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How to Buy Property in 2026: Everything You Need to Know Before Getting a Mortgage · She's On The Money

• 0:00
  Speaker 1: My name is Tatasha Bamblet. I'm a proud First Nations
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  Speaker 1: woman and I'm here to acknowledge country t Glenn Young
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  Speaker 1: Ganya nianar Kaka yah y and beIN Ahaka nian Our
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  Speaker 1: gay In Mbini yakarum Jar dominyamiga Umagahawaka Woman Damon Imlan
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  Speaker 1: Bumba ban Gadabomba in and now in wakah ghan On
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  Speaker 1: yak rum Jar water Nataa. Hello, beautiful friends, we gather
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  Speaker 1: on the lands of the Aboriginal people. We thank, acknowledge
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  Speaker 1: and respect the Abiginal people's land that we're gathering on today.
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  Speaker 1: Take pleasure in all the land and respect all that
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  Speaker 1: you see. She's on the Money podcast acknowledges culture, country,
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  Speaker 1: community and connections, bringing you the tools, knowledge and resources
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  Speaker 1: for you to thrive.
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  Speaker 2: She's on the Money.
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  Speaker 3: She's on the Money.
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  Speaker 4: Hello and welcome to She's on the Money. The podcast
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  Speaker 4: that's all about making your financial dreams become a reality.
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  Speaker 4: And for a lot of us, that's about owning our
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  Speaker 4: own home. And I know a lot of you are
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  Speaker 4: feeling really unsure about what buying a home even looks
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  Speaker 4: like right now. The rules literally keep changing and it's
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  Speaker 4: hard to know if you're doing the right thing, and
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  Speaker 4: you've probably got so many questions, which is like low
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  Speaker 4: key kind of helpful. And I feel like we're in
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  Speaker 4: the right place. And that's why we are here today,
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  Speaker 4: not just me. We are here today because you're in
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  Speaker 4: very good hands with this topic. I'm Victoria Devine and
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  Speaker 4: I happen to own the mortgage broken company, Zella Money,
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  Speaker 4: and I am joined by one of our mortgage queens,
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  Speaker 4: Miss Jacqueline Walsh. Welcome back to the show, Jack.
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  Speaker 3: Thank you.
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  Speaker 4: I am very excited for this because your episodes honestly
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  Speaker 4: pop off like I don't know what you're doing. Are
• 2:00
  Speaker 4: you just sending it to your mum and she's listening
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  Speaker 4: to it over and over and over again. Because they
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  Speaker 4: are very popular, we obviously adore having you in the studio,
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  Speaker 4: and so many of our community are currently on the
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  Speaker 4: journey or have just set the goal of buying their
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  Speaker 4: first home in twenty twenty six or even twenty twenty seven,
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  Speaker 4: and they're on that trajectory of like, well, what does
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  Speaker 4: it look like to buy my first home? Or maybe
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  Speaker 4: they're wanting to add to their portfolio and investment property
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  Speaker 4: so they have a lot of questions for you. Are
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  Speaker 4: you ready? I hope?
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  Speaker 5: So?
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  Speaker 1: All right?
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  Speaker 4: So I went out to the community. I said, Jack's back,
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  Speaker 4: she's coming on the show. What questions have you got?
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  Speaker 4: And this time we did get a few that we've
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  Speaker 4: covered on previous episodes with you. So I want a
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  Speaker 4: flag that I will put all of the episodes that
• 2:43
  Speaker 4: you've been in in the show notes to make sure
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  Speaker 4: that everybody can listen to those, because we don't want
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  Speaker 4: to just create content that doubles up. I mean, it
• 2:50
  Speaker 4: would be more efficient, wouldn't it If we just like
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  Speaker 4: keep pumping out episodes with the same questions, we do
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  Speaker 4: so much less work. And we basically did a whole
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  Speaker 4: refinancing masterclass. I'd say historically that was the most recent
• 3:01
  Speaker 4: one that we dropped. Obviously that will be in their
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  Speaker 4: show notes too, for those of you who want to
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  Speaker 4: know all about refinancing. Now, Jack, you are a very
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  Speaker 4: busy woman, and since last year, I would say that
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  Speaker 4: the mortgage breaking world has changed significantly. Like we yell
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  Speaker 4: about it a lot in the office. Yea, maybe we swear,
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  Speaker 4: but like we're very classy women, we would never So
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  Speaker 4: along with getting to the community's questions, I just want
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  Speaker 4: to speak about the changes that you've been seeing as well,
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  Speaker 4: just so our community can be really prepared. So let's
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  Speaker 4: start with I guess the biggest headline over the last
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  Speaker 4: twelve months, and that is spicy the government's five percent
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  Speaker 4: deposit rule. Yes, people have questions, people have opinions, people
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  Speaker 4: are nervous. What's changed.
