09:31.001 --> 0:09:33.001 it was a bit lean, so we were just looking 0:09:33.041 --> 0:09:35.961 after our existing clients and the odd new ones that 0:09:36.041 --> 0:09:40.401 were seeing the opportunities out there. So last year definitely 0:09:40.441 --> 0:09:42.921 started to pick up. This year has been a little 0:09:42.921 --> 0:09:45.561 bit slower to start, but certainly starting to pick up 0:09:45.561 --> 0:09:48.761 now as well. So I think one of the things 0:09:48.801 --> 0:09:51.921 that we've always seen in the property market, because I mean, 0:09:52.001 --> 0:09:54.521 Paul and I have been in the industry for a 0:09:54.641 --> 0:09:58.281 quarter of a century, but you know, we've been running 0:09:58.321 --> 0:10:01.881 Property Apprentice for about fifteen years now, and one of 0:10:01.881 --> 0:10:04.921 the things that we've always seen is that the gen 0:10:05.241 --> 0:10:09.201 all public start getting really interested in property investing when 0:10:09.201 --> 0:10:13.321 we're in a booming market, and yet most property investors 0:10:13.841 --> 0:10:17.201 would far prefer to be investing in the current property 0:10:17.241 --> 0:10:20.681 market when there's less competition from other buyers. You can 0:10:20.721 --> 0:10:23.321 negotiate good deals without feeling like you've got to make 0:10:23.361 --> 0:10:25.841 a decision in a hurry. But you know, we're a 0:10:25.921 --> 0:10:26.641 nation of sheep. 0:10:26.801 --> 0:10:30.041 Are people who come to you are they coming as 0:10:30.081 --> 0:10:33.761 investors you've ordered or first home buyers? How does that? 0:10:34.041 --> 0:10:37.601 It's really interesting because that's something that we've definitely seen 0:10:37.641 --> 0:10:40.081 a change in over the past few years. You know, 0:10:40.121 --> 0:10:43.961 when we first started Property Apprentice, it was mostly investors. 0:10:45.081 --> 0:10:48.641 Now where we get a mix of first home buyers 0:10:48.681 --> 0:10:52.281 who want to invest further down the track and experienced 0:10:52.321 --> 0:10:55.521 investors as well as brand new investors. And I guess 0:10:55.521 --> 0:10:58.881 part of that could be because we've kind of changed 0:10:58.881 --> 0:11:01.081 the way that we do things over time as well, 0:11:01.161 --> 0:11:04.401 so now we incorporate the full financial plans and you know, 0:11:04.721 --> 0:11:07.001 time planning and all that sort of stuff as well. 0:11:07.081 --> 0:11:11.161 So I guess our clients get a bigger base rather 0:11:11.201 --> 0:11:12.441 than just coaching. 0:11:12.361 --> 0:11:14.721 So you're not really dealing with first time buyers so much. 0:11:15.161 --> 0:11:18.321 Yeah, we're dealing with more first home buyers now than 0:11:18.361 --> 0:11:21.481 we did when we first started. So yeah, it's quite 0:11:21.481 --> 0:11:26.161 interesting because we're seeing the younger people that are looking 0:11:26.201 --> 0:11:28.281 to purchase their first time they want to make sure 0:11:28.281 --> 0:11:30.441 that they do it well so that they've got a good, 0:11:30.521 --> 0:11:32.961 solid foundation to move forward from there. 0:11:33.681 --> 0:11:35.921 I guess with you with your business, when people come 0:11:35.921 --> 0:11:37.401 to you, they've already made a decision. They want to 0:11:37.401 --> 0:11:40.681 get into the property investing, don't they. Yeah, So it's 0:11:40.761 --> 0:11:42.841 not so much a question because one of the things 0:11:42.841 --> 0:11:45.561 I wanted to explore along the lines of the restructuring 0:11:45.601 --> 0:11:49.801 mortgages is what does it take for people to go 0:11:50.041 --> 0:11:54.361 from the mindset of watching or maybe having a casual 0:11:54.401 --> 0:11:57.481 curiosity and something to actually going I'm actually going to 0:11:57.521 --> 0:11:59.841 do it. Because I mean, even with me, it hadn't 0:11:59.841 --> 0:12:02.881 been for my wife saying to me, look, we're starting 0:12:02.921 --> 0:12:06.121 a family, we need to let's look at buying asean. 