1 00:00:00,200 --> 00:00:02,679 Speaker 1: Jonesy and Amanda jam Nation. 2 00:00:03,200 --> 00:00:06,120 Speaker 2: Yesterday, the Reserve Bank raised the official cash rate twenty 3 00:00:06,160 --> 00:00:09,120 Speaker 2: five points to three point three five percent, the highest 4 00:00:09,119 --> 00:00:11,520 Speaker 2: in over a decade. This news will surely come as 5 00:00:11,520 --> 00:00:14,920 Speaker 2: a blow to mortgage holders now battling nine consecutive increases. 6 00:00:15,280 --> 00:00:17,919 Speaker 2: People have every right to be nervous. But we'll try 7 00:00:17,920 --> 00:00:19,959 Speaker 2: and calm you down and see what we can do 8 00:00:20,120 --> 00:00:22,920 Speaker 2: to help you through this. We've enlisted our money guru, 9 00:00:23,320 --> 00:00:25,520 Speaker 2: Fi Zahas, who's on the line to break it down 10 00:00:25,560 --> 00:00:25,759 Speaker 2: for us. 11 00:00:25,800 --> 00:00:29,520 Speaker 1: Hello Fie, Good morning, Amanda and Jones by Hello Effie. 12 00:00:29,640 --> 00:00:33,000 Speaker 3: What about Philip Lowe? So he's the RBA man. He 13 00:00:33,040 --> 00:00:34,920 Speaker 3: could go from hero to zero here. So if he 14 00:00:35,000 --> 00:00:38,520 Speaker 3: winds inflation down to two to three percent, he will 15 00:00:38,560 --> 00:00:41,120 Speaker 3: be the king of the world. But if he doesn't, 16 00:00:41,400 --> 00:00:43,559 Speaker 3: if he MUCKs it up, he'll be go down as 17 00:00:43,600 --> 00:00:47,280 Speaker 3: the worst RBA boss in thirty years and the low 18 00:00:47,320 --> 00:00:48,440 Speaker 3: inflation rate. 19 00:00:49,800 --> 00:00:52,319 Speaker 1: Look, Jones, the track record here isn't good, is it? 20 00:00:53,880 --> 00:00:59,120 Speaker 1: I feel like they're really flying blind this next rate hike. 21 00:01:00,120 --> 00:01:04,120 Speaker 1: Clearly it's going to hit so hard. And when we 22 00:01:04,200 --> 00:01:06,720 Speaker 1: hear so many other economists saying that there is a 23 00:01:06,800 --> 00:01:11,240 Speaker 1: lag effect with these rates, we have not yet seen them. Pause. Wait, day, 24 00:01:12,400 --> 00:01:14,880 Speaker 1: I'm really worried as to where there are going with 25 00:01:14,920 --> 00:01:17,759 Speaker 1: this because there was also the assumption that holder, I'm 26 00:01:17,760 --> 00:01:21,240 Speaker 1: going to increase at once but also more now, very 27 00:01:21,280 --> 00:01:23,920 Speaker 1: different story to what we said, you know, a couple 28 00:01:23,959 --> 00:01:26,840 Speaker 1: of years ago, with rates not moving under certain scenarios 29 00:01:26,880 --> 00:01:31,000 Speaker 1: till twenty twenty four. So you've got to question do 30 00:01:31,200 --> 00:01:34,840 Speaker 1: they know what they're doing? And it's simply no kind 31 00:01:34,840 --> 00:01:38,479 Speaker 1: of blueprint as to well when will rates turn around? 32 00:01:38,800 --> 00:01:41,440 Speaker 1: How far does the economy have to fall so to speak, 33 00:01:41,760 --> 00:01:45,319 Speaker 1: you know, until they start saying, well, okay, let's dial 34 00:01:45,360 --> 00:01:48,040 Speaker 1: it down there and reduce rates. Because I hate to 35 00:01:48,040 --> 00:01:51,400 Speaker 1: say that this interest rate now means this rate Lise 36 00:01:51,440 --> 00:01:54,560 Speaker 1: means for a half a million dollar mortgage, we're paying 37 00:01:55,160 --> 00:01:58,680 Speaker 1: almost an extra twelve thousand dollars a year in additional repayment. 38 00:01:58,920 --> 00:02:01,680 Speaker 2: Wow. I saw a story yesterday with a family who 39 00:02:01,720 --> 00:02:04,760 Speaker 2: are paying one thousand dollar repayments a few years ago. 40 00:02:04,800 --> 00:02:08,320 Speaker 2: Now they're paying two thousand. These are substantial jumps for families. 