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  Speaker 2: So since October one, twenty twenty five, the government has
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  Speaker 2: scrapped the income threshold, which is a major change, meaning
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  Speaker 2: that anyone that's purchasing their first property now can go
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  Speaker 2: through this scheme. Obviously, the normal rules apply being an
• 4:00
  Speaker 2: austraiance is and or permanent resident.
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  Speaker 3: You still need to hold the minimum of five percent.
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  Speaker 2: Of the purchase price, but it just means that more
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  Speaker 2: people can go into that scheme now with having a
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  Speaker 2: little deposit and avoiding the lenders more insurance. So it
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  Speaker 2: is a big, big, big change meaning a lot more
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  Speaker 2: people are eligible for this. And another big change I
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  Speaker 2: guess would be the property price cap threshold. So Victoria's
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  Speaker 2: gone from eight hundred to nine hundred, whereas the biggest
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  Speaker 2: jumps probably in Sydney at nine hundred to one point
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  Speaker 2: five MILS. So that was that was still like I
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  Speaker 2: thought that was diaboling, but it probably really needed to
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  Speaker 2: happen a long time ago.
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  Speaker 4: And I would argue that Melbourne didn't get enough agreed,
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  Speaker 4: Like we look at the Melbourne property prices and what
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  Speaker 4: our clients are buying for and how we're trying to
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  Speaker 4: make it happen, and like honestly in the nicest, most
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  Speaker 4: relatable way, because I know that a lot of people
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  Speaker 4: are listening to this and they're like, Victoria, I can't
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  Speaker 4: service the nine hundred thousand dollar mortgage to begin with.
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  Speaker 4: Like when we look at the average, the average property
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  Speaker 4: price in Melbourne is more than a million dollars, and
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  Speaker 4: you're saying that the average isn't the first home buyers, Like,
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  Speaker 4: what's that about? And I think there's a lot of
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  Speaker 4: fear that has come up around this, and as of
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  Speaker 4: October that popped up. And obviously it was announced before
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  Speaker 4: it happened, and we had all of our clients asking
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  Speaker 4: a million questions and then all of our clients seeing
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  Speaker 4: it the way that we saw it, I know, so
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  Speaker 4: we saw it as great. For a short period of time,
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  Speaker 4: probably the month or two after this initiative gets implemented,
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  Speaker 4: a whole heap of first home buyers are going to
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  Speaker 4: enter the market with five percent and be able to
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  Speaker 4: buy properties that are on par with what the price
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  Speaker 4: of them was. Now everyone settled in, they've worked out
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  Speaker 4: what they're five percent is. They're competing with the people
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  Speaker 4: that had twenty percent, and what that's doing is just
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  Speaker 4: driving house prices up. And that's why I said, oh,
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  Speaker 4: people have opinions. We are one of those peoples, and
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  Speaker 4: I think it's making people really nervous and there's I
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  Speaker 4: think still a lot of fear around what this particular
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  Speaker 4: scheme means for you know, you as a first home
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  Speaker 4: buyer moving into the market in twenty twenty six, or
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  Speaker 4: you saving your first deposit now going well by twenty
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  Speaker 4: twenty seven, is this going to be completely unobtainable? Do
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  Speaker 4: you think that this fear is really valid or not valid?
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  Speaker 3: There is a lot of fear out there, definitely that's undeniable.
