WEBVTT - Can Refinancing Really Save You Thousands? 0:00:00.600 --> 0:00:01.040 Hello. 0:00:01.480 --> 0:00:04.960 My name's Santasha Nabananga Bamblet. I'm a proud or the 0:00:05.080 --> 0:00:08.680 Order Kerni Whaltbury and a waddery woman. And before we 0:00:08.760 --> 0:00:11.399 get started on She's on the Money podcast, I would 0:00:11.440 --> 0:00:14.440 like to acknowledge the traditional custodians of the land of 0:00:14.480 --> 0:00:18.599 which this podcast is recorded on a wondery country, acknowledging 0:00:18.640 --> 0:00:22.520 the elders, the ancestors and the next generation coming through 0:00:23.000 --> 0:00:27.080 as this podcast is about connecting, empowering, knowledge sharing and 0:00:27.160 --> 0:00:30.520 the storytelling of you to make a difference for today 0:00:30.960 --> 0:00:33.040 and lasting impact for tomorrow. 0:00:33.240 --> 0:00:34.120 Let's get into it. 0:00:34.280 --> 0:00:53.519 She's on the Money, She's on the Money. 0:00:57.120 --> 0:00:59.840 Hello, and welcome to She's on the Money, the podcast 0:01:00.160 --> 0:01:03.080 here to remind you that your financial loyalty could be. 0:01:03.120 --> 0:01:05.440 Quietly costing you thousands of dollars. 0:01:05.920 --> 0:01:09.199 I'm Victoria Devine and if you don't know, I'm also 0:01:09.280 --> 0:01:12.240 the founder and director of Zela Money, your go to 0:01:12.400 --> 0:01:15.520 team of mortgage finance experts, and today we're going to 0:01:15.600 --> 0:01:18.919 dive into a topic that could literally put money into 0:01:19.000 --> 0:01:23.360 your back pocket, refinancing. And today we are definitely mixing 0:01:23.400 --> 0:01:25.720 things up. Instead of Beck or instead of Jess by 0:01:25.760 --> 0:01:28.920 my side, I've brought in someone who lives and breathes 0:01:29.080 --> 0:01:31.440 this stuff, because if we're going to talk about refinancing, 0:01:31.480 --> 0:01:33.119 I want you to hear from someone who actually does 0:01:33.160 --> 0:01:36.240 it every single day. Jacqueline Walsh has been on the 0:01:36.240 --> 0:01:39.000 show before and she is one of our senior brokers 0:01:39.000 --> 0:01:41.560 at Zela Money, and she's no stranger to the podcast. 0:01:41.880 --> 0:01:45.120 When she joined us last time, the community were obsessed 0:01:45.120 --> 0:01:48.240 and I mean same like I get it, So of 0:01:48.320 --> 0:01:49.520 course we had to get her back. 0:01:49.600 --> 0:01:51.400 Jacqueline, welcome back to the show. 0:01:51.640 --> 0:01:52.040 Thank you. 0:01:52.240 --> 0:01:53.960 I'm excited that you're here and we get to have 0:01:54.000 --> 0:01:55.320 a yap about finance again. 0:01:55.400 --> 0:01:57.240 I know we do it every single day, yeah, but 0:01:57.520 --> 0:01:57.880 it's not. 0:01:57.960 --> 0:01:59.960 But we get to have it like on a company 0:02:00.080 --> 0:02:02.520 couch instead of spinneach chairs, and that's like a little 0:02:02.520 --> 0:02:05.240 bit different. Today Jack, we are going to be walking 0:02:05.280 --> 0:02:08.400 through what refinancing actually looks like, how to know if 0:02:08.440 --> 0:02:11.840 it's worth doing, and everything you need to consider before 0:02:11.880 --> 0:02:15.280 making the switch. Jack, are you excited about this because 0:02:15.280 --> 0:02:19.000 I feel like at the time of recording, the RBA 0:02:19.280 --> 0:02:22.840 actually announced a point two five percent reduction on the 0:02:22.919 --> 0:02:24.640 cash rate yesterday. 