41 00:02:08,639 --> 00:02:09,920 Speaker 2: What would you suggest people do? 42 00:02:11,080 --> 00:02:13,120 Speaker 1: Yeah, and Amanda, that makes sense that the numbers add 43 00:02:13,160 --> 00:02:14,960 Speaker 1: up one thousand dollars more twelve months in a year. 44 00:02:15,000 --> 00:02:16,960 Speaker 1: That's twelve thousand the number I just gave you there, 45 00:02:17,080 --> 00:02:20,400 Speaker 1: So that seems to be the norm. Okay, look, I 46 00:02:20,400 --> 00:02:22,360 Speaker 1: don't want to I've been saying this to people and 47 00:02:22,440 --> 00:02:24,760 Speaker 1: I'm starting to hear that, yes, I've done this or 48 00:02:24,760 --> 00:02:26,800 Speaker 1: I can't do that, And you know, it's easy for 49 00:02:26,840 --> 00:02:28,920 Speaker 1: you to say, but this is not possible, and that 50 00:02:29,040 --> 00:02:31,480 Speaker 1: is the reality. The reality is the tips I'll kind 51 00:02:31,480 --> 00:02:34,399 Speaker 1: of throw out now. We need to do a combination 52 00:02:34,520 --> 00:02:36,440 Speaker 1: of them, because not one is going to work. In 53 00:02:36,480 --> 00:02:39,359 Speaker 1: some cases. I do hate to say this, some may 54 00:02:39,400 --> 00:02:43,080 Speaker 1: not be possible. So I talk about refinancing, and you 55 00:02:43,080 --> 00:02:45,280 Speaker 1: can go from say the average timeline to the cheapest 56 00:02:45,320 --> 00:02:47,560 Speaker 1: in the market, and you'll be able to call six 57 00:02:47,639 --> 00:02:50,760 Speaker 1: thousand dollars back of that twelve thousand I just said. 58 00:02:51,280 --> 00:02:54,840 Speaker 1: But here's the problem, guys, those people that really need 59 00:02:54,880 --> 00:02:57,760 Speaker 1: to refinance, if they've brought a properly two years ago 60 00:02:57,880 --> 00:03:00,239 Speaker 1: or three years ago and they only paid a five 61 00:03:00,280 --> 00:03:03,760 Speaker 1: percent deposit, well we know property prices have fallen. You 62 00:03:03,880 --> 00:03:07,000 Speaker 1: may find that you can't refinance because you don't have 63 00:03:07,240 --> 00:03:10,680 Speaker 1: that security that you need to move to another lender. 64 00:03:11,200 --> 00:03:14,440 Speaker 1: And that's a big problem. I feel the banks really 65 00:03:14,440 --> 00:03:17,200 Speaker 1: do need to come out like they did during COVID, 66 00:03:17,280 --> 00:03:19,800 Speaker 1: and they gave these packages to help people that lost 67 00:03:19,840 --> 00:03:23,000 Speaker 1: their jobs during lockdowns and so on. And they do 68 00:03:23,240 --> 00:03:25,440 Speaker 1: have this. If you put your hand up and go, hey, 69 00:03:25,840 --> 00:03:29,800 Speaker 1: mortgage stress, financial hardship, they must buy law, put you 70 00:03:29,840 --> 00:03:32,240 Speaker 1: on some type of plan. And does that mean you 71 00:03:32,280 --> 00:03:35,680 Speaker 1: pay interest only increase your term because all of that 72 00:03:35,720 --> 00:03:38,520 Speaker 1: can knock your payments by half. But it's a band 73 00:03:38,560 --> 00:03:40,320 Speaker 1: aid solutions. It's going to cost you more in the 74 00:03:40,360 --> 00:03:41,680 Speaker 1: long run if you don't change it later. 75 00:03:41,920 --> 00:03:44,080 Speaker 3: And the banks they've got better at doing this because 76 00:03:44,320 --> 00:03:46,839 Speaker 3: surely we would learn from the past because we don't 77 00:03:46,840 --> 00:03:50,840 Speaker 3: want to go into a depression. And that's and when 78 00:03:50,840 --> 00:03:53,240 Speaker 3: that happened all those years ago, it's because the bank's 79 00:03:53,280 --> 00:03:55,600 Speaker 3: panicked and said, right, whatever you owe me on your house, 80 00:03:55,680 --> 00:03:57,680 Speaker 3: you owe me that they called in the debt. So 81 00:03:57,760 --> 