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  Speaker 2: We have, you know, clients that are worried that they're
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  Speaker 2: going to miss out on properties or worried about being
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  Speaker 2: outbit at auctions, which it is happening. Like to eliminate
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  Speaker 2: the fear, it's going to come down to getting in
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  Speaker 2: touch with your bank or broker as soon as possible
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  Speaker 2: and being on the same page, really like, are we
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  Speaker 2: looking at obtaining a pre approval for you absolute maximum,
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  Speaker 2: knowing that we don't really want to go up to that,
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  Speaker 2: but at least you, you know, if you find the property,
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  Speaker 2: you can go in a little bit higher and we
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  Speaker 2: don't need to go that back and forth and you know,
• 6:53
  Speaker 2: take longer and getting back to you. Or are you
• 6:55
  Speaker 2: wanting to stick with a budget just going at one
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  Speaker 2: purchase price and then just call it a day.
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  Speaker 3: If you're going to put a I.
• 7:03
  Speaker 2: Guess your own budget on that purchase price, you probably
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  Speaker 2: really need to be looking at a lower purchase price
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  Speaker 2: when you're doing your searches, just so it is giving
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  Speaker 2: you that little bit of a wiggle room that you
• 7:14
  Speaker 2: can go in a little bit over what the advertised
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  Speaker 2: prices are because there is so much competitiveness.
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  Speaker 4: Now, Yeah, and I'm not saying it's right. There's a
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  Speaker 4: lot of conversation I'd like to have about the real
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  Speaker 4: estate industry as a whole, and we can have that
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  Speaker 4: conversation another time, because I've got thoughts and feelings that
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  Speaker 4: would make a lot of people very mad. But I
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  Speaker 4: also think and I've said this on the podcast before.
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  Speaker 4: One of my favorite tips when looking for your first
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  Speaker 4: home is to stop looking for your first home and
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  Speaker 4: start clicking on the soul tab on domain on a
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  Speaker 4: real estate because if you start looking for your first
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  Speaker 4: home one we get an emotional connection to these properties
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  Speaker 4: really quickly. Really might see it's listed between nine hundred
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  Speaker 4: or let's you know, use the scheme barriers, maybe listed
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  Speaker 4: between seven fifteen and eight to fifteen, and you go, well,
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  Speaker 4: I could absolutely afford that even if I went top
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  Speaker 4: and I go eight point fifty. The reality is that
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  Speaker 4: property is probably going to go over, not because it's
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  Speaker 4: not valued at that amount, but because the competition for
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  Speaker 4: that property is so fierce and there are other first
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  Speaker 4: home buyers that are willing to use their whole nine
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  Speaker 4: hundred thousand dollars in Melbourne or their whole one point
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  Speaker 4: five million dollars in Sydney, and that's where your competition's
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  Speaker 4: going to come from, because they're like, well, I can
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  Speaker 4: outbid them, and they do and that forces competition. So there,
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  Speaker 4: I mean, there are definitely cases of real estate agents
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  Speaker 4: under quoting things. But the best thing you can do
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  Speaker 4: before you even start looking for your dream home is
• 8:36
  Speaker 4: to go to the real estate dot com dot au
• 8:38
  Speaker 4: website and click on sold same with domain and just
• 8:41
  Speaker 4: look at what are these properties actually going for because
• 8:45
  Speaker 4: you'll see the listed sale prices and then you can
• 8:48
  Speaker 4: gain an expectation of like, Okay, so I thought I
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  Speaker 4: could afford a three bedroom filler and it actually looks
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  Speaker 4: like they're selling for X. What does that look like?
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  Speaker 4: And set your budget expectation from that, and then we
• 9:01
  Speaker 4: go shopping on the flip side, so that when you
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  Speaker 4: start seeing properties listed, you go eight fifty money win,
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  Speaker 4: like that's going to work for my personal situation. You
• 9:09
  Speaker 4: can go actually in that area, I'm watching all of
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  Speaker 4: these other properties go for one hundred grand overver, so
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  Speaker 4: you can kind of set your own expectations because I'm
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  Speaker 4: finding that a lot of people who are not doing that.
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  Speaker 4: It's so exciting, it really is. You're going to auctions
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  Speaker 4: like you're putting offers on houses and it happens again
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  Speaker 4: and again and again, and you get outbit and you
• 9:30
  Speaker 4: feel like it's fruitless. We actually needed to set more
• 9:33
  Speaker 4: realistic expectations from the start, and that hurts to hear
• 9:36
  Speaker 4: because you're like, well, it should sell for between what
• 9:39
  Speaker 4: it's listed for that is just not the reality of
• 9:42
  Speaker 4: the industry at this point in time, and that is
• 9:45
  Speaker 4: heartbreaking and frustrating. But if you want to get into
• 9:48
  Speaker 4: the market, that's the advice that you need.