0:12:06.161 --> 0:12:09.961 That extra impetus for me was what made the difference. 0:12:10.001 --> 0:12:12.401 Probably whereas I'd been sitting you know, you'd think I 0:12:12.401 --> 0:12:14.001 should do this, I should do it, I should do it, 0:12:14.041 --> 0:12:16.801 and I think we whether it be property, people have 0:12:16.881 --> 0:12:19.281 those moments in their lives with all sorts of things. Yeah, 0:12:19.481 --> 0:12:21.281 about making it because it's a commitment. 0:12:21.441 --> 0:12:25.001 Absolutely. One of the things that we've always noticed is 0:12:25.521 --> 0:12:28.161 for the clients of ours that are first home buyers, 0:12:28.161 --> 0:12:32.481 Oftentimes they start looking at purchasing a home either because 0:12:32.521 --> 0:12:34.681 they're looking at having a family and they want to 0:12:34.681 --> 0:12:37.401 make sure that you know, they can set down routes 0:12:37.481 --> 0:12:39.241 in a house that they can stay in for a 0:12:39.281 --> 0:12:41.921 while without having to worry about the landlord selling it 0:12:42.161 --> 0:12:46.321 or whatever. Sometimes it's because market rents get to a 0:12:46.361 --> 0:12:48.761 point where they're like, heck, you know, we may as 0:12:48.761 --> 0:12:51.761 well just buy ourselves a home and start paying towards 0:12:51.761 --> 0:12:55.561 our own mortgage rather than helping the landlord pay theirs, 0:12:55.681 --> 0:12:58.361 which is fair enough as well. So yeah, there's a 0:12:58.361 --> 0:13:03.201 real mix in the first home buyer market for property investors. 0:13:03.361 --> 0:13:06.601 It tends to. I mean, property always does well when 0:13:06.601 --> 0:13:09.521 there's lots of uncertainty like we're seeing at the moment 0:13:09.641 --> 0:13:13.361 in the US, because share market starts looking a little 0:13:13.361 --> 0:13:15.481 bit wobbly, so people look at things that are a 0:13:15.481 --> 0:13:19.681 bit more stable, like the property market or gold or 0:13:19.761 --> 0:13:23.601 you know, precious metals, all that sort of stuff. So yeah, 0:13:23.641 --> 0:13:27.041 property is a much more stable, Like we don't get 0:13:27.041 --> 0:13:29.761 the daily ups and downs like the share market does. 0:13:29.881 --> 0:13:32.521 I guess it probably doesn't. Emotionally, people don't feel like 0:13:32.841 --> 0:13:35.201 it's been that stable lately because we've seen all those 0:13:35.201 --> 0:13:38.441 interest rates things. So how does the global situation time 0:13:38.521 --> 0:13:40.601 to a sense of stability when we don't know? I mean, 0:13:40.681 --> 0:13:46.201 job stabilities, job stabilities, you know, recessions, global recessions. Those 0:13:46.241 --> 0:13:49.761 are things that feed instability for people's towards. 0:13:49.561 --> 0:13:53.561 Any definitely, and I think that's potentially the biggest reason 0:13:53.601 --> 0:13:56.001 that we don't have a lot more buyers in the 0:13:56.041 --> 0:13:59.961 market at the moment. I saw a survey recently that said, 0:14:00.201 --> 0:14:01.921 I can't remember the figure off the top of my head, 0:14:01.921 --> 0:14:04.001 but it was huge. It was like sixty five or 0:14:04.041 --> 0:14:07.161 seventy percent of New Zealanders are actually worried about job 0:14:07.241 --> 0:14:11.161 loss at the moment. Yeah, it was huge. So if 0:14:11.161 --> 0:14:14.041 anyone remembers what the figure is, let us know. But 0:14:14.201 --> 0:14:17.321 it was it was high. And I remember thinking at 0:14:17.361 --> 0:14:20.241 the time, that's you know, when when we're looking at 0:14:20.881 --> 0:14:23.801 public perception like that, it's no wonder we don't have 0:14:23.881 --> 0:14:26.361 more buyers in the market at the moment, because who's 0:14:26.401 --> 0:14:27.921 going to go out and buy a home if they're 0:14:27.961 --> 0:14:29.041 worried about losing. 