0:02:24.760 --> 0:02:27.760 Yes, and so I could not be. 0:02:27.600 --> 0:02:30.440 More perfectly timed in having you on the show because 0:02:30.480 --> 0:02:32.799 now the cash rate is sitting at three point eight 0:02:32.919 --> 0:02:36.000 five and it is the first time in two years 0:02:36.000 --> 0:02:37.920 that it has sat below four percent, and I just 0:02:37.919 --> 0:02:40.800 think everyone in our office, we're just so excited about that. 0:02:41.760 --> 0:02:43.919 Yeah, that was a big discussion about it. A few 0:02:43.919 --> 0:02:45.640 of us thought maybe point five. 0:02:45.880 --> 0:02:48.160 Yeah, I feel like they're too conservative for that. Like 0:02:48.200 --> 0:02:50.480 the whole time, I was like, Nahn nutshul, thank. 0:02:50.280 --> 0:02:51.240 You, gotta put it out there. 0:02:51.520 --> 0:02:54.320 I reckon we'll get another point twenty five maybe next 0:02:54.320 --> 0:02:57.480 time the RBA meet or the time after that, because 0:02:57.520 --> 0:03:00.280 I know that we're technically all of the economy, so 0:03:00.360 --> 0:03:02.520 saying that by the end of the year, we are 0:03:02.680 --> 0:03:05.760 very likely to head towards the three percent mark, which 0:03:05.800 --> 0:03:07.280 would be oh, very nice. 0:03:07.360 --> 0:03:10.280 Look it's on its way down that We're thankful. 0:03:10.440 --> 0:03:11.239 Very very nice. 0:03:11.280 --> 0:03:14.079 But let's start the chat. For those who might not know, Jack, 0:03:14.160 --> 0:03:15.440 what is refinancing? 0:03:15.520 --> 0:03:19.960 Okay, So it's essentially replacing your old home loan with 0:03:20.040 --> 0:03:23.880 a new home loan. So that could be at the 0:03:23.919 --> 0:03:25.880 same bank that you're with, or you can look at 0:03:25.919 --> 0:03:26.919 going to another lender. 0:03:27.560 --> 0:03:30.280 There's like a whole different variety as to why you 0:03:30.280 --> 0:03:30.800 would do this. 0:03:30.960 --> 0:03:31.680 Yeah, but it's not. 0:03:31.800 --> 0:03:33.240 I think a lot of people are like, oh, I 0:03:33.320 --> 0:03:35.960 refinanced my loan recently, but they just called up their 0:03:35.960 --> 0:03:37.080 bank and got a better rate. 0:03:37.480 --> 0:03:38.200 That's different. 0:03:38.280 --> 0:03:41.560 Refinancing is actually picking up the finance offer you have 0:03:41.680 --> 0:03:44.800 and getting a completely new one. Yes, a bit of paperwork, 0:03:44.880 --> 0:03:47.480 a bit of organizing, having a chat with a good broker, 0:03:47.760 --> 0:03:50.120 but it's not so much about asking for a better rate, 0:03:50.160 --> 0:03:52.920 which we actually recommend you do definitely, And if you've 0:03:52.920 --> 0:03:54.920 got a good broker, like if you're a XYLA money client, 0:03:54.960 --> 0:03:57.040 you know this already. We are already going to be 0:03:57.080 --> 0:04:00.720 getting you guys better rates because it's part of our right. 0:04:00.600 --> 0:04:01.320 Like part of the service. 0:04:01.560 --> 0:04:04.320 Literally, when the cash rates go down, we are and 0:04:04.440 --> 0:04:06.840 we've got a pinned where you slack at work, We've 0:04:06.880 --> 0:04:09.080 got a pinned thread at the moment of all of 0:04:09.080 --> 0:04:11.280 the dates when all of the banks are actually going 0:04:11.320 --> 0:04:13.839 to be honoring that drop and letting us know, you know, 0:04:13.920 --> 0:04:16.560 how much they're decreasing their interest rates by, so that 0:04:16.600 --> 0:04:18.919 we can literally get on the phone and be like, hey. 0:04:18.800 --> 0:04:21.920 So you know all of our clients that's being passed 0:04:21.960 --> 0:04:23.760 on right like lock it in, Eddie. 