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Want to Buy Property in 2025? Here’s How to Get Prepared · She's On The Money

0:00
Speaker 1: Hello, my name is Sanatasha Nabananga Bamblet. I'm a proud
0:04
Speaker 1: yor the Order Kerni Whoalbury and a waddery woman. And
0:08
Speaker 1: before we get started on She's on the Money podcast,
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Speaker 1: I would like to acknowledge the traditional custodians of the
0:13
Speaker 1: land of which this podcast is recorded on a wondery country,
0:18
Speaker 1: acknowledging the elders, the ancestors and the next generation coming
0:22
Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing
0:27
Speaker 1: and the storytelling of you to make a difference for
0:30
Speaker 1: today and lasting impact for tomorrow.
0:33
Speaker 2: Let's get into it.
0:34
Speaker 3: She's on the Money. She's on the Money.
0:57
Speaker 4: Hello, and welcome to She's on the Money. That's about
1:00
Speaker 4: making your financial goals a reality. And today we're going
1:04
Speaker 4: to be tackling what's often seen as the holy grail
1:07
Speaker 4: of adulting buying house Now, I really do get it.
1:11
Speaker 4: Buying property in twenty twenty five feels like climbing a
1:13
Speaker 4: mountain that just keeps getting steeper and steeper. Between the
1:17
Speaker 4: cost of living, housing prices, and interest rates, it's so
1:20
Speaker 4: easy to feel like owning home is completely out of reach.
1:24
Speaker 4: It's easy to feel really overwhelmed and completely stuck. And
1:27
Speaker 4: let me tell you. If that's how you're feeling, my friend,
1:30
Speaker 4: you are not alone but his thing. If owning a
1:34
Speaker 4: home is your dream, I want to help you feel
1:36
Speaker 4: empowered to get there, no matter where you are starting from.
1:39
Speaker 4: I'm Victoria Devine, finance expert and owner of mortgage broking
1:43
Speaker 4: firms Zella Money, and in this episode, we're here to
1:46
Speaker 4: guide you through the steps you can take right now
1:49
Speaker 4: to put yourself in the best possible position and get
1:52
Speaker 4: you closer to turning that dream home into a reality.
1:56
Speaker 4: And to make sure that you're getting the very best advice.
1:59
Speaker 4: I've brought in an absolute powerhouse in the world of
2:03
Speaker 4: home loans, someone who's helped thousands of Australians unlock the
2:07
Speaker 4: door to their dream home. Meet my friend and coworker,
2:13
Speaker 4: Jacqueline Walsh. Welcome to the show.
2:15
Speaker 2: Thanks for having me.
2:16
Speaker 4: I'm so excited about this. I feel like the whole
2:18
Speaker 4: team have been like get Jack on the show for
2:20
Speaker 4: like actually years. Jack, to introduce her really quickly, is
2:25
Speaker 4: a mortgage broker with what more than fifteen years experience
2:28
Speaker 4: I would say industry. We actually got her from the
2:32
Speaker 4: dark side. We brought her from one of the big
2:34
Speaker 4: four banks over to work for Zella Money, and I
2:38
Speaker 4: feel like you have an absolute gift of simplifying all
2:41
Speaker 4: of the tricky bits for our clients. And I would
2:44
Speaker 4: say that you have a very proven track record of
2:46
Speaker 4: saving people some serious money, some serious time, and getting
2:50
Speaker 4: them into their dream homes faster. Are you going to
2:52
Speaker 4: agree or disagree with that? It's always awkward when people
2:55
Speaker 4: introduce you, right, I agree, I did. Yeah, I did
3:00
Speaker 4: do that, Victoria, I did. So tell me a little
3:04
Speaker 4: bit about you and your journey before we get into it,
3:07
Speaker 4: like do you like working in finance? Do you like
3:10
Speaker 4: being a mortgage broke? I absolutely love it.
3:12
Speaker 2: I know that sounds so strange, but I cannot see
3:14
Speaker 2: myself doing anything else, Like you said, I've done this
3:16
Speaker 2: for fifteen years now. I think about it every day.
3:19
Speaker 2: What else would I be doing if I wasn't doing this,
3:21
Speaker 2: And I just can't see myself stepping outside of finance.
3:24
Speaker 2: I feel like I know it like the back of
3:26
Speaker 2: my hand. So it's just something that I feel really
3:28
Speaker 2: passionate about.
3:29
Speaker 4: Really, I adore it, and that's probably why we get
3:32
Speaker 4: on so well. And I mean, you're preaching to the
3:34
Speaker 4: converted right here. Like, oh, yeah, I'm not that interested
3:37
Speaker 4: in finance. It's just not for me. Like it is.
3:40
Speaker 4: I live it, I breathe it, I love it, and
3:42
Speaker 4: I feel like one of jointly our favorite things about
3:45
Speaker 4: working at Zelimoney is getting people into their first homes. Like,
3:48
Speaker 4: don't get me wrong, it's so fun to like meet
3:50
Speaker 4: clients and do a refinance or like meet clients and
3:53
Speaker 4: they're buying like a multimillion dollar property, Like it's always fun,
3:56
Speaker 4: you know, looking up the house prices on real estate
3:58
Speaker 4: dot Com and being a little bit perfect right, Like
4:00
Speaker 4: not gonna lie, but there is something so insanely special
4:04
Speaker 4: about holding the hand of a first home buyer who
4:07
Speaker 4: you know, maybe wasn't sure or wasn't even in a
4:10
Speaker 4: position twelve months before to even get into their first home. Yeah,
4:14
Speaker 4: and I just know that you're as passionate about that
4:17
Speaker 4: as I am. Now, if you're listening and you're just
4:19
Speaker 4: starting to save, or you already have a deposit but
4:22
Speaker 4: you feel really unsure of what is going to come next,
4:25
Speaker 4: or if you're just feeling like you're entertaining the idea
4:27
Speaker 4: that property might be for you, and previously you're like, oh,
4:30
Speaker 4: I don't think it is. I'm telling you right now,
4:33
Speaker 4: you are absolutely in the right place, and I have
4:35
Speaker 4: dragged in the big guns to help us here. This
4:38
Speaker 4: episode is going to be jam packed full of practical
4:41
Speaker 4: tips and advice to guide you through one of I
4:43
Speaker 4: would say, your biggest financial decisions. Like, I don't know
4:47
Speaker 4: you and I were talking about this the other day.
4:49
Speaker 4: Your first home is the hardest to get into because
4:52
Speaker 4: you're like starting from scratch. You have no equity, you
4:55
Speaker 4: have no ability to leverage anything and knowledge. Literally I
5:00
Speaker 4: won't have any Like if you've never done it before,
5:02
Speaker 4: how do you know what?
5:02
Speaker 2: You don't know exactly?
5:04
Speaker 4: So stick around because even in a tough market, there
5:07
Speaker 4: are a heap of steps that you can take to
5:09
Speaker 4: feel more in control and then move closer to getting
5:12
Speaker 4: into your dream home. And I think that we can
5:14
Speaker 4: definitely do it together. Jack, let's dive straight in. I've
5:17
Speaker 4: got to start with the question that I think is
5:19
Speaker 4: on everybody's mind. Yeah, I've been trying to predict this.
5:23
Speaker 4: When's the best time to see a mortgage broker?
5:25
Speaker 2: Definitely the most asked question for sure.
5:26
Speaker 4: Yeah, I mean I wish I could be like, oh
5:28
Speaker 4: I thought of this myself, but the reality is I
5:30
Speaker 4: just like, yeah, gave everybody.
5:32
Speaker 2: I'm sure it's got to be from the moment that
5:35
Speaker 2: you even think about your home buying journey, you know,
5:38
Speaker 2: even if it's going to be two years away, whether
5:41
Speaker 2: you just want to find out what the current interest
5:43
Speaker 2: rates are and if that's competitive in your mortgage. I
5:46
Speaker 2: really think that you need to be speaking to a
5:47
Speaker 2: mortgage broker up front, just because they're going to be
5:49
Speaker 2: able to guide you in terms of like all areas
5:52
Speaker 2: of the home buying process. You know, you might think
5:54
Speaker 2: that you're five years off from buying, but once you
5:57
Speaker 2: speak to a mortgage broker, you can find out that
5:59
Speaker 2: you actually can purchase maybe a house tomorrow if you
6:02
Speaker 2: wanted to.
6:02
Speaker 4: I feel like one of the biggest obstacles when I
6:04
Speaker 4: talk to our community about, oh, I really want to
6:07
Speaker 4: talk to a mortgage record, but I have no savings.
6:09
Speaker 4: Am I wasting their time? If I don't want to
6:12
Speaker 4: buy yet. Maybe let's say I want to buy in
6:13
Speaker 4: three or five years. Do you feel like I'm wasting
6:15
Speaker 4: your time? If I to an appointment, I.