0:14:28.801 --> 0:14:30.961 Their job, I guess, except the only other thing is 0:14:31.121 --> 0:14:33.881 you are paying for accommodations somehow anyway. But of course 0:14:34.001 --> 0:14:36.801 these days, generally your mortgage is going to be more 0:14:36.841 --> 0:14:37.881 than your share of. 0:14:37.881 --> 0:14:39.921 The rent in most situations. 0:14:40.041 --> 0:14:42.921 Yes, look, we'd love to have your cause on. There's 0:14:42.921 --> 0:14:44.561 a couple of things we're looking at about. It's about 0:14:44.561 --> 0:14:48.041 restructuring the mortgages and you know, have you I mean, 0:14:48.441 --> 0:14:51.041 for a lot of people it's something where they might go, well, 0:14:51.281 --> 0:14:53.521 I'm on this interest rate. Interest rates have dropped through 0:14:53.521 --> 0:14:55.761 the floor. I want to talk to the bank about 0:14:56.081 --> 0:14:59.481 about restructuring and maybe breaking my mortgage in fact, on 0:14:59.521 --> 0:15:01.481 that just before we go to the break. How often 0:15:01.521 --> 0:15:05.361 do people actually make that calculation and how ba does 0:15:05.361 --> 0:15:06.881 it go for them with the banks when it comes 0:15:06.921 --> 0:15:09.001 to breaking an existing mortgage rate. 0:15:09.161 --> 0:15:13.281 People don't often do that calculation themselves, but it's certainly 0:15:13.321 --> 0:15:16.161 something that mortgage advisors will do for you, and the 0:15:16.201 --> 0:15:18.561 banks will tell you how much a break feel cost you. 0:15:18.841 --> 0:15:21.001 So if you if you weren't wondering what it's going 0:15:21.081 --> 0:15:22.961 to look like, phone your bank up and say, hey, 0:15:23.041 --> 0:15:25.921 if I break this fixed rate now, how much is 0:15:25.961 --> 0:15:27.961 that going to cost? And then you can work it 0:15:28.001 --> 0:15:30.201 out yourself if you're that way inclined. 0:15:30.441 --> 0:15:33.281 Actually, I did my calculations on our mortgage on what 0:15:33.361 --> 0:15:37.601 these scenarios were with using AI because I've I've got 0:15:37.601 --> 0:15:40.801 a conversational chat GPT excellent, and I said, this is 0:15:40.801 --> 0:15:42.961 my mortgage, this is what I've got to pay off it. 0:15:43.921 --> 0:15:45.721 How much will I save if I pay it off 0:15:45.881 --> 0:15:47.961 in this fashion and such and such, And I've got 0:15:47.961 --> 0:15:50.641 a very conversation. It's an English English woman's voice that 0:15:50.681 --> 0:15:57.081 comes up. Good question, Tim, I'll tell and actually ais certainly, 0:15:58.281 --> 0:16:02.321 of course it does say double check everything. But yeah, actually, 0:16:02.321 --> 0:16:04.241 before we got to the break, let's take a text here. Hi, Tim, 0:16:04.241 --> 0:16:06.881 can you ask Debbie if there is an age limit 0:16:06.921 --> 0:16:10.521 on mortgage to buy an investment property. We're in our sixties, 0:16:11.041 --> 0:16:13.281 no mortgage, but we want to move to another province 0:16:13.321 --> 0:16:14.841 in a year or so. Could we get a loan 0:16:15.401 --> 0:16:17.601 and rent the property out our age? 0:16:18.121 --> 0:16:21.081 Yeah, as long as you've got enough provable income. So 0:16:21.761 --> 0:16:26.041 when you already own a property, banks are still often 0:16:26.201 --> 0:16:28.761 quite happy to lend you money as long as you've 0:16:28.761 --> 0:16:32.201 still got provable income, so they don't have to worry 0:16:32.201 --> 0:16:34.361 about how you're going to pay the mortgage, you know, 0:16:34.521 --> 0:16:37.681 and they'll take a percentage of the rent. If you're 0:16:37.681 --> 0:16:40.201 buying an investment property, they'll take a percentage of the 0:16:40.201 --> 0:16:43.721 weekly rent and add it to your personal income. But 0:16:43.921 --> 0:16:47.041 if you don't already own a home, if you're in 0:16:47.081 --> 0:16:50.081 your sixties, you might be lucky to get a fifteen 0:16:50.161 --> 0:16:53.281 year loan term, whereas if you already own your own home, 0:16:53.321 --> 0:16:55.801 you could still potentially get a thirty year loan term 0:16:55.841 --> 0:16:57.161 on an investment property. 