0:04:23.800 --> 0:04:24.680 And then when they come to us. 0:04:24.680 --> 0:04:26.560 We can obviously tell them yep, it's happening this date, 0:04:26.600 --> 0:04:28.400 the bank's going to automatically pass it on or if 0:04:28.440 --> 0:04:29.440 you need to do anything else yet. 0:04:29.680 --> 0:04:32.200 But if you don't have a broker, I would definitely 0:04:32.200 --> 0:04:35.680 be considering calling your bank and going, hey, so just 0:04:35.760 --> 0:04:39.680 confirming that's going to be passed on, because sometimes in 0:04:39.720 --> 0:04:42.960 your terms and conditions it might be that yes, it's 0:04:43.000 --> 0:04:45.760 a variable interest rate, but like you've got to call 0:04:45.800 --> 0:04:48.440 them and lock in the lower rate otherwise they continue 0:04:48.440 --> 0:04:49.920 to charge you the higher rate. 0:04:50.000 --> 0:04:52.880 Yeah, it's not guaranteed with every single bank that they 0:04:52.960 --> 0:04:55.320 just cannot pass it on. Therefore your monthly your payment's 0:04:55.320 --> 0:04:57.600 going to be less every single month. So yeah, if 0:04:57.600 --> 0:05:00.479 you are directly with the bank, we definitely recommend jumping 0:05:00.520 --> 0:05:01.520 on the phone and giving them a call. 0:05:01.640 --> 0:05:04.000 Yeah, And it's a good idea to do that. And 0:05:04.000 --> 0:05:06.760 then if you haven't had any traction, maybe then's the 0:05:06.800 --> 0:05:09.120 time to have a chat to a broker to go Okay, 0:05:09.120 --> 0:05:12.560 well that didn't work, now what now what? Because we 0:05:12.720 --> 0:05:16.440 have done whole episodes on this show about like loyalty tax. 0:05:16.600 --> 0:05:17.720 Yeah, being loyal it. 0:05:17.640 --> 0:05:19.960 Doesn't pay, it's completely gone out the window. 0:05:20.080 --> 0:05:21.760 Yeah, being loyal it doesn't pay. 0:05:22.120 --> 0:05:24.720 So what do you think about the I guess comfort 0:05:24.760 --> 0:05:27.120 trap of sticking with your current lender. I think a 0:05:27.160 --> 0:05:29.880 lot of people are like, oh, I don't want to move. 0:05:30.080 --> 0:05:32.680 I really like NAB or Macquarie or A and Z 0:05:32.920 --> 0:05:35.120 or whatever, like I've been with them for twenty years, 0:05:35.160 --> 0:05:37.159 and like I banked with them and now I have 0:05:37.240 --> 0:05:41.120 my loan with them. Why are people so comfortable staying. 0:05:41.360 --> 0:05:44.080 I don't even know if it's that they necessarily like 0:05:44.120 --> 0:05:46.919 their bank like that they're you know, really want to 0:05:46.920 --> 0:05:49.440 stay with them. I think that the idea of moving 0:05:49.760 --> 0:05:51.560 is maybe just a little bit more daunting than it 0:05:51.600 --> 0:05:54.839 should be. Yeah, totally, I do understand, like why people 0:05:54.880 --> 0:05:58.240 get stuck or stay. I mean, everyone's so busy these 0:05:58.320 --> 0:06:00.599 days that just having another task to do, and you know, 0:06:01.160 --> 0:06:03.120 I think gone are the days where you used to 0:06:03.160 --> 0:06:04.760 have to sit on the front of hours and beg 0:06:04.839 --> 0:06:07.560 to put their rates down. Now, if you're directly with 0:06:07.720 --> 0:06:09.440 a bank most of the time that you can just 0:06:09.520 --> 0:06:12.200 jump on your app and I guess request a discount 0:06:12.240 --> 0:06:14.000 that way or send through an email. But if you 0:06:14.040 --> 0:06:16.240 have a broker, just shoot them off an email and 0:06:16.240 --> 0:06:17.719 just see where you're sitting and they can just have 0:06:17.760 --> 0:06:19.800 a look at comparing all the offers out there for you. 0:06:19.920 --> 0:06:24.159 Yeah, one hundred percent. And I guess how often should 0:06:24.240 --> 0:06:26.040 we be reviewing our mortgages? 0:06:26.080 --> 0:06:27.000 What does that look like? 0:06:27.240 --> 0:06:30.920 I would say every six months, and I say six monthly, 0:06:31.080 --> 0:06:33.400 just because both banks will only allow you to sort 0:06:33.400 --> 0:06:36.560 of do a pricing review once every six months. If 0:06:36.600 --> 0:06:38.560 you try and you know, do two or three in 0:06:38.560 --> 0:06:39.560 that period and they. 0:06:39.440 --> 0:06:42.880 Just don't allow it and they say sorry, three months ago. 0:06:42.839 --> 0:06:43.200 You're done. 0:06:43.360 --> 0:06:47.280 Yeah, so six monthly definitely, But there's obviously other reasons 0:06:47.279 --> 0:06:49.640 as to why you would look into that as well, 0:06:49.720 --> 0:06:50.839 So not just that. 0:06:50.880 --> 0:06:53.000 Obviously the rbas reduce their rates. 