• 9:50
  Speaker 3: Of course.
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  Speaker 4: Yeah, so we need to be a little bit blunt
• 9:52
  Speaker 4: and be like, cool, don't look at that, look at this,
• 9:55
  Speaker 4: or hey, set your expectation here, and if we go over,
• 9:58
  Speaker 4: you've got a little bit of wiggle room money win
• 10:00
  Speaker 4: exactly because I know as well clients who have been like, oh, yeah,
• 10:05
  Speaker 4: I stopped bidding because we'd set this personal budget of
• 10:09
  Speaker 4: eight twenty five and we stopped there, and you go,
• 10:13
  Speaker 4: you were pre approved up to eight fifty. Like you
• 10:15
  Speaker 4: totally had had it, you had that wiggle room. You
• 10:17
  Speaker 4: didn't want to do it. I totally get that, But
• 10:19
  Speaker 4: now you're regretting it because you're coming back to me
• 10:22
  Speaker 4: and going the market's moved again, it's gone up again.
• 10:24
  Speaker 4: Why didn't I just offer eight fifty? And it can
• 10:27
  Speaker 4: be really hard, but that's where you need a good
• 10:29
  Speaker 4: relationship with your mortgage broker, so you can have these
• 10:32
  Speaker 4: conversations of like is that reasonable? Should I go over?
• 10:34
  Speaker 4: Should I not? What does this look like? Because I
• 10:37
  Speaker 4: think so many of us, and this is me ranting
• 10:38
  Speaker 4: about property. I'm sorry, I think so many of us
• 10:41
  Speaker 4: get stuck on what that listing price is and go, well,
• 10:44
  Speaker 4: the top end was eight fifty. It can't be worth
• 10:46
  Speaker 4: more than that, and market determines what it's worth, not
• 10:49
  Speaker 4: the real estate's valuation. Unfortunately, So back to the five
• 10:54
  Speaker 4: percent rule. Because I could talk about real estate or
• 10:57
  Speaker 4: dag chat. I know you could too. What does that
• 11:00
  Speaker 4: mean for everything else that's available for first home buyers? Like,
• 11:04
  Speaker 4: can you stack the five percent rule with like the
• 11:06
  Speaker 4: first home owners grants? Do they cancel each other out?
• 11:10
  Speaker 4: How does it all fit together? Like a puzzle?
• 11:13
  Speaker 3: You can use them all together.
• 11:16
  Speaker 2: So, for instance, you could be using the first Home
• 11:19
  Speaker 2: Super Saver scheme with the five percent deposit scheme and
• 11:23
  Speaker 2: even obtain the first home owners grant.
• 11:25
  Speaker 3: So that's three stacked together.
• 11:27
  Speaker 4: That's obviously at Home super Saviors scheme. Do it?
• 11:30
  Speaker 5: Yes?
• 11:31
  Speaker 4: Oh, I can't give advice, No, consider whether it is
• 11:34
  Speaker 4: relevant for your seconds.
• 11:36
  Speaker 3: You could stack all those together.
• 11:37
  Speaker 2: Obviously, that particular scenario would be for an unoccupied purchase
• 11:41
  Speaker 2: that you're going to be living in, and it would
• 11:43
  Speaker 2: need to be a newly built dwelling or an off
• 11:45
  Speaker 2: the plan purchase to obtain that first Home owners grant.
• 11:49
  Speaker 2: But the most common woman that we would see would
• 11:51
  Speaker 2: be the first Home Guarantee scheme, which is now called
• 11:53
  Speaker 2: the five percent Deposit Scheme, along with the First Home
• 11:56
  Speaker 2: super Saviors scheme.
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  Speaker 3: So yes, you can stack them. I love that.
• 12:00
  Speaker 4: So we're like not just habit stacking, we are mortgage
• 12:03
  Speaker 4: like scheme stack here, which is very sexy.
• 12:05
  Speaker 3: Are the Merrier?