00:04:00,320 Speaker 3: that the banks they've learned anything. They don't want to 82 00:04:00,320 --> 00:04:02,120 Speaker 3: own property. They want you to own the property. They 83 00:04:02,160 --> 00:04:03,920 Speaker 3: want to invest in you, so they don't want to 84 00:04:03,960 --> 00:04:04,840 Speaker 3: take your house away. 85 00:04:05,600 --> 00:04:07,880 Speaker 1: We absolutely we don't want to ge. They don't want 86 00:04:07,880 --> 00:04:09,560 Speaker 1: to get in the business of mortgage e sales. They're 87 00:04:09,560 --> 00:04:12,320 Speaker 1: not real estate agents, and yeah, you're absolutely right J ANDC. 88 00:04:12,440 --> 00:04:15,839 Speaker 1: That they do have these strategies in place. So look, 89 00:04:15,880 --> 00:04:18,320 Speaker 1: a couple of things you can do. If you feel 90 00:04:18,440 --> 00:04:20,960 Speaker 1: you can refine it. You can refinance internally as well. 91 00:04:21,080 --> 00:04:23,200 Speaker 1: Talk to your lender and just say, hey, is this 92 00:04:23,520 --> 00:04:27,479 Speaker 1: the cheapest product you've got. If you can refinance, tick 93 00:04:27,560 --> 00:04:29,320 Speaker 1: that will give you six thousand dollars back if you 94 00:04:29,320 --> 00:04:32,600 Speaker 1: can get to a lower run. If you can't refinance, 95 00:04:32,640 --> 00:04:35,159 Speaker 1: then your options would be talk to your lend about 96 00:04:35,160 --> 00:04:37,920 Speaker 1: going interest only or increasing your turn Maybe you want 97 00:04:37,920 --> 00:04:40,720 Speaker 1: to go from twenty five to thirty years. I know 98 00:04:40,839 --> 00:04:42,920 Speaker 1: you bank has just come out with the loan going 99 00:04:42,960 --> 00:04:46,400 Speaker 1: from thirty years to thirty five. That's a long mortgage. 100 00:04:46,600 --> 00:04:48,680 Speaker 1: Like I said, you will pay more interest in the 101 00:04:48,720 --> 00:04:51,960 Speaker 1: long run. But if what the MBA says is right, 102 00:04:52,000 --> 00:04:54,720 Speaker 1: and this is the biggest can we trust them that 103 00:04:54,800 --> 00:04:58,000 Speaker 1: they hopefully will you get inflation under control and then 104 00:04:58,040 --> 00:05:00,640 Speaker 1: towards the end of the year we'll see rates. Then 105 00:05:00,720 --> 00:05:02,520 Speaker 1: maybe you'll be in a better position at the end 106 00:05:02,520 --> 00:05:04,240 Speaker 1: of the year early next to you to go back 107 00:05:04,279 --> 00:05:08,440 Speaker 1: to your normal payments. There are other things too, maybe 108 00:05:08,520 --> 00:05:12,440 Speaker 1: talk about going to an investment loan and renting out 109 00:05:12,440 --> 00:05:16,400 Speaker 1: your home and going elsewhere. Maybe there are all these 110 00:05:16,400 --> 00:05:19,159 Speaker 1: things that you could possibly do. But you know it's 111 00:05:19,200 --> 00:05:19,719 Speaker 1: not easy. 112 00:05:19,880 --> 00:05:22,360 Speaker 3: No, it's not easy, But there's plenty of options for 113 00:05:22,400 --> 00:05:22,680 Speaker 3: you out. 114 00:05:22,760 --> 00:05:24,200 Speaker 2: Yeah, and what about all the people that are coming 115 00:05:24,240 --> 00:05:26,560 Speaker 2: off fixed home loans and just being barraged with this? 116 00:05:27,720 --> 00:05:30,480 Speaker 1: Yeah? So Aman it depends on when you actually fix 117 00:05:30,600 --> 00:05:32,599 Speaker 1: some offen think to some people and go, oh, look, 118 00:05:32,600 --> 00:05:34,800 Speaker 1: I locked in, I won't refight, I won't come off 119 00:05:34,800 --> 00:05:36,520 Speaker 1: this fix right now to the end of this year, 120 00:05:36,839 --> 00:05:40,120 Speaker 1: and you know what, they may actually pass this whole 121 00:05:40,520 --> 00:05:43,120 Speaker 1: mess and come out the other end very nicely. Now, 122 00:05:43,240 --> 00:05:45,839 Speaker 1: others will find that their rate will move probably from 123 00:05:45,920 --> 00:05:49,040 Speaker 1: two percent up until six So they're going to be 124 00:05:49,120 --> 00:05:53,000 Speaker 1: slapped with these rate risers. What wearable homeowners have had 125 00:05:53,040 --> 00:05:55,880 Speaker 1: over the past year. That's going to be hard to them. 126 00:05:56,320 --> 00:05:57,960 Speaker 1: If that's the case, then you've got to say, a 127 00:05:58,000 --> 00:06:00,520 Speaker 1: couple more months fixed, try and pay as much as 128 00:06:00,560 --> 00:06:02,760 Speaker 1: you plan now, because obviously you're on a low rate. 129 00:06:03,200 --> 00:06:05,920 Speaker 1: Can you afford to do that? If not, again, you're 130 00:06:05,920 --> 00:06:07,960 Speaker 1: going to be in the in line with the rest 131 00:06:08,000 --> 00:06:10,960 Speaker 1: of us and looking at where can I refinance? Who's 132 00:06:10,960 --> 00:06:14,320 Speaker 1: got the cheaper rate? Your household bills are also another 133 00:06:14,440 --> 00:06:17,240 Speaker 1: area to look at because they move all the time. 134 00:06:17,680 --> 00:06:19,720 Speaker 1: And I have looked, and I've said this before, if 135 00:06:19,720 --> 00:06:22,400 Speaker 1: you're on the average bill payment of state, let's see 136 00:06:22,400 --> 00:06:25,640 Speaker 1: your your health insurance, you can't insurance, your home and contents, 137 00:06:25,640 --> 00:06:28,960 Speaker 1: your phone plans, your energy plans. Having to see what 138 00:06:29,120 --> 00:06:31,680 Speaker 1: prices of change there could actually bring in some big 139 00:06:31,720 --> 00:06:35,000 Speaker 1: savings to So it does mean maybe spending this weekend 140 00:06:35,040 --> 00:06:37,480 Speaker 1: and just meaging in the whole kind of the household 141 00:06:37,480 --> 00:06:39,520 Speaker 1: bills and just having a look and see can I 142 00:06:39,560 --> 00:06:40,520 Speaker 1: do better with ease as. 143 00:06:40,440 --> 00:06:42,520 Speaker 3: Well not going out for dinner and eating ten dollar 144 00:06:42,600 --> 00:06:46,480 Speaker 3: jatsas that's the hot tip there not on the download. 145 00:06:47,279 --> 00:06:49,000 Speaker 1: Yeah, this is what we're going to see. More people 146 00:06:49,000 --> 00:06:50,840 Speaker 1: are not going to go out and unfortunately, who's going 147 00:06:50,880 --> 00:06:53,320 Speaker 1: to hurt you now it's more businesses. It's kind of 148 00:06:53,320 --> 00:06:55,000 Speaker 1: a bit of a domino effect. If I don't go 149 00:06:55,080 --> 00:06:57,200 Speaker 1: out and eat or get my coffee, then my local 150 00:06:57,240 --> 00:06:59,720 Speaker 1: business is going to suffer. They have a mortgage too, 151 00:07:00,120 --> 00:07:02,320 Speaker 1: and so they don't have income from their business. They're 152 00:07:02,320 --> 00:07:04,920 Speaker 1: going to hurt as well. And this is where there's 153 00:07:04,920 --> 00:07:07,880 Speaker 1: a fear that you know, has he overshot this is 154 00:07:07,880 --> 00:07:10,880 Speaker 1: this one too many heights now that could see us 155 00:07:11,080 --> 00:07:11,720 Speaker 1: tumble down? 156 00:07:12,040 --> 00:07:14,840 Speaker 3: Yeah, A lonely time will tell. Philip losted and going, 157 00:07:14,880 --> 00:07:16,400 Speaker 3: oh man, I've got so much pressure. 158 00:07:16,560 --> 00:07:18,240 Speaker 2: Oh I think he's not the only one. Brandon. 159 00:07:18,280 --> 00:07:20,200 Speaker 3: We don't want that job for a million years. If 160 00:07:20,200 --> 00:07:22,880 Speaker 3: he thank you, Thank you every good job. To help 161 00:07:22,920 --> 00:07:25,680 Speaker 3: find the right financial situation for you, head to Cansta 162 00:07:26,040 --> 00:07:27,480 Speaker 3: dot com dot au