0:06:53.200 --> 0:06:54.919 Want to make sure that we're getting the best interest 0:06:55.000 --> 0:06:58.440 rate possible if there's been any changes to your circumstances, 0:06:58.440 --> 0:07:00.920 So you know, if your house has gone up, or 0:07:00.960 --> 0:07:02.520 you know, the naghbor down the road has just sold 0:07:02.520 --> 0:07:04.680 their property and they've got a great outcome, and you 0:07:04.680 --> 0:07:07.239 want to see what you're true and correct. Like LVR 0:07:07.320 --> 0:07:09.920 so loan to value ratio looks like that can have 0:07:09.960 --> 0:07:12.200 an impact on your rate as well, So it's definitely 0:07:12.280 --> 0:07:12.840 worth checking. 0:07:12.880 --> 0:07:15.160 Yeah, one hundred percent, And I think that you know 0:07:15.920 --> 0:07:18.440 you gave the advice call up your broker, but like 0:07:18.560 --> 0:07:20.920 it's quite They don't want to say it's funny, but 0:07:21.000 --> 0:07:25.840 it's interesting because some brokers do require that prompting of oh, 0:07:25.880 --> 0:07:28.320 hey can you review my loan and they go, oh, hey, Jacqueline, 0:07:28.360 --> 0:07:29.480 haven't spoken to you in a while. 0:07:29.520 --> 0:07:31.120 Yeah, yeah, yeah, I'll pick it up and have a 0:07:31.120 --> 0:07:31.560 look at it. 0:07:32.000 --> 0:07:34.320 Whereas like we and this is not mean like trying 0:07:34.320 --> 0:07:38.040 to stroke around egos, but like good brokerage practices will 0:07:38.120 --> 0:07:40.920 have a pricing team like we do, and their job 0:07:41.000 --> 0:07:43.880 is actually every single day going through the thousands of 0:07:43.920 --> 0:07:48.239 clients we have and repricing their mortgage. So, like our clients, 0:07:48.240 --> 0:07:50.600 once you kind of get in, you get on the cycle, 0:07:50.800 --> 0:07:53.520 and every six months we can basically guarantee that your 0:07:53.560 --> 0:07:57.200 mortgage has been reviewed, and it gets reviewed. We've already 0:07:57.240 --> 0:07:59.640 called the bank, we've negotiated the lower rate, and you'll 0:07:59.640 --> 0:08:02.360 just get email of probably a call from Jack being like, hey, 0:08:02.480 --> 0:08:04.960 just wanted to touch base. How are you We actually 0:08:05.080 --> 0:08:08.200 dropped your rate this week? Bye, I have a nice day. 0:08:08.360 --> 0:08:11.000 There's actually no admin from your behalf, which I think 0:08:11.080 --> 0:08:13.640 is if you're going to use a broker and like Honestly, 0:08:14.000 --> 0:08:17.080 if we're going to make money from you and your loan, 0:08:17.800 --> 0:08:20.080 I think we should be working for that. I don't 0:08:20.080 --> 0:08:22.200 think that we should just be taking it and being like, oh, 0:08:22.280 --> 0:08:24.680 let's cruise along. I just there's something about that that 0:08:24.760 --> 0:08:27.640 makes me feel uncomfortable to not put clients consistently in 0:08:27.640 --> 0:08:28.720 the best possible position. 0:08:28.840 --> 0:08:30.680 Well, we exactly right. We're going to do the work 0:08:30.720 --> 0:08:31.040 for you. 0:08:31.080 --> 0:08:33.360 So the second that you do settle, like you said, 0:08:33.400 --> 0:08:36.280 our pricing team will dirize every six months to do 0:08:36.320 --> 0:08:37.720 that work for you. So you don't have to dom 0:08:37.800 --> 0:08:39.520 on the phone, you don't have to send that email. 0:08:39.679 --> 0:08:41.320 It's just sort of set and forget and we'll do 0:08:41.360 --> 0:08:41.680 it for you. 0:08:41.760 --> 0:08:45.800 Yeah, one hundred percent. So when should we be considering refinancing? 