6:17
Speaker 2: Think you still need to be making that appointment. There's
6:20
Speaker 2: just other factors that come into it as well. You know,
6:23
Speaker 2: you might be eligible for a scheme right now. You
6:26
Speaker 2: know that could be for the next financial year. You
6:28
Speaker 2: might tell me that you're expecting you a pay increase
6:31
Speaker 2: over the next twelve month. That's going to ring alarm
6:33
Speaker 2: ballance in my head that maybe that's going to push
6:35
Speaker 2: you over the threshold for that scheme. So that might
6:37
Speaker 2: be something that I guide you and say, Look, you're
6:39
Speaker 2: eligible for the scheme up until June thirty of this
6:42
Speaker 2: financial year. However that yeah, am banking on it, Yeah,
6:46
Speaker 2: might push you over that threshold. Therefore you might not
6:48
Speaker 2: be eligible. And it's a whole nother scenario. So you
6:50
Speaker 2: really need to the second you start thinking about that
6:53
Speaker 2: homebuying journey on what that looks like getting touched and
6:55
Speaker 2: we can just have a chat and then put it
6:57
Speaker 2: all in the process like at next steps, next touch
7:01
Speaker 2: points and what that looks like.
7:03
Speaker 4: Yeah, Because I feel like there is this idea in
7:06
Speaker 4: the industry that mortgage brokers are scary, or that mortgage
7:10
Speaker 4: brokers are overwhelming, or that I probably I don't and
7:14
Speaker 4: I mean maybe you are a little bit like I've
7:17
Speaker 4: seen you on the phone when you're like backing a
7:19
Speaker 4: client and you're going into bat for them, and you're
7:22
Speaker 4: yapping at the bank, and I'm like, I would not
7:23
Speaker 4: want to be on the other end of that phone,
7:25
Speaker 4: But you know who I would want on that phone
7:27
Speaker 4: the person that is my mortgage broker. But I feel
7:30
Speaker 4: like there's this misconception that like, oh, you've got to
7:33
Speaker 4: like save up all your deposit and then talk to
7:35
Speaker 4: a broker, and in reality, you could be doing yourself
7:38
Speaker 4: a disservice, definitely, And I wanted to get that upfront
7:41
Speaker 4: because I think a lot of people don't want to
7:43
Speaker 4: waste people's time, Like our community are so kind and
7:46
Speaker 4: so generous and so thoughtful, and we're all the type
7:49
Speaker 4: of people that are like I wouldn't want to bother
7:51
Speaker 4: Jack with that. And in reality, we spend so much
7:54
Speaker 4: time in meetings with clients who, if I'm being honest,
7:58
Speaker 4: don't convert right now, because we know that they're going
8:01
Speaker 4: to be clients for life, and it's about building that relationship.
8:04
Speaker 2: You don't know what you don't know, So when people
8:08
Speaker 2: come to us, you know, we've had a bunch of
8:10
Speaker 2: clients that will say, I've been looking forward to this meeting.
8:13
Speaker 2: You know, I've been thinking about it for two years
8:15
Speaker 2: I've paid off all my debts, I've paid off my HEX.
8:17
Speaker 2: I'm now ready to look at purchasing when in reality,
8:21
Speaker 2: maybe their hex didn't need to be paid down and
8:23
Speaker 2: closed immediately, where those funds could have gone towards a
8:26
Speaker 2: deposit to purchase their property earlier.
8:28
Speaker 4: Yeah, and you'd never say that, Like you don't sit
8:30
Speaker 4: in a meeting with a client and go, oh my god,
8:32
Speaker 4: like you didn't have to do that. You kind of go, oh,
8:34
Speaker 4: good job, like amazing. But like in the background, as
8:38
Speaker 4: a broker and like as the business owner, I'm always like, oh,
8:40
Speaker 4: I wish you'd kind of like not done that, because
8:42
Speaker 4: I could have like leveraged this and done this. I've
8:44
Speaker 4: got you in and you wouldn't have had to stress
8:46
Speaker 4: as much, and.
8:47
Speaker 2: So you don't need to be making changes before you
8:49
Speaker 2: speak to us, yea, you know, come to us, tell
8:51
Speaker 2: us the scenario now, what your goals look like, and
8:54
Speaker 2: then we can sort of guide you into what you
8:56
Speaker 2: should be doing or focusing on.
8:57
Speaker 4: Really, I think my favorite part of that is even
9:00
Speaker 4: if you come in and you're not going to be
9:02
Speaker 4: a client for the next five years, you kind of
9:04
Speaker 4: fall into the Zello ecosystem and like we just pester you,
9:08
Speaker 4: like yeah, in a nice way. We're like, oh, hey,
9:10
Speaker 4: how's that going, like in six months, or like you
9:13
Speaker 4: get our newsletters and our updates, so like you kind
9:15
Speaker 4: of fall into the ecosystem of being kept in the
9:18
Speaker 4: loop of that dream and that goal. And we find
9:20
Speaker 4: that a lot of people say like, oh my gosh,
9:22
Speaker 4: like I feel so motivated because, like, you know, I
9:23
Speaker 4: get an email from Jack a couple of months after
9:26
Speaker 4: our meeting, going oh, hey, how did that thing go?
9:29
Speaker 4: Tell me about that though, because there's a lot of
9:30
Speaker 4: work in the background when it comes to the business,
9:33
Speaker 4: and I'm sure people are going to send messages and
9:34
Speaker 4: we'll craft some episodes in the future around answering those
9:38
Speaker 4: as clearly as possible. But like, when a client comes
9:41
Speaker 4: in for an initial meeting, what does the journey look like?
9:44
Speaker 4: Do they you know them buy house the next day,
9:47
Speaker 4: or do they you know, stay in contact with you?
9:50
Speaker 4: Are you just contacting them because you're like, oh, this
9:52
Speaker 4: is a client and I should follow up like they're
9:53
Speaker 4: on my list. I'm asking because I know you're real
9:55
Speaker 4: PERVN you get so emotionally investigator.
9:59
Speaker 2: That's and a point with me. Will know that I
10:01
Speaker 2: tend to speak to you as if we are best friends.
10:03
Speaker 2: We are I get carried away, and we'll speak to
10:07
Speaker 2: you as if I've known you for a lifetime. So
10:10
Speaker 2: I do get I guess invested, and I do want
10:12
Speaker 2: to check in and things like that. So at the
10:14
Speaker 2: end of the conversation, whether that you know they're saying
10:16
Speaker 2: they want to purchase in five years, I will always
10:18
Speaker 2: say to them if anything changes throughout that timeframe, like
10:22
Speaker 2: if you change jobs in six months time and you
10:24
Speaker 2: want to see what that looks like, if you ended
10:26
Speaker 2: up saving more in a shorter period of time, and
10:28
Speaker 2: you just want to see what that changes and where
10:30
Speaker 2: that sets the goalpost, Like get in touch, shoot me
10:32
Speaker 2: through an email whenever you want. We can touch base
10:34
Speaker 2: as many times as you want. It doesn't matter.
10:36
Speaker 4: Yeah, no, And I love that. Now there are going
10:39
Speaker 4: to be some people who are like, oh, that actually
10:41
Speaker 4: sounds so good. I thought I'd have to save or
10:43
Speaker 4: be a really big investor before I actually have this conversation.
10:47
Speaker 4: I've decided I want to book. How much is it going.
10:50
Speaker 2: To cost me nothing?
10:52
Speaker 4: Let's talk about that, like I'm in a book. An
10:54
Speaker 4: appointment with a mortgage broker to be very clear right now,
10:57
Speaker 4: we're talking from our experience, from our business. But some
11:01
Speaker 4: mortgage brokers are going to charge an initial fee and
11:04
Speaker 4: that doesn't mean that they're bad. Like we're not here
11:07
Speaker 4: to say, oh, this model is better than that. We
11:09
Speaker 4: don't charge initial fees because we just don't want to.
11:13
Speaker 4: I don't know, I want to be accessible. I don't
11:15
Speaker 4: want people to have to jump through hurdles and come
11:17
Speaker 4: up with five hundred bucks cash complete side note, It's
11:19
Speaker 4: why I got out of financial advice. Like I adored it.
11:23
Speaker 4: I loved doing what I did, but it was so
11:25
Speaker 4: prohibitive when it came to cost, Like if you couldn't
11:28
Speaker 4: afford my advice, what you don't get to be in
11:29
Speaker 4: a better financial situation. Yeah, I didn't like that, and
11:33
Speaker 4: so we've carried that into Zella money. But some people
11:37
Speaker 4: do charge an initial feed like that does not change that.
11:39
Speaker 4: Some brokers rebate it. So like you might pay your
11:42
Speaker 4: five hundred dollars fee up front and then when you
11:44
Speaker 4: finally settle a mortgage you get the cash back. Fine,
11:48
Speaker 4: how does it work with us and with most brokers?
11:50
Speaker 4: Because I feel like our model and the way that
11:52
Speaker 4: you work with us is the same as most.