0:16:57.481 --> 0:17:00.481 Right, we'd love your cause eight hundred eighty, eight hundred 0:17:00.481 --> 0:17:02.161 and eighty ten eight. If you've got any questions for 0:17:02.161 --> 0:17:06.761 Debi Roberts from property from sorry proper apprentice, then give 0:17:06.841 --> 0:17:09.801 us called eight hundred eighty ten eighty. But also what 0:17:09.881 --> 0:17:12.241 clinched it for you to take your first step into property? 0:17:12.241 --> 0:17:14.201 Because it feels to me that we are at a 0:17:14.281 --> 0:17:16.561 time when there might be a few people saying In fact, 0:17:17.001 --> 0:17:19.281 I'm not just saying that because I reckon this. I 0:17:19.321 --> 0:17:22.161 have had a conversation conversation with some younger people, a 0:17:22.161 --> 0:17:24.121 couple of whom have said, you know, I'm getting my 0:17:24.121 --> 0:17:27.161 money together. I'm thinking actually that we're going to find 0:17:27.201 --> 0:17:29.121 out what we can borrow, and we're going to start 0:17:29.161 --> 0:17:32.401 making a decision. And the reason for them is simply 0:17:32.441 --> 0:17:34.241 that they think this is the time to buy. I guess, 0:17:34.281 --> 0:17:36.081 but what was it? What was it for you that 0:17:36.161 --> 0:17:40.281 clinched your decision to make the biggest of commitments. Some 0:17:40.401 --> 0:17:42.921 might argue eight hundred eighty ten eighty text nineteen nine 0:17:42.961 --> 0:17:44.761 two back in just a moment, news talks, he'd be 0:17:54.081 --> 0:17:55.761 it's welcome back to the weekend collective. This is one 0:17:55.841 --> 0:17:58.561 roof Riddy Issha. My guest is Debbie Roberts from Property Apprentice. 0:17:58.801 --> 0:18:02.161 We're talking about ways to structure your mortgage, so maybe 0:18:02.401 --> 0:18:04.121 you don't even need to break it for a lower 0:18:04.161 --> 0:18:05.961 interest rate, because they're all sorts of ways to skin 0:18:06.001 --> 0:18:08.121 a cat, as they say, because a lot of people. 0:18:08.641 --> 0:18:11.201 I have this idea in my head that a lot 0:18:11.241 --> 0:18:13.481 of people, when they get their first mortgage, Debbie as 0:18:13.561 --> 0:18:16.881 they just go right and borrowing god knows what. Let's 0:18:16.881 --> 0:18:18.921 say four hundred thousand dollars just for fun, which would 0:18:18.921 --> 0:18:20.681 be quite a low mortgage for a first time buyer. 0:18:21.081 --> 0:18:22.121 Depends on what you're buying. 0:18:22.241 --> 0:18:26.401 But yeah, yes, I'm thinking Auckland. But I would imagine 0:18:26.401 --> 0:18:28.441 most people just go, well, what's the lowest interest rate 0:18:28.481 --> 0:18:30.961 four hundred grand, let's slap it on that and take 0:18:31.001 --> 0:18:34.121 the best rate we can get. But is that quite 0:18:34.201 --> 0:18:35.321 common form? 0:18:35.841 --> 0:18:38.601 I think that's probably quite common with people that go 0:18:38.721 --> 0:18:41.801 directly to their bank. Someone who's getting a bit of 0:18:42.081 --> 0:18:45.561 good financial support behind them or financial advice behind them 0:18:45.561 --> 0:18:49.561 would generally look at splitting your mortgage so that you 0:18:49.641 --> 0:18:52.561 could have some of it on short term interest rates 0:18:52.721 --> 0:18:54.921 in the hope that interest rates keep coming down, and 0:18:54.961 --> 0:18:57.001 then maybe look at fixing some of it for a 0:18:57.081 --> 0:18:59.441 longer term for long term security. 0:18:59.681 --> 0:19:01.481 Okay, we might have dig into this bit more about 0:19:01.481 --> 0:19:03.881 how you constructure it, because there are suggestions from people 0:19:03.921 --> 0:19:06.401 that if you structure your mortgage the right way, maybe 0:19:06.481 --> 0:19:09.481 you don't feel the urgent need to break it to 0:19:09.641 --> 0:19:11.681 refix it at a lower rate, but of course, depending 0:19:11.721 --> 0:19:13.601 on how much that's dropped. But let's take some calls Ray. 0:19:13.681 --> 0:19:16.281