0:08:45.840 --> 0:08:49.160 I feel like the biggest push is when people see, oh, 0:08:49.240 --> 0:08:52.360 the cash rates dropped, But there are six million reasons 0:08:52.400 --> 0:08:55.600 why you would refinance. Talk me through some of your 0:08:55.600 --> 0:08:57.760 recent refinances. Why are they refinancing? 0:08:57.840 --> 0:08:58.080 Jack? 0:08:58.280 --> 0:08:58.720 Oh? 0:08:58.760 --> 0:09:00.760 Like you said, there is so many reasons as to 0:09:00.800 --> 0:09:04.040 why you would. It could be as simple as changing 0:09:04.040 --> 0:09:06.000 your loan products. So if you're going from a fix 0:09:06.240 --> 0:09:09.000 to a variable or vice versa, if you're needing to 0:09:09.160 --> 0:09:12.800 access any equity, so you might be looking at consolidating 0:09:12.800 --> 0:09:16.120 any loans or just cashing out some money for renovations 0:09:16.200 --> 0:09:18.960 or whatever that looks like. Same with like I said, 0:09:18.960 --> 0:09:21.040 if the house price has gone up, or if you've 0:09:21.040 --> 0:09:24.400 made a lump some payment to your home loan and 0:09:24.440 --> 0:09:27.360 it's changing that LVR. A lot of the banks now 0:09:27.360 --> 0:09:29.800 are doing tiered interest rates, So if you're sitting between 0:09:29.800 --> 0:09:31.959 that seventy to eighty percent mark, you might get one 0:09:32.040 --> 0:09:34.600 rate you're sitting between sixty to seventy. So it's always 0:09:34.640 --> 0:09:37.000 worth staying on top of. But there is so many 0:09:37.040 --> 0:09:38.800 different reasons. It could even be just that you want 0:09:38.840 --> 0:09:41.400 to change the loan term. So what I mean by 0:09:41.400 --> 0:09:44.000 that is you might have a twenty loan term on 0:09:44.040 --> 0:09:46.360 your current home loan, you're looking up forraing a little 0:09:46.360 --> 0:09:48.240 bit more of cash flow. You might want to look 0:09:48.280 --> 0:09:50.360 at extending that just while the interest rates are a 0:09:50.360 --> 0:09:52.960 little bit higher, and then looking at bringing that back down, 0:09:53.160 --> 0:09:54.839 you know, after they sort of drop a bit more. 0:09:54.920 --> 0:09:55.880 Yeah, one hundred percent. 0:09:55.920 --> 0:09:59.600 And like financial advice, I think gets confused a lot 0:09:59.600 --> 0:10:01.920 of the time with mortgage brokers. I have this conversation 0:10:02.000 --> 0:10:04.800 in my DMS on i'd say a weekly basis. People 0:10:04.800 --> 0:10:06.199 will be like, oh my gosh, do I need to 0:10:06.200 --> 0:10:08.480 see a financial advisor because I want to talk about 0:10:08.600 --> 0:10:11.000 whether I should sell my property or rent it out. 0:10:11.440 --> 0:10:15.200 And to me, that's not a financial advice question, because yes, 0:10:15.240 --> 0:10:18.079 a financial advisor could sit you down and be like, okay, cool, Jacqueline, 0:10:18.080 --> 0:10:19.880 You'd be in the best possible position. 0:10:19.559 --> 0:10:20.680 If you xyzed. 0:10:21.080 --> 0:10:23.080 But like a broker is going to be able to 0:10:23.160 --> 0:10:26.360 model all of those scenarios for you and go, okay, Jack, 0:10:26.880 --> 0:10:29.199 if you sold, it would look like this, and this 0:10:29.280 --> 0:10:31.920 is what we would expect that property to sell for. 0:10:32.080 --> 0:10:34.000 And also, this is how much equity you've got. This 0:10:34.040 --> 0:10:36.320 is how much cash would probably come into your bank account, 0:10:36.440 --> 0:10:37.680 and you'd be able to play with that. 0:10:37.800 --> 0:10:39.360 Okay, if we rented. 