11:54
Speaker 2: Yeah, so you can come to us and make an appointment,
11:57
Speaker 2: like we said, you know, free of charge upfront. There
11:59
Speaker 2: is some circumstances where we will need to charge fee,
12:02
Speaker 2: but we're going to be really upfront and honest with
12:04
Speaker 2: you from the get go if we even see that
12:06
Speaker 2: as a possibility. Why would we do that though, So
12:08
Speaker 2: if you're coming to us to obviously get a better
12:11
Speaker 2: interest rate and looking at refinancing, but you're telling me
12:14
Speaker 2: upfront that you're wanting to get a better interest rate,
12:17
Speaker 2: but you're actually going to be selling that property within
12:19
Speaker 2: six months to us as a broker, we will get
12:22
Speaker 2: one hundred percent clawback in that first year.
12:24
Speaker 4: What's clawback.
12:26
Speaker 2: Clawback is where the banks do pay us a commission
12:29
Speaker 2: as a thank you for bringing you on as a client.
12:31
Speaker 2: So it just means that they may not necessarily have
12:33
Speaker 2: gotten you as a client had you not come to
12:36
Speaker 2: our brokering services. And we've shown all the nitti gritty
12:39
Speaker 2: and details behind the scenes. So in terms of charging
12:43
Speaker 2: an upfront fee, it would be yeah, if you were
12:46
Speaker 2: open on est about that saying that you're going to
12:47
Speaker 2: look at selling, we just obviously need to recoup the
12:50
Speaker 2: funds that we were going to lose because no one's
12:52
Speaker 2: working for free.
12:53
Speaker 4: Yeah. At the end of the day, like we are
12:55
Speaker 4: getting paid. We're not saying, oh, we're a charity. Yeah,
12:58
Speaker 4: And that's why I don't know. In the first half
12:59
Speaker 4: of this episode, I wanted to be super clear about
13:01
Speaker 4: how that works. But then let's dive a little bit deeper.
13:06
Speaker 4: The word commission can be a pretty dirty word to
13:10
Speaker 4: me about that, yes or no.
13:14
Speaker 2: I can't talk for everyone else, obviously, I'm talking specifically
13:16
Speaker 2: for Zella and how we work. We are very, very
13:19
Speaker 2: very upfront on how we get paid and what we
13:22
Speaker 2: get paid. There is a document that you will receive
13:25
Speaker 2: that outlines exactly to the sense what we are receiving
13:28
Speaker 2: as an upfront commission based on this loan, and also
13:31
Speaker 2: what the trail looks like going forward for as long
13:33
Speaker 2: as you hold that loan. Like I said, no one's
13:35
Speaker 2: working for free. This is how we get paid. It's
13:38
Speaker 2: not a new structure by any means. This has been
13:41
Speaker 2: going on for years and we're not hiding it.
13:43
Speaker 4: But it used to be a little bit dodgy, right,
13:45
Speaker 4: Like I feel like it used to be. Some banks
13:47
Speaker 4: would have better commissions than others. Now they're across the
13:51
Speaker 4: board the same. Yeah. I think it's an interesting concept
13:54
Speaker 4: because I get it. Like before I worked in this industry,
13:57
Speaker 4: before I had the financial literacy that I improvally to have,
14:01
Speaker 4: I was very much like ill, like mortgage brokers work
14:04
Speaker 4: for commission, And now I'm the broker with the business
14:07
Speaker 4: that works for commission. And I mean I'm not brokering
14:10
Speaker 4: the loans. You guys do the hard work and the
14:13
Speaker 4: hard yards. I'd just sit in the background and wave
14:15
Speaker 4: and go anything you need, sweetie, you're doing a great job.
14:19
Speaker 4: I think it used to be this dirty word, but
14:21
Speaker 4: now post the Royal Commission, everything has been smoothed across you, like,
14:25
Speaker 4: we don't get the bonuses and the benefits.
14:27
Speaker 2: No, but you're right fifteen years ago, I've definitely seen it.
14:31
Speaker 4: Do you remember seeing, like fifteen years ago in the
14:32
Speaker 4: industry the conferences that people would go to, Like I
14:35
Speaker 4: remember brokers would go on conferences, and like, as a
14:39
Speaker 4: financial advisor, I was very privy to it. I remember
14:42
Speaker 4: one of them going on a helicopter to Macau to
14:45
Speaker 4: go to the casinos there, and the bank was funding it. Like,
14:49
Speaker 4: let's be really honest. It used to be cooked. That's
14:52
Speaker 4: illegal now, like that can't happen anymore. And I feel
14:55
Speaker 4: like if you're talking to you mum or your dad
14:57
Speaker 4: and they had that historic experience, Oh.
15:00
Speaker 2: That's exactly right.
15:01
Speaker 4: Don't talk to a broker. I know you've got this
15:02
Speaker 4: meeting with Jack, Like they're not going to put you
15:04
Speaker 4: in the best possible position. What do you even say
15:06
Speaker 4: to that?
15:07
Speaker 2: Well, I mean, for us, the way that we work,
15:10
Speaker 2: we obviously outlined to you know, put together a product comparison,
15:14
Speaker 2: we'll send it through to you, We'll put our recommendations
15:16
Speaker 2: in there, but we outline it for you so visually
15:19
Speaker 2: that you can see the benefits in each way. There's
15:21
Speaker 2: no hiding behind the fact, like we aren't going to
15:24
Speaker 2: place you with a lender that you know, we think
15:26
Speaker 2: is paying more in commission if it's not going to
15:29
Speaker 2: benefit you. And the reason that we can't do that
15:31
Speaker 2: is there's actually you know, laws in place for best
15:34
Speaker 2: interest duties that we have to adhere to as to
15:37
Speaker 2: why we are placing you with that lender. And again
15:39
Speaker 2: you will see that information as to what we've put
15:42
Speaker 2: in there and why. So there's no hiding or being
15:46
Speaker 2: sneaky anymoarning at that. But yeah, I definitely see from
15:49
Speaker 2: you know, talking to your parents or many many years ago,
15:53
Speaker 2: people used to place I guess you with maybe a
15:56
Speaker 2: not so favorable lender because they may have been getting
15:58
Speaker 2: paid more in commission.
15:59
Speaker 4: But that's just it's not the reality anymore, and it
16:01
Speaker 4: just across the board doesn't happen. I don't know, I
16:04
Speaker 4: feel like I want to be pervy and like give
16:06
Speaker 4: people some insight into our business because like we're really
16:09
Speaker 4: proud of it and the way that we work. But
16:12
Speaker 4: even the brokers the work for Zella, it doesn't matter
16:14
Speaker 4: if you're doing what one hundred thousand dollars refinance or
16:17
Speaker 4: you're you know, helping a first home buy buy like
16:19
Speaker 4: a nine hundred and fifty thousand dollar property, you individually
16:22
Speaker 4: as a mortgage broker get paid the same, right, correct. Yeah,
16:24
Speaker 4: So like it doesn't actually change it. And I think
16:27
Speaker 4: that that's a really important factor. And why sounds like
16:31
Speaker 4: a Zella like spokesperson area, but why clients have a
16:34
Speaker 4: consistent experience.
16:35
Speaker 2: It's such similar experience. It's regardless of your situation and
16:37
Speaker 2: where you're sitting one percent.
16:39
Speaker 4: Because like sometimes you might go to another broker who
16:42
Speaker 4: maybe is an independent and that's fantastic and they will
16:44
Speaker 4: have access to everything that we.
16:45
Speaker 2: Do and they don't see the benefit.
16:47
Speaker 4: But they're like, oh, I can't be bothered working with
16:49
Speaker 4: that client because you know, I've got this other client
16:51
Speaker 4: and they do have to do a cost benefit analysis
16:53
Speaker 4: and make the right decision for their business and no shade,
16:56
Speaker 4: But that is not how I wanted to run the business,
16:59
Speaker 4: not just us anyway, moving on, I feel like I've
17:03
Speaker 4: got questions about schemes and grants and they're different things,
17:08
Speaker 4: but like, how do you know the difference? And I mean,
17:11
Speaker 4: while in Australia we have access to these things, how
17:14
Speaker 4: do we familiarize ourselves with maybe what we might be
17:17
Speaker 4: able to access and how that works? Like where do
17:19
Speaker 4: we even begin?
17:21
Speaker 2: I mean, talk to a mortgage broke.
17:23
Speaker 5: I don't like pretend I don't want to talk to you, Jacqueline.
17:26
Speaker 5: Let me pretend I want to do my own research.
17:28
Speaker 5: You shouldn't obviously jump on Google, Yah, jump on the internet.
17:31
Speaker 5: Start having a little research seeing what you can find out.
17:35
Speaker 5: But again, obviously you know you might not find ones
17:37
Speaker 5: that are one hundred percent applicable to you.
17:40
Speaker 2: And that's why we do, say, you know, get in
17:41
Speaker 2: touch with the mortgage broker, because we're going to have
17:43
Speaker 2: a wide range. You know, there's different schemes that are
17:47
Speaker 2: available to you in each state, so it's not just
17:50
Speaker 2: a blanket all across Austraight. There certainly are ones that
17:53
Speaker 2: you know, our most common ones are First Home Guarantee Scheme,
17:56
Speaker 2: First Home Owners Grant, and First Home Super Saber scheme.
18:00
Speaker 2: They're probably the most common ones that we do see,
18:02
Speaker 2: but there is particular ones to each state. So knowing
18:05
Speaker 2: what's available to you, I guess in your hometown and
18:08
Speaker 2: when you're purchasing.
18:09
Speaker 4: Yeah, absolutely, And I feel like you can do that
18:12
Speaker 4: research yourself, and like, I like the idea that we
18:14
Speaker 4: empower people to do it on their own, but if
18:16
Speaker 4: you don't want to, we can do it for Yeah,
18:17
Speaker 4: that's fine. Yea, But what's your favorite scheme? Like, do
18:21
Speaker 4: you have a favorite that you're like, oh, yeah, what
18:23
Speaker 4: is it? I feel like it's like everybody kind of
18:26
Speaker 4: has their own favorite, and I want to know, do.
18:28
Speaker 2: I first time Guarantee scheme? I mean it's just purely there,
18:33
Speaker 2: you know, for our first time bias to sort of
18:34
Speaker 2: give them a leg up. Like obviously not everybody.
18:36
Speaker 4: We get from it. So if I've never heard about
18:38
Speaker 4: this scheme, what does it.
18:40
Speaker 2: Provided me with. I mean, there is no Alumi charge,
18:42
Speaker 2: so first home guarantee scheme, no al am I.
18:46
Speaker 4: El am I can be expensive.
18:48
Speaker 2: So expensive. I've honestly seen fifty thousand dollars before in
18:52
Speaker 2: al Ami and people have paid it, and I mean,
18:56
Speaker 2: no shame to pay. It's going to get you into
18:58
Speaker 2: the house, you know, if that's what you've got to do,
18:59
Speaker 2: that's what you got to do. But if you can
19:01
Speaker 2: avoid paying fifty thousand dollars an alumi, yeah why not?
19:05
Speaker 4: Yeah?
19:05
Speaker 2: So you need to have five percent to posit as
19:07
Speaker 2: a minimum. Obviously you can have more. You know, you've
19:10
Speaker 2: got six seven, eight percent up your sleeve, perfect, we
19:12
Speaker 2: can put that down as well, but a bare minimum
19:14
Speaker 2: five percent. But the one thing that I really love
19:17
Speaker 2: about this scheme is obviously the interest rates most lenders.
19:20
Speaker 2: If you took this exact scenario outside of this scheme
19:24
Speaker 2: and place it with another lender that wasn't within the scheme,
19:27
Speaker 2: you're going to get charged al Ami like we've spoken about,
19:29
Speaker 2: but you're going to get charged really really hefty interest rates.
19:33
Speaker 4: They're really hogh, and they have to hike them up
19:35
Speaker 4: because they're hedging their bets and their risk and like
19:37
Speaker 4: it makes sense from a business perspective, but that ends
19:40
Speaker 4: up impacting you significantly financially definitely.
19:43
Speaker 2: So with the first time guarantee scheme, most lenders, I'm
19:46
Speaker 2: not going to say all, most lenders will price your
19:49
Speaker 2: rates at eighty percent ELVIR so loan to value ratio
19:52
Speaker 2: meaning good?
19:53
Speaker 4: Is that bad? I mean, I know, but like I
19:54
Speaker 4: feel like as a brokeer, you're like, yeah, eighty percent
19:57
Speaker 4: LVR fantastic? What is what jacquelin?
20:00
Speaker 2: So I'm talking you know, the banks are looking at
20:03
Speaker 2: you as if you had a twenty percent deposit, So.
20:05
Speaker 4: Obviously it's a good thing. Right, So you're saying that
20:07
Speaker 4: I can have a five percent deposit, but the bank
20:09
Speaker 4: is going to lend money to me as though I
20:11
Speaker 4: had a twenty percent deposit. That is very sexy.
20:14
Speaker 2: Yeah, we love to see that, I know, so so good.
20:18
Speaker 4: How do I access that? If I wanted to do?
20:21
Speaker 4: I just apply for it? Are there caps on who
20:23
Speaker 4: can have it?
20:24
Speaker 2: Like?
20:24
Speaker 4: Is there a purchase price limit? Can I spend six
20:26
Speaker 4: billion dollars? Can I buy a whole apartment? Complex.
20:30
Speaker 2: What the rule, It's definitely not available to everyone, so
20:33
Speaker 2: you've got to fit within I guess the criteria. So
20:36
Speaker 2: you've got to be a permanent resident or a strained citizen.
20:39
Speaker 2: There is property price caps in each state.
20:41
Speaker 4: They actually set those property price caps based on the
20:44
Speaker 4: average purchase price in that state, So like if it's
20:47
Speaker 4: like Sydney, you actually have a little bit more leeway
20:49
Speaker 4: than you might in Tasmania.
20:51
Speaker 2: And you do find that they do increase I guess
20:54
Speaker 2: over time. There's no guarantee that they will definitely increase
20:58
Speaker 2: every financial year, but going in life with the property prices,
21:01
Speaker 2: you should see them slowly increase as well. But there's yeah,
21:04
Speaker 2: property price thresholds in there. There's income thresholds. So we're
21:08
Speaker 2: talking one hundred and twenty five thousand dollars for a
21:10
Speaker 2: single applicant and two hundred thousand dollars for a couple
21:14
Speaker 2: tool income.
21:15
Speaker 4: Yeah, and I feel like that's fair. Like at the
21:17
Speaker 4: end of the day, it's helping the people that are
21:19
Speaker 4: usually in a situation where pulling that deposit together is
21:23
Speaker 4: far more of a stretch than if you had, you know,
21:25
Speaker 4: a joint income of more than two hundred grand, like
21:28
Speaker 4: I'm not saying that that makes it super easy. And
21:31
Speaker 4: I feel like we talk to clients all the time
21:33
Speaker 4: who are like, oh, we own two hundred and five
21:35
Speaker 4: thousand dollars and you're just like, oh, I wish you
21:38
Speaker 4: ear you know, six thousand dollars less like how do
21:42
Speaker 4: we do that? But that's also where a broker can
21:44
Speaker 4: come in handy and we can talk to you about
21:46
Speaker 4: lowering your taxable income in that particular situation and like,
21:50
Speaker 4: you know, not advice, but you could potentially make a
21:52
Speaker 4: superanuation contribution so that then that becomes a lower taxable
21:57
Speaker 4: income situation for you. And I think these are things
22:01
Speaker 4: that you just don't know unless you know, and you
22:03
Speaker 4: need to talk to the right people and be in
22:06
Speaker 4: the right situation. And I think the biggest thing here
22:09
Speaker 4: that I want to get across is that if getting
22:12
Speaker 4: into property is your dream, just talk to a mortgage broker.
22:16
Speaker 4: And I mean the way that we work is that
22:19
Speaker 4: we do like an online kind of form. We want
22:21
Speaker 4: to know as much about you before we pick up
22:23
Speaker 4: the phone to make sure that we're not wasting your time.
22:26
Speaker 4: And so you might fill in a form and be like, hey,
22:29
Speaker 4: V I'm in personal debt of like thirty thousand dollars
22:32
Speaker 4: and I want to get out of it and I
22:34
Speaker 4: want to buy property in this that the other. We
22:36
Speaker 4: will often reply and be like okay, cool, So like
22:38
Speaker 4: we don't even need to see you to give you
22:39
Speaker 4: some advice to put you in the best possible position.
22:41
Speaker 4: Here are the resources that you need, and come back
22:43
Speaker 4: in six months and we can book that appointment because
22:46
Speaker 4: you're going to be in a far better position to
22:48
Speaker 4: be moved along the process and to get you going.
22:52
Speaker 4: And so I don't know, I just get so excited
22:54
Speaker 4: about getting people into their first homes. Let's go to
22:58
Speaker 4: a really quick break. But if I you, I would
23:00
Speaker 4: probably stick around because when we come back, we are
23:03
Speaker 4: going to be unpacking what banks really look at when
23:05
Speaker 4: they are assessing loans and how to make yourself a
23:08
Speaker 4: stronger candidate. And I'm going to be asking Jack for
23:11
Speaker 4: her top tip to save you literally thousands of dollars
23:14
Speaker 4: on your home loan. Guys, you're not going to want
23:17
Speaker 4: to miss this one. All right, my friends, we are back,
23:23
Speaker 4: and I feel so privileged. I've got Jacqueline, who is
23:26
Speaker 4: one of the Zella money brokers here in the studio
23:28
Speaker 4: with me. It took a little bit of convincing to
23:31
Speaker 4: be like, will you come on my show? You've asked me,
23:33
Speaker 4: I know, and I am so excited that you are
23:36
Speaker 4: finally here, because do you know what all our clients say,
23:39
Speaker 4: They're like, Oh, why hasn't Jack been on the show yet?
23:41
Speaker 4: She'd be great. I'm going to send this to everyone
23:44
Speaker 4: who's ever asked me, just so you know, But I
23:47
Speaker 4: want to know. One of the other questions that we get,
23:50
Speaker 4: apart from like when should I see a broker? Is Jack?