0:10:39.040 --> 0:10:40.800 It out, this is what we could do with it, 0:10:40.840 --> 0:10:42.720 Like this is how much equity you've got to leverage 0:10:42.760 --> 0:10:45.960 into another property, and like we're part of that decision 0:10:46.000 --> 0:10:49.760 making team, Like, no, technically we can't tell you what to. 0:10:49.679 --> 0:10:52.480 Do, but we're just laying all the scenarios out and 0:10:52.520 --> 0:10:54.280 be like, oh, would you look at that. 0:10:54.280 --> 0:10:57.800 That one looks like it comes comes out ahead, doesn't it. 0:10:57.800 --> 0:10:59.760 And the client's often like oh my god, I would 0:10:59.800 --> 0:11:02.120 never want to xyz if I could do this. And 0:11:02.160 --> 0:11:04.800 so I think it's we're not leading you down the 0:11:04.800 --> 0:11:08.680 garden path, but we're giving you every single stepping stove everything. 0:11:08.800 --> 0:11:11.160 Pave your own path and work out what's going on. 0:11:11.240 --> 0:11:13.240 And I mean you could go, oh, well, Jack, what 0:11:13.280 --> 0:11:15.839 if I bought for six fifty? Oh, actually, what if 0:11:15.840 --> 0:11:17.920 it was seven hundred. We can like model out all 0:11:17.960 --> 0:11:21.439 of those different options. And I think that when you're refinancing, 0:11:21.800 --> 0:11:24.680 going well, what's that even look like? Like you've called 0:11:24.720 --> 0:11:26.560 your bank, you've got the lowest interest rate, but you 0:11:26.600 --> 0:11:28.720 know it's not the lowest interest rate on the market. 0:11:28.800 --> 0:11:31.120 Maybe you're going, well, what does it look like we've 0:11:31.160 --> 0:11:33.640 owned this house for five years. Let's have a look 0:11:33.640 --> 0:11:35.400 at what equity you've got. Because I think a lot 0:11:35.440 --> 0:11:39.080 of the time people are surprised, if there've been homeowners 0:11:39.120 --> 0:11:42.800 for a little while, at how possible and how easy 0:11:42.840 --> 0:11:45.360 it might be to get into their next property, whether 0:11:45.440 --> 0:11:47.679 that is you know, a bigger family home or an 0:11:47.760 --> 0:11:50.839 investment property or whatever that looks like. Often we sit 0:11:50.880 --> 0:11:53.480 down and go, did you realize you probably have like 0:11:53.480 --> 0:11:55.680 one hundred and fifty thousand dollars of equity and they're like, 0:11:55.920 --> 0:11:57.640 but I don't have that in my offset account. 0:11:57.760 --> 0:11:58.360 No, you don't. 0:11:58.360 --> 0:12:00.960 But the house is worth more than the mortgage that 0:12:01.000 --> 0:12:04.160 you owe, and so we could actually use some of 0:12:04.200 --> 0:12:08.000 that equity to buy an investment property and you don't 0:12:08.000 --> 0:12:10.200 have to come up with any cash. So that's a 0:12:10.360 --> 0:12:13.440 very popular reason we see in our community. I would 0:12:13.440 --> 0:12:16.080 say as to why people are trying to like refinance, 0:12:16.120 --> 0:12:18.800 because obviously that requires a different loan structure. 0:12:18.920 --> 0:12:21.600 Exactly, a lot of time people will put as much 0:12:21.640 --> 0:12:24.480 money into the home loan to reduce that loan. So 0:12:24.480 --> 0:12:27.319 instead of I guess having your savings sitting on the side, 0:12:27.360 --> 0:12:29.120 you've got it in your home loan working for you. 0:12:29.160 --> 0:12:30.679 So when the time comes that you want to look 0:12:30.679 --> 0:12:33.600 at purchasing that next property, we are able to access 0:12:33.600 --> 0:12:35.600 the equity and the extra funds that you've put into 0:12:35.600 --> 0:12:37.600 that home loan and draw it back out for your 0:12:37.600 --> 0:12:38.720 deposit for the next property. 0:12:38.800 --> 0:12:39.520 Yeah, exactly. 