23:53
Speaker 4: What do banks actually look at like when they're assessing
23:56
Speaker 4: a home loan application and we're going through that process.
23:58
Speaker 4: I feel like it's kind of one is the Wild West.
24:01
Speaker 4: But then it also feels like a really big secret
24:04
Speaker 4: because you know, you submit all your information and you
24:06
Speaker 4: kind of know, oh, they want to look at my
24:08
Speaker 4: bank statements, and then they want to look at my payslips,
24:10
Speaker 4: and then they want to know, you know, what my
24:11
Speaker 4: intentions are and if I have any dependence and like
24:14
Speaker 4: what does my boyfriend do for work? And like it
24:17
Speaker 4: can be really pervy that I want to know. How
24:22
Speaker 4: do we know if we're ticking the right boxes or
24:26
Speaker 4: doing the wrong thing?
24:28
Speaker 2: I mean banks will look at obviously a range of things.
24:31
Speaker 2: There's so much to take into account, but it really
24:34
Speaker 2: is quite specific to your scenario. What the bank's can
24:37
Speaker 2: ask for someone that is a individual purchasing on their
24:41
Speaker 2: own going through, like I said, the first time guarantee
24:43
Speaker 2: scheme is going to be completely different to someone who's
24:46
Speaker 2: as a couple, as a dependent has a larger deposit.
24:49
Speaker 2: There's just different documents that's needed. So whilst there is
24:53
Speaker 2: a lot that the bank can look at, they're not
24:55
Speaker 2: necessarily going to look at absolutely everything. And I mean
24:58
Speaker 2: that because someone that's going to go through the first
25:01
Speaker 2: home guarantee scheme, you know, we need to show a
25:03
Speaker 2: minimum five percent, which is classified as genuine saving. So
25:06
Speaker 2: the bank's going to need to see three months worth
25:08
Speaker 2: of statements on your savings account to show that that's
25:10
Speaker 2: sort of been sitting there and growing over time. But
25:13
Speaker 2: someone that's you know, got a twenty percent deposit just
25:16
Speaker 2: doing an eighty percent lend against that property, we're not
25:19
Speaker 2: necessarily needing to show any of that genuine savings, So
25:22
Speaker 2: that sort of document gets pushed aside. It's not something
25:24
Speaker 2: that we need to see. Obviously, we need to know
25:26
Speaker 2: what the funds are to complete and how you're doing that.
25:28
Speaker 2: But the bank's not needing to be like with a
25:30
Speaker 2: fine toothcomb saying how long's this been your account for?
25:33
Speaker 2: Do we have five percent? Things like that, So it
25:36
Speaker 2: is very specific to your situation on what's needed.
25:39
Speaker 4: And that's so annoying, like, not not any individual, but
25:43
Speaker 4: just for the client experience, right, because I might go, Hey,
25:48
Speaker 4: my friend Alisha, she used Jacqueline as a broker and
25:52
Speaker 4: she got this loan with this criteria and this rat.
25:56
Speaker 4: I'm going to go see Jacqueline because that's what she got, Alisha,
25:59
Speaker 4: and I want that Jack give that to me. Yeah,
26:01
Speaker 4: I know, how do we deal with that? Because I
26:03
Speaker 4: feel like so many of us, like I want you
26:05
Speaker 4: to ask your friends and family for referrals. Like, to me,
26:08
Speaker 4: that is the best way to find someone legitimate. Yeah,
26:12
Speaker 4: and find someone who's going to care about your situation,
26:14
Speaker 4: someone that you're going to resonate with. But that doesn't
26:16
Speaker 4: mean that the situation will be the same. Like even
26:18
Speaker 4: if it's your coworker and you earn the same amount
26:20
Speaker 4: of money.
26:21
Speaker 2: It comes back to people saying, you know, but my
26:23
Speaker 2: friends on this rate with the same bank why are
26:26
Speaker 2: not on that rate?
26:27
Speaker 4: And it's heartbreaking as well because you're like, baby, if
26:29
Speaker 4: I could get you that rate, I promise you right,
26:31
Speaker 4: it doesn't change my outcome. I don't make less money
26:34
Speaker 4: or more money based on your rate. I actually would
26:37
Speaker 4: love to give you the lowest possible rate.
26:38
Speaker 2: Yeah. Like I said, there's so many factors that will
26:40
Speaker 2: come into it. How much deposit you're putting down, what
26:42
Speaker 2: your loan to value, your ratio looks like, your employment types,
26:46
Speaker 2: and you know, credit scores is a big one too.
26:48
Speaker 4: Credit scores are something that scares so many people in
26:51
Speaker 4: our community. How seriously are they taken when it comes
26:55
Speaker 4: to getting your first home?
26:56
Speaker 2: Yeah?
26:57
Speaker 4: Very yeah, pretty seriously. Yeah, get a good credit score.
27:01
Speaker 2: Good conduct would be the number one. Any credit in
27:04
Speaker 2: your name as well as rental leases that grows against
27:08
Speaker 2: your credit score as well, whether you've had a phone
27:10
Speaker 2: in your name before, things like that gets taken into account.
27:15
Speaker 2: The credit scores side. It does have a huge impact. Obviously. Again,
27:20
Speaker 2: I feel like a broken record, but it comes down
27:22
Speaker 2: to you.
27:22
Speaker 4: You've never been on the podcast yet, so you can
27:25
Speaker 4: say that next episode.
27:26
Speaker 2: So it comes down to your scenario. I mean, if
27:29
Speaker 2: there's you know a valid reason as to why your
27:33
Speaker 2: score is so low and it's been rectified, and we
27:35
Speaker 2: can show that. You know, that might be something that
27:38
Speaker 2: we can get across the line. But if you just
27:40
Speaker 2: come to us with a poor credit rating because your
27:43
Speaker 2: conduct's been really poor, because you've just forgotten to make
27:45
Speaker 2: your payments on your personal life or yeah, whatever it
27:49
Speaker 2: looks like, just because you were lazy or forgetful for
27:54
Speaker 2: a multiple period of time, I'm talking like you've really
27:57
Speaker 2: assaulted and all of that. Yes, it's going to definitely
28:01
Speaker 2: hinder your credit score, and it's also going to hinder
28:04
Speaker 2: what options are available in terms of the lender options.
28:07
Speaker 4: And I think that something that you could do today
28:10
Speaker 4: as well as a listener or someone who's thinking about property,
28:13
Speaker 4: or you might not even be thinking about property, is
28:16
Speaker 4: investigate your own credit score. So if you don't know
28:19
Speaker 4: what that number is, you can for free request a
28:22
Speaker 4: credit score report. At work, we use a company called Equifax.
28:26
Speaker 4: You can get them literally from so many different suppliers,
28:29
Speaker 4: but they will send you an email report of your
28:31
Speaker 4: credit score after you've gone through a few hoops improven
28:34
Speaker 4: your identity. And that can be a really powerful way
28:37
Speaker 4: of seeing what that might look like before you talk
28:40
Speaker 4: to a broker, and what that might look like in
28:43
Speaker 4: case there is some dodgy credit in your name that
28:45
Speaker 4: isn't yours. One of the best finance tips that I
28:49
Speaker 4: have for people who are like, oh, yeah, but what
28:50
Speaker 4: else can I do? Like you know, obviously pay down
28:52
Speaker 4: your debts all of that other fun stuff, but like
28:55
Speaker 4: be aware of your credit score, because heartbreakingly, we have
28:59
Speaker 4: had people come to us Jack who you're like, yep, cool,
29:02
Speaker 4: like you're brilliant, no worries, and then we look into
29:04
Speaker 4: their credit score and what do we find. Yeah, like
29:07
Speaker 4: we find an absolute mess and you go, oh hey,
29:10
Speaker 4: so we actually can't work on this loan at this
29:12
Speaker 4: point because like you've got this personal loan. Yeah, and
29:14
Speaker 4: they go, I don't have a personal loan, and then
29:17
Speaker 4: we're going down a whole scam and fraud.
29:19
Speaker 2: Yeah. I've actually had that before. Yeah, someone's been scammed.
29:22
Speaker 2: It's ruled their credit rating. Like I said, that's why
29:24
Speaker 2: I'm saying, it's specific. If we can prove and.
29:27
Speaker 4: There's and we can actually help you in that situation,
29:30
Speaker 4: Like we actually thankfully have all the contacts to get
29:33
Speaker 4: that cleaned up. And like if that is legitimately not
29:36
Speaker 4: your issue and not your thing. We can have it
29:39
Speaker 4: removed from your credit score. Fair few hoops to jump through,
29:42
Speaker 4: but my friend, we have done it before. Jack. I
29:45
Speaker 4: feel like for a lot of our community, they just
29:47
Speaker 4: feel like property is out of reach, like it is
29:50
Speaker 4: still so far away. Like I feel like so many
29:55
Speaker 4: of us are I don't know, close to thirty, just
29:57
Speaker 4: over thirty and still thinking like, oh my god, I
29:59
Speaker 4: thought that I would have achieved this by now. Like
30:02
Speaker 4: we are living in a different time and the goalposts
30:05
Speaker 4: are so different to what they used to be. Can
30:09
Speaker 4: you talk to me about what we could do to
30:11
Speaker 4: put ourselves in a better position if we're like we
30:14
Speaker 4: really want to buy property, but it just feels so
30:16
Speaker 4: far away, or just I can't save or I can't
30:19
Speaker 4: you know, seem to get ahead. Where are we going?
30:22
Speaker 4: What are we doing so that we can still create
30:24
Speaker 4: the life that we deserve.
30:25
Speaker 2: Yeah, I mean get in touch with the broker obviously,
30:28
Speaker 2: Like I've said, when you start even thinking about that,
30:30
Speaker 2: whether that is five ten years off, if that's what
30:34
Speaker 2: it feels like, there's obviously resources available online. You've got
30:37
Speaker 2: the National Debt Helpline that you can reach out to
30:40
Speaker 2: and they one if.
30:41
Speaker 4: She's on the money's favorites. Honestly, the people there are
30:43
Speaker 4: so kind and like I always say this, but I'm
30:46
Speaker 4: always going to say this when you call them, You're
30:49
Speaker 4: not like calling the CEO of the bank and being like,
30:51
Speaker 4: oh my god, I have no money, Like you're going
30:54
Speaker 4: to think I'm so silly. No, they're people just like
30:56
Speaker 4: you who actually have chosen to work at the National
30:58
Speaker 4: Debt Helpline help. They are so empowered when they help
31:01
Speaker 4: people in situations like yours. I promise when you pick
31:04
Speaker 4: up that phone, the person who's going to answer it
31:06
Speaker 4: is going to be like, oh my gosh, Jack, I'm
31:07
Speaker 4: so glad you cold, Like you'll be shocked at how
31:10
Speaker 4: supported you feel. I think there's this massive misconception that
31:14
Speaker 4: they're going to, i don't know, crucify you, like oh
31:16
Speaker 4: yeah right, and like they're not and like is a
31:19
Speaker 4: broker going to judge you? Like, because we just want
31:23
Speaker 4: the best for you, we might give you some hard truths,
31:27
Speaker 4: like we might have to sit you down and go, hey,
31:29
Speaker 4: if you don't change your spending habits, this goal of
31:31
Speaker 4: yours isn't actually achievable. But like I think that that's
31:35
Speaker 4: the beauty of having a good relationship with a broker,
31:38
Speaker 4: because we're going to give you the tough love, but
31:40
Speaker 4: it's because we want the best for you.
31:42
Speaker 2: Yeah. Well, obviously, like I said, hold your hand throughout
31:45
Speaker 2: that process, Like step by step, we can market our
31:48
Speaker 2: calendars to follow up in six months time. Let's talk
31:51
Speaker 2: about it. Where are we at. Have we done a
31:52
Speaker 2: new budget, how much are we saving now? Are we
31:55
Speaker 2: on track? Things like that?
31:56
Speaker 4: Yeah, I love it, But let's move on to income
32:00
Speaker 4: and expenses. Jack, I want to know if a bank
32:03
Speaker 4: is looking at financial health. Obviously they're having a look
32:05
Speaker 4: at your credit score, they're having a look at your income.
32:09
Speaker 4: What are their spending or saving habits that people could
32:12
Speaker 4: implement to make themselves look like really shiny to a bank.
32:15
Speaker 4: Because there's some information flying around. I saw a TikTok
32:18
Speaker 4: the other day. A girl was like, four months before
32:21
Speaker 4: I got alone, I had no uber ets. I deleted
32:24
Speaker 4: the app off my phone and I did this, and
32:25
Speaker 4: I did that. Like from a BROKEUS perspective, what are
32:29
Speaker 4: you hot tips and tricks to make yourself? You know,
32:31
Speaker 4: let's pretend six months out from purchasing your first home,
32:34
Speaker 4: look like a very respectable human being that they definitely
32:38
Speaker 4: want to lend hundreds of thousands of dollars too.
32:42
Speaker 2: Yeah, obviously raining and the splurging banks are going to
32:46
Speaker 2: have a look, you know, three months back into your statements.
32:49
Speaker 4: So I was starting six months.
32:50
Speaker 2: Yeah, I know, but they're only going to request that
32:53
Speaker 2: three months. Generally, they will have a look at your
32:56
Speaker 2: sort of spending habits. But I mean, the banks lenders
33:00
Speaker 2: aren't these big scary companies. Yes, they need to do
33:04
Speaker 2: their digilidance and look.
33:05
Speaker 4: I'm still scared of them.
33:06
Speaker 2: No, you need to look at your spending habits and
33:08
Speaker 2: what that's being spent on. But everyone spends at Christmas.
33:12
Speaker 2: This is not a new thing. We all buy presents
33:14
Speaker 2: for friends and family.
33:16
Speaker 4: So that's not saying that a bank is actually going
33:19
Speaker 4: to use their initiative and they're like, now, look I
33:23
Speaker 4: don't know. Yeah, some of them need a little bit more,
33:26
Speaker 4: a little bit more fine tuning. Yeah, yeah, that's okay.
33:29
Speaker 2: I mean it's common sense, isn't it.
33:30
Speaker 4: Yeah, So as a broker, you kind of know what
33:33
Speaker 4: those banks are. To be honest, you probably would avoid
33:36
Speaker 4: it for that climent.
33:37
Speaker 2: I mean, big one to avoid would be gambling one
33:41
Speaker 2: hundred percent. Everyone says no, no, no, no, I don't.
33:45
Speaker 2: But when you look into the bank statements, it's there
33:48
Speaker 2: a few times. So that's just one thing I would
33:51
Speaker 2: be definitely cleaning up, you know, and lead up to purchasing.
33:55
Speaker 4: In small amounts big amounts, like obviously it's going to
33:58
Speaker 4: be a massive issue if you have a gambling addiction,
34:00
Speaker 4: and will pop some information in the show notes to
34:03
Speaker 4: the Gambler's help line to make sure that if you
34:06
Speaker 4: are going through that literally no judgment call, get it
34:09
Speaker 4: sorted out so that you can live the life that
34:11
Speaker 4: you deserve and get what you want exactly. But if
34:14
Speaker 4: sports beat comes up a few times, a bank's going,
34:17
Speaker 4: oh you're a risky human being. What's that look like?
34:20
Speaker 4: Because you know, the races come around, the tennis is happening,
34:23
Speaker 4: like I know, it's Australian culture to have a bit
34:27
Speaker 4: of a punch, So talk to me about what's reasonable
34:29
Speaker 4: use versus not very good at all.
34:32
Speaker 2: Look, the reasonable is again common sense. Yes, Cup day?
34:37
Speaker 2: Do people have a bit on Cup Day? Yes, it's
34:39
Speaker 2: very common. The main events, you know, you do see
34:42
Speaker 2: there and there's no sort of real red flags there.
34:45
Speaker 2: It's the ongoing monthly spending, the weekly habits, the pattern.
34:50
Speaker 2: When you see a pattern there, it's not just the
34:52
Speaker 2: odd one every three months, every six months.
34:55
Speaker 4: I wanted to bring that because I didn't want the
34:56
Speaker 4: community to be like, oh, like, are you saying that
34:59
Speaker 4: you really because like my partner and I don't all
35:01
Speaker 4: we put ten bucks either way on cup day, Like,
35:04
Speaker 4: we're not saying that that's the bad thing. But when
35:07
Speaker 4: we request the three months of bank statements and it
35:10
Speaker 4: goes to the bank, like, patterns are very easily identifiable.
35:14
Speaker 4: They basically printed out and go through with a highlighter
35:17
Speaker 4: and highlight all the same things. And if there's just
35:18
Speaker 4: a lot of pink, that is a habit, that is
35:21
Speaker 4: something that is impacting your ability to pay back a mortgage,
35:25
Speaker 4: and they're going to take that into consideration and see
35:27
Speaker 4: you as a higher risk client. And we just don't
35:30
Speaker 4: need that for you.
35:30
Speaker 2: No lead up to personally first property obviously we've spoken
35:35
Speaker 2: about spending habits, but savings pattern as well. You know,
35:38
Speaker 2: showing that you can put some money aside and that
35:42
Speaker 2: you're making regular savings into your account sort of shows
35:46
Speaker 2: that you have the ability to make that mortgage repayment
35:49
Speaker 2: back even rental.
35:50
Speaker 4: I was about to say, Jack, this has changed in
35:53
Speaker 4: the last few years. Let's pretend I want to buy
35:57
Speaker 4: my first home, and you know, I leave in a city,
36:00
Speaker 4: like I'm living with my partner, so personally I'm only
36:03
Speaker 4: paying like fifteen hundred bucks a month rent, but like
36:05
Speaker 4: I'm still fifteen hundred dollars a month rent. My partner
36:08
Speaker 4: and I we've done the maths. We reckon between us
36:11
Speaker 4: three grand a month. We could probably afford a mortgage,
36:14
Speaker 4: but like it's all going on rent right now, can
36:17
Speaker 4: we still get a mortgage?