0:12:39.600 --> 0:12:42.240 And I think that a lot of people assume, oh, no, 0:12:42.360 --> 0:12:44.840 that must be financial adviceor broker couldn't tell me if 0:12:44.840 --> 0:12:46.800 I could, we can model it out. We can sit 0:12:46.840 --> 0:12:49.080 you down and go, okay, cool, this is what that 0:12:49.120 --> 0:12:50.880 would look like. This is what it would look like 0:12:50.920 --> 0:12:52.800 if you did it over here over there. And I 0:12:52.800 --> 0:12:56.200 think that that's the cool thing about it. It's free 0:12:56.280 --> 0:12:58.720 as opposed to going and seeing a financial advisor who 0:12:58.760 --> 0:13:00.880 would go, oh, so you you want to buy an 0:13:00.920 --> 0:13:03.200 investment property and they will do your whole financial plan. 0:13:03.360 --> 0:13:03.920 That's cool. 0:13:04.160 --> 0:13:06.760 But like the question that you wanted answered was can 0:13:06.800 --> 0:13:08.920 I afford it exactly? And I can work that out 0:13:08.960 --> 0:13:11.920 for you with one of my brokers very quickly and 0:13:11.960 --> 0:13:13.120 it won't cost you anything. 0:13:13.640 --> 0:13:15.480 So what are some. 0:13:15.600 --> 0:13:18.839 Signs that And I think this is a really important one, 0:13:18.840 --> 0:13:20.960 and people don't realize that, what are some signs that 0:13:20.960 --> 0:13:23.800 your mortgage maybe isn't working for you anymore? Like you 0:13:23.840 --> 0:13:26.160 set it up, you thought you did absolutely everything. You 0:13:26.200 --> 0:13:28.040 dotted all your eyes, you crossed all your t's, and 0:13:28.120 --> 0:13:30.520 now maybe it's not working for you anymore. 0:13:30.600 --> 0:13:34.120 Well, I think, I mean, offsets aren't new, but they're 0:13:34.160 --> 0:13:38.319 still quite relatively new. I guess in the lending world, 0:13:38.600 --> 0:13:40.439 if you don't have an offset, or you haven't entertain 0:13:40.520 --> 0:13:42.800 what that looks like, that might be something that you 0:13:42.920 --> 0:13:46.720 need to consider, especially having your salary paid into an account, 0:13:46.880 --> 0:13:48.600 or whether it's with the same bank or not with 0:13:48.640 --> 0:13:50.840 the same bank, just having a look at the different 0:13:50.840 --> 0:13:53.320 features that might be more beneficial to you. 0:13:53.440 --> 0:13:54.120 I guess yeah. 0:13:54.200 --> 0:13:56.720 I think a lot of people also, like if you're 0:13:56.760 --> 0:13:59.040 in a bit of a pinch and you're like, oh, 0:13:59.080 --> 0:14:02.640 I'm really feeling these mortgage repayments every single month, like 0:14:02.960 --> 0:14:05.240 you don't have to kind of suffer in silence. You 0:14:05.280 --> 0:14:07.160 can talk to a mortgage broker and go, okay, cool, 0:14:07.200 --> 0:14:10.680 well what could we do. How could we refinance this 0:14:10.800 --> 0:14:14.040 so that we're more financially comfortable today, but we still 0:14:14.040 --> 0:14:16.280 have a plan to pay it off before retirement exactly. 0:14:16.360 --> 0:14:18.640 And I think that that's an important factor as well, 0:14:18.679 --> 0:14:23.200 because sometimes you might be worried about refinancing because you're like, 0:14:23.200 --> 0:14:26.000 I don't want to start a brand new thirty year term, 0:14:26.080 --> 0:14:28.120 Like I don't need a new loan to restart. 0:14:28.160 --> 0:14:29.800 I just I don't think that's a good idea. 0:14:29.880 --> 0:14:31.880 But that's probably the top one that comes through, is 0:14:31.920 --> 0:14:35.400 that the refinancing. They assume that if you refinance, you 0:14:35.440 --> 0:14:37.480 have to push it back out to thirty years, So 0:14:37.560 --> 0:14:40.400 what do you do so in terms of when you're 0:14:40.400 --> 0:14:42.480 looking at refinancing, we don't have to stretch it back 0:14:42.480 --> 0:14:45.400 out of thirty years, But in some cases you might 0:14:45.440 --> 0:14:47.920 look to do that just purely because trying to free 0:14:47.920 --> 0:14:49.760 have a bit of cash flow at the moment. A 0:14:49.760 --> 0:14:52.400 lot of the