36:18
Speaker 2: Yeah?
36:18
Speaker 4: So are you saying that the bank might see that
36:20
Speaker 4: as savings? So, and maybe that's what I was getting at.
36:23
Speaker 2: Yeah, they do. If you are currently renting, they look
36:26
Speaker 2: at that rental ledger as a savings pattern to show
36:29
Speaker 2: that you've got the ability to sort of make that
36:31
Speaker 2: mortgage of payment. You're already sort of doing it, you know,
36:33
Speaker 2: in some sense. So yeah, that's definitely can be looked
36:36
Speaker 2: at as your sort of savings.
36:38
Speaker 4: And I love that, And I think that not many
36:40
Speaker 4: people know that, Like if you don't know, you don't know,
36:42
Speaker 4: because historically, when you paid your rent, they also wanted
36:45
Speaker 4: to see you saving on top of that. But that
36:47
Speaker 4: was a different time. That was when people had so
36:50
Speaker 4: much more disposable income and should have been saving on
36:53
Speaker 4: top of that because you had that leeway. But now
36:55
Speaker 4: we're seeing people come through our business and people in
36:58
Speaker 4: our community fifty sixty percent of their income is going
37:02
Speaker 4: on rent. And I remember when I started this podcast, Jack,
37:06
Speaker 4: like back in like twenty twenty, insane, so weird to
37:09
Speaker 4: talk about. We used to talk about that, you know,
37:12
Speaker 4: what's reasonable to spend on rent?
37:14
Speaker 2: Yeh?
37:14
Speaker 4: And I remember I'd do the research and work it out.
37:16
Speaker 4: And this is like pre COVID, right, So like twenty twenty,
37:18
Speaker 4: twenty nineteen, let's call it twenty eighteen, early twenty nineteen,
37:22
Speaker 4: just pre COVID, all right, it was very normal for
37:26
Speaker 4: financial advisors and mortgage brokers to have the expectation that, oh,
37:30
Speaker 4: it's actually reasonable for you to be spending thirty percent
37:32
Speaker 4: of your income on rent. Any more than that it's
37:35
Speaker 4: actually impacting your lifestyle. And so that advice is now
37:38
Speaker 4: completely outdated.
37:39
Speaker 2: But people still think that.
37:41
Speaker 4: People still think.
37:41
Speaker 2: They still come to me and saying, but I've done
37:43
Speaker 2: the math, and it's more than thirty percent of my
37:45
Speaker 2: total empowtment.
37:46
Speaker 4: I'm like, that is our dictated advice because it's a
37:49
Speaker 4: different market, it's a different situation, and I think it's
37:52
Speaker 4: good to bring that up. Are there other things that
37:55
Speaker 4: have changed in the industry since like twenty eighteen twenty nineteen.
37:59
Speaker 2: Definitely. I don't know if you've seen interest rates, but it's.
38:02
Speaker 4: Interest rates have changed, like people's incomes have not everything.
38:06
Speaker 2: Everything has changed everything, you know, that's why you talk
38:10
Speaker 2: to a mortgage broker.
38:11
Speaker 4: Yeah, one hundred percent. All right, Jack, I feel like
38:14
Speaker 4: I have taken up heaps of your time and I
38:17
Speaker 4: really want to finish on a big one because I
38:19
Speaker 4: know that this is what everyone really wants to know.
38:22
Speaker 4: I suppose do you have an ultimate money saving tip? Like,
38:25
Speaker 4: I know you're financially savvy, so I've kind of set
38:28
Speaker 4: you up like you are really good with money, but
38:30
Speaker 4: I want like one piece of advice that could save
38:33
Speaker 4: potential buyers thousands on the life of their loan. I guess,
38:37
Speaker 4: no pressure. I hope you've come prepared.
38:41
Speaker 2: Oh, one tip. I'm gonna have to probably give you
38:45
Speaker 2: a few, Okay, you know what.
38:47
Speaker 4: Like less is more, more is less? Whatever? What's your
38:50
Speaker 4: first one?
38:51
Speaker 2: I'm gonna have to say, using offsets correctly. Yeah, so
38:55
Speaker 2: offsets big one can save you thousands.
38:57
Speaker 4: So offset we can do more episodes like diving into
38:59
Speaker 4: the different specifics of different types of loans and stuff.
39:02
Speaker 4: But crash. Course, an offset is a bank account that's
39:05
Speaker 4: attached to your mortgage that offsets the amount of interest
39:07
Speaker 4: that you have to pay every single month. And you're
39:10
Speaker 4: saying that people don't use them correctly, like they set
39:12
Speaker 4: up their offset and they don't use them.
39:14
Speaker 2: Some banks have only got the ability to have a
39:16
Speaker 2: one offset, or some banks will have multiple, so people
39:19
Speaker 2: might park, you know, the bulk of savings into their offset,
39:22
Speaker 2: thinking that's great. But if you've got a large income,
39:25
Speaker 2: you know, and you're getting paid every month or every week,
39:27
Speaker 2: it's calculated daily, so it's in your best interest to
39:30
Speaker 2: sort of have you know, your income going into an
39:32
Speaker 2: offset as well. You know, you might also have another
39:34
Speaker 2: accountan's just got bills, which in your mind has only
39:37
Speaker 2: got two thousand dollars sitting in there just for my
39:39
Speaker 2: bills that are going to come out, but again calculated daily.
39:42
Speaker 2: It's better off being in an offset sitting against your mortgage,
39:46
Speaker 2: so you're not paying interest on that.
39:47
Speaker 4: And is that something that every mortgage has and we
39:51
Speaker 4: just need to use them.
39:52
Speaker 2: That's something that you need to obviously let us know
39:55
Speaker 2: that you want or the bank that you're with that
39:57
Speaker 2: you would like to have an offset and see what
39:59
Speaker 2: the options are there. But not every bank will offer it.
40:01
Speaker 1: No.
40:02
Speaker 4: Yeah, and I think that's important because some people go
40:04
Speaker 4: into a loan, like they might just go and sign
40:06
Speaker 4: up for that and go, oh, I'll just set an
40:08
Speaker 4: offset up later, like it's just bank account, right, But
40:11
Speaker 4: it has to be specifically tied to the mortgage. It's
40:14
Speaker 4: a part of that mortgage product.
40:15
Speaker 2: It needs to be linked to it.
40:16
Speaker 4: So is that something that you would bring up with
40:18
Speaker 4: a client. Are you going to be like, hey, so
40:20
Speaker 4: what we're going to do? And are you talking cash
40:23
Speaker 4: flow post settlement of the property or are you just
40:26
Speaker 4: getting them into the property and being like wam bam,
40:28
Speaker 4: thank you, ma'am catcher, Like what's the process?
40:30
Speaker 2: No, there's definitely things that will come into play, like
40:32
Speaker 2: whether or not, you know, even an offset is worth
40:35
Speaker 2: it for you. You know, you might be someone that's not
40:38
Speaker 2: going to have a large block of funds left over
40:40
Speaker 2: after settlement, after you move into the property. You might
40:43
Speaker 2: be worried about the interest rates increasing, so a variable
40:46
Speaker 2: rate might not even be best for you. You might
40:48
Speaker 2: be sort of leaning towards more of a fixed interest rate,
40:51
Speaker 2: knowing that you're going to be having the same set
40:53
Speaker 2: repayments each month that you can sort of tackle. Like
40:56
Speaker 2: a lot of clients are our first home buyers. They
40:58
Speaker 2: don't know how much a war order bill is and
41:00
Speaker 2: electricity bill is. They don't know all the other costs
41:03
Speaker 2: that come involved. So having a set amount that they
41:06
Speaker 2: can picture in their mind and it's not going to
41:08
Speaker 2: change for a period of time can be quite comforting.
41:11
Speaker 4: Yeah, And I love that because we then use the
41:14
Speaker 4: data from She's on the Money and the data that
41:16
Speaker 4: we get through all of our mortgage broking systems and
41:18
Speaker 4: software is to go, Okay, in this location, your average
41:21
Speaker 4: water beello is going to look like this. Did you
41:22
Speaker 4: know that? And they go, oh my god, no, But
41:24
Speaker 4: that's so helpful. And I love giving the perfect little
41:27
Speaker 4: details that you get as a bonus, but you didn't
41:29
Speaker 4: even know you need it.
41:30
Speaker 2: Other factors that people don't take into account. I mean,
41:33
Speaker 2: I'm detering, but you're talking like strata, insurance, body, corporate
41:38
Speaker 2: that's our top of expense on top of your monthlyer payment.
41:41
Speaker 2: That's not included in your mortgage repayment. So people get
41:44
Speaker 2: caught out. If that's another five hundred dollars a month,
41:46
Speaker 2: you've got to factor that into your spending on top
41:48
Speaker 2: of your monthly repayment.
41:49
Speaker 4: Yeah, And I feel like we get very excited about
41:52
Speaker 4: budget and cash flow in office, So like we love
41:54
Speaker 4: sitting down with clients being like, Okay, got the mortgage there,
41:57
Speaker 4: but like let's talk budget after you've settled, because we
42:00
Speaker 4: just want you to be in the best possible position.
42:02
Speaker 4: Because and I think a lot of people don't realize this,
42:04
Speaker 4: Like you use your mortgage broker to get into your
42:06
Speaker 4: first time fantastic, But that relationship, from my perspective, is
42:10
Speaker 4: a lifelong relationship. Like you're going to meet with Jack,
42:13
Speaker 4: or you're going to meet with Charlotte, or're gonna meet
42:15
Speaker 4: with one of our brokers or any broker really, and
42:18
Speaker 4: their role is to support you to get into that house.
42:20
Speaker 4: But they're going to or they should be checking in
42:23
Speaker 4: on you every six months, checking your rates, making sure
42:26
Speaker 4: you're in the best possible position. Like if you have
42:28
Speaker 4: a major life change, you should be like, oh, hey, Jack,
42:31
Speaker 4: I just wanted to check, like I'm having a baby,
42:33
Speaker 4: Like this is my favorite thing, Like when clients get
42:35
Speaker 4: engaged or when clients and I know you've had this
42:38
Speaker 4: as well. You have this like whole meeting with a
42:40
Speaker 4: couple and you're like talking about the financial life and
42:43
Speaker 4: like you know, really basic, really standard, hang up, no worries.
42:46
Speaker 4: You're like putting your file notes together and you get
42:48
Speaker 4: a call on your mobile and you're like, hey, what's
42:50
Speaker 4: up Jordan, And he goes, I didn't tell you, but
42:53
Speaker 4: I have this secret savings account for an engagement ring.
42:56
Speaker 4: It's like so fun, but like we get to go
42:59
Speaker 4: through that journey with clients, and when your situation changes,
43:03
Speaker 4: sometimes your mortgage does as well. So I think fostering
43:06
Speaker 4: a relationship where you're broker is on the front foot.
43:10
Speaker 2: And they're on your side. Oh yeah, they're about it.
43:12
Speaker 4: For you, and it's fun batting for you too. Like
43:14
Speaker 4: I'm not saying that we always want it to be tricky,
43:16
Speaker 4: but when it gets tricky, the whole office is behind you.
43:19
Speaker 4: Beave me, believe me. We're all like, hey, have you
43:22
Speaker 4: had this before? If not, what are we doing? How
43:24
Speaker 4: are we doing?
43:25
Speaker 2: It.
43:25
Speaker 4: Oh Lisha's done that before and you're worries, Alicia, can
43:27
Speaker 4: you call your contact and see if your contact can
43:29
Speaker 4: do this for me? Like it becomes a game to
43:32
Speaker 4: get the best outcome for a client. Jack, I've adored this.
43:36
Speaker 4: Thank you so much for joining us today, sharing your wisdom,
43:38
Speaker 4: having a chat about mortgages. We'll ask the community. We'll
43:41
Speaker 4: be like, do you want Jack back? What do we
43:42
Speaker 4: want to know?
43:43
Speaker 2: I do want to add one thing?
43:45
Speaker 4: What is it?
43:46
Speaker 2: Going back to the hot money tip?
43:47
Speaker 4: So okay, sorry, I got more money tips you to
43:50
Speaker 4: get this out? No, I love this, let's go. What
43:52
Speaker 4: is it?
43:52
Speaker 2: You have to have your mortgage rate frequently reviewed. There's
43:56
Speaker 2: so many people out there that it is sitting on
43:58
Speaker 2: high interest rates that haven't had it reviewed and they're
44:01
Speaker 2: just paying thousands of thousands of extra dollars that you
44:04
Speaker 2: just can't get back.
44:05
Speaker 4: How do we do that though? Like when you say frequently,
44:08
Speaker 4: was that even mean?
44:08
Speaker 2: Jack? After you settle, Yeah, I would be sticking in
44:12
Speaker 2: your calendar to sort of follow up with the bank
44:14
Speaker 2: to see if we can bring that interest rate down
44:15
Speaker 2: for you. There's just so many clients, like I said,
44:18
Speaker 2: that come back that are sitting on a high interest rate.
44:21
Speaker 2: It sort of sits in the same category as having
44:24
Speaker 2: your home and contents reviewed or your private health reviewed.
44:27
Speaker 2: It's something that you don't do regularly enough to make
44:30
Speaker 2: sure that you're saving. Something that it's probably worth mentioning
44:33
Speaker 2: is that Zella actually has a dedicated team purely for
44:37
Speaker 2: pricing reviews, So from the moment that you actually settle,
44:40
Speaker 2: we will diroize it for you.
44:42
Speaker 4: Yeah, you don't have to do that, but like this
44:44
Speaker 4: is advice for people who aren't with Zella. Yeah, Like,
44:48
Speaker 4: not all brokers do this, no, because honestly, if they're
44:50
Speaker 4: an individual broker, it's crazy because people go, what type
44:53
Speaker 4: of broker do I want to say? And like, I'm
44:55
Speaker 4: so nasty with this. I love all brokers. I think
44:59
Speaker 4: that they do a great job. But I would never
45:01
Speaker 4: see a broker that works specifically for a bank, because
45:04
Speaker 4: if you're seeing a broker that only works for the bank,
45:06
Speaker 4: that means that they are still a beautiful human being,
45:10
Speaker 4: but they only have access to that bank's products. They can't, like,
45:14
Speaker 4: you know, get you a better rate with a different
45:16
Speaker 4: bank or a credit union or a different lending option.
45:19
Speaker 4: They can't wiggle things in the same way as an
45:22
Speaker 4: independent broker. So we love an independent but then most
45:26
Speaker 4: independent brokers don't have the resources behind them to do
45:30
Speaker 4: pricing reviews because they're always seing brand new clients and
45:32
Speaker 4: building their book and that's fantastic, So you might need
45:35
Speaker 4: to diorize it. And we broke it and be like, hey,
45:37
Speaker 4: can you review my pricing or even just call your
45:40
Speaker 4: own bank and do it yourself. We definitely have it,
45:43
Speaker 4: which is I don't know, big flex Worth Mentioning. Yeah,
45:47
Speaker 4: we have a whole pricing team, but that's because we're
45:50
Speaker 4: a bit of a bigger business. We still have a
45:52
Speaker 4: credit license, but we're not bank aligned. And I think
45:55
Speaker 4: that that's a really important delineation between different brokers. And like,
45:59
Speaker 4: if you're weighing up what you want to do, maybe
46:01
Speaker 4: that's the type of thing you want, but you want
46:03
Speaker 4: to see someone in person in Queensland, like Okay, well
46:05
Speaker 4: you know Zella's is not the one for you. But like,
46:07
Speaker 4: these are things that I would want you to look
46:09
Speaker 4: out for and be aware of because you are building
46:12
Speaker 4: that lifelong relationship and you are putting yourself in a
46:15
Speaker 4: position where you know a broker could help you create
46:18
Speaker 4: your wealth or it could just be a service that
46:21
Speaker 4: you have once off and like I mean, I want
46:23
Speaker 4: to create wealth. I don't know about you, Jack, any
46:27
Speaker 4: other hot tips before I try and wrap you up? No, no, no,
46:30
Speaker 4: we're done. I love that Jack. This has been amazing
46:33
Speaker 4: and I know that the community is going to want
46:35
Speaker 4: to get you back on the show at some point.
46:36
Speaker 4: So if you guys have questions or queries for Jack,
46:38
Speaker 4: shoot them through because I'm just going to collate them
46:40
Speaker 4: all and put together new episodes and then be like, oh,
46:42
Speaker 4: I'm so sorry, Jack, you have to come on the
46:44
Speaker 4: show because, like the people have asked what they're vast for.
46:48
Speaker 4: But with that said, if you guys have found this
46:50
Speaker 4: episode helpful, I would adore it if you shared it
46:52
Speaker 4: with your family and friends who are thinking about purchasing
46:55
Speaker 4: their first home or a home in general. It could
46:58
Speaker 4: be honestly exactly what I need to feel more prepared
47:02
Speaker 4: and more confident in that journey and put themselves in
47:04
Speaker 4: the best possible position to make their property dreams a reality.
47:08
Speaker 4: And guys, do not forget to hit follow and subscribe
47:11
Speaker 4: so that you never miss an episode. It actually helps
47:13
Speaker 4: us grow our podcast so that we can keep bringing
47:16
Speaker 4: you the content that you know and love. My friends,
47:19
Speaker 4: until next time, keep dreaming big, taking small steps in
47:23
Speaker 4: the right direction, and working towards smashing your money goals.
47:26
Speaker 4: My loves see you on Friday. The advice shared on
47:35
Speaker 4: She's on the Money is generally nature and does not
47:37
Speaker 4: consider your individual circumstances. She's on the Money exists purely
47:42
Speaker 4: for educational purposes and should not be relied upon to
47:45
Speaker 4: make an investment or financial decision. If you do choose
47:48
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