time clients will keep it at thirty 0:14:52.480 --> 0:14:54.520 years so that they're contracted to thirty years and it's 0:14:54.520 --> 0:14:57.440 the bare minimum payments. But then when they settle, they'll 0:14:57.520 --> 0:14:59.840 jump online they can change it back down to, say 0:14:59.840 --> 0:15:01.480 to twenty years. So I can tell you exactly what 0:15:01.520 --> 0:15:03.320 that needs to look like and what you need to 0:15:03.400 --> 0:15:05.440 change it to too, paid off in twenty years time. 0:15:05.720 --> 0:15:07.880 But the beauty of it is, if you're contract to 0:15:07.920 --> 0:15:10.120 the bare minimum, at least you know that if something 0:15:10.160 --> 0:15:12.360 happens with work or you want to go on yeah travel, 0:15:12.360 --> 0:15:14.240 sit back, you can just drop it down for that 0:15:14.320 --> 0:15:16.680 month or however long you want, back to the bare minimum, 0:15:16.680 --> 0:15:18.880 and it's in control with you, like you don't have 0:15:18.920 --> 0:15:19.640 to contact. 0:15:19.320 --> 0:15:21.000 You're not going to get in trouble with that, like 0:15:21.160 --> 0:15:23.120 you are just yeah, killing it yourself. 0:15:23.160 --> 0:15:24.800 Yeah, I love So then you might come back, you know, 0:15:24.840 --> 0:15:27.000 after you've traveled for six months and say, right, you 0:15:27.040 --> 0:15:29.240 know I've got a promotion or I've got you know, 0:15:29.400 --> 0:15:32.040 more savings than I thought, I can make bigger repayments. Now, 0:15:32.280 --> 0:15:34.360 if I wanted to chop off, say another five years, 0:15:34.400 --> 0:15:36.040 what do my repayments need to look like? 0:15:36.120 --> 0:15:36.240 Now? 0:15:36.320 --> 0:15:36.560 Yeah? 0:15:36.640 --> 0:15:38.160 Yeah, And do you know what, Jack, you don't know 0:15:38.160 --> 0:15:41.440 if there's but at the time that this episode is dropping, 0:15:41.520 --> 0:15:44.840 I have a free mortgage repayment calculator dropping on our 0:15:44.880 --> 0:15:47.360 website as well, So we'll put the link to that 0:15:47.480 --> 0:15:49.080 in our show notes as well. 0:15:49.400 --> 0:15:50.240 But I think that that. 0:15:50.160 --> 0:15:53.120 Will be like a really helpful tool because it's a 0:15:53.160 --> 0:15:56.360 really basic spreadsheet that I've built that is, like you 0:15:56.400 --> 0:15:58.480 put your mortgage amount in, you put your interest rate 0:15:58.520 --> 0:16:01.520 amount in, and then you can play around with the 0:16:01.800 --> 0:16:04.680 repayments and see the time frame that it would take 0:16:04.720 --> 0:16:06.520 to pay that off. Because there's obviously a lot of 0:16:06.640 --> 0:16:09.000 maths that goes into the back of that that's not 0:16:09.120 --> 0:16:11.760 just like one plus one equals too, like your interest 0:16:11.840 --> 0:16:14.840 rate is kind of like it's compounds, like compound interest 0:16:14.880 --> 0:16:17.120 on an investment would, So there's a lot of like 0:16:17.440 --> 0:16:19.480 you end up paying a lot more of the mortgage 0:16:19.520 --> 0:16:21.760 off in the later periods of your life and a 0:16:21.800 --> 0:16:24.560 lot more interest at the start. So anyway, I will 0:16:24.560 --> 0:16:26.440 have that in the show notes for you to download 0:16:26.480 --> 0:16:28.280 for free, so that you can kind of play around 0:16:28.320 --> 0:16:30.440 with that or just even see, well, what would it 0:16:30.480 --> 0:16:32.880 look like if I could refinance and drop my rate 0:16:32.920 --> 0:16:35.280 by you know, zero point two five percent? Like does 0:16:35.320 --> 0:16:37.360 that actually put me in a better position? How much 0:16:37.360 --> 0:16:41.200 of a good position? Because it's very handy to know 0:16:41.360 --> 0:16:43.240 and feel like you're in control. 0:16:42.840 --> 0:16:44.480