• 12:06
  Speaker 4: Yeah, you were on the pod last year? What else
• 12:09
  Speaker 4: has changed since you were last in the studio. Because
• 12:12
  Speaker 4: you're the one dealing with the banks every day, I
• 12:14
  Speaker 4: just get to sit and listen to you argue on
• 12:16
  Speaker 4: the phone, which is it's really I mean, I do
• 12:20
  Speaker 4: have to get involved when like they're not listening and
• 12:22
  Speaker 4: agree hell those no no no no no, and they go,
• 12:25
  Speaker 4: oh shit, she's got a title Like it's not even
• 12:27
  Speaker 4: because I know more I don't. But you see this
• 12:31
  Speaker 4: stuff every single day, and it's the stuff that most
• 12:34
  Speaker 4: people don't see. What changes are you seeing within the
• 12:37
  Speaker 4: banks themselves?
• 12:39
  Speaker 3: I feel like this deserves an iyrol And I feel like.
• 12:41
  Speaker 4: You probably the banks are going to come for you.
• 12:43
  Speaker 2: You probably not are going to say I stacked this
• 12:47
  Speaker 2: banks turnaround times. This is infuriating, furiating and is at
• 12:53
  Speaker 2: an all time high, and it's just crazy at the moment.
• 12:58
  Speaker 2: So yeah, that's probably been the biggest change i'd say
• 13:02
  Speaker 2: in the last few months around banks ten around times.
• 13:05
  Speaker 2: Some banks are at sixteen to twenty one days.
• 13:07
  Speaker 4: That's astronomical.
• 13:09
  Speaker 3: Yeah, unheard of actually for an assessment from.
• 13:12
  Speaker 4: My perspective, unacceptable as well.
• 13:15
  Speaker 2: And you've got to think as well, like that's the
• 13:17
  Speaker 2: banks turnaround times. The broker also needs time to you know,
• 13:20
  Speaker 2: package that application, get all your documents, submit it, like,
• 13:24
  Speaker 2: get it ready for assessment, and so that's not the
• 13:26
  Speaker 2: work we do. Yeah, so that's like that's the banks
• 13:29
  Speaker 2: turn around times plus your broker's turn around times as well.
• 13:32
  Speaker 3: So they are through the roof at the moment.
• 13:36
  Speaker 2: I do see that they are trying to combat that
• 13:39
  Speaker 2: turnaround time with now the changes of bringing some banks
• 13:43
  Speaker 2: bringing in the auto assessed pre approvals.
• 13:46
  Speaker 4: So I don't like that. Yeah, my personally to hire
• 13:50
  Speaker 4: more staff to do more thorough reviews.
• 13:53
  Speaker 2: I don't know if you heard me in the office
• 13:54
  Speaker 2: this week, but I called a few banks and said,
• 13:56
  Speaker 2: but why don't you just hire more stuff like, just
• 13:59
  Speaker 2: so that you can.
• 14:00
  Speaker 4: Actually do the work in the time frame that you promised,
• 14:03
  Speaker 4: because these turnaround times. Just having a bitch about our
• 14:06
  Speaker 4: own industry, these turnaround times are not the turnaround times
• 14:09
  Speaker 4: they promise us, No, they're the reality. They will say, oh, yeah,
• 14:12
  Speaker 4: like we have a history of getting back to clients
• 14:15
  Speaker 4: within the first seven days, and you go, that's so sexy.
• 14:17
  Speaker 4: No worries, I'll tell my client that. And then the
• 14:20
  Speaker 4: reality is it pushes out to sixteen days, which then
• 14:23
  Speaker 4: makes us look incompetent because we're going back to clients
• 14:25
  Speaker 4: being like, hey, we know this should be coming through
• 14:27
  Speaker 4: tomorrow based on the bank's timeframes, but we're not seeing
• 14:30
  Speaker 4: this happen with other clients, so we want to set
• 14:32
  Speaker 4: your expectations here and they're like, oh, no worries. Then
• 14:35
  Speaker 4: when it doesn't happen, they're like, but the bank said.
• 14:37
  Speaker 4: And I think so many of us get hung up
• 14:39
  Speaker 4: on the fact that, well, banks, they're big authorities, why
• 14:43
  Speaker 4: would they.
• 14:43
  Speaker 2: Lie, And we're the middleman, And unfortunately they make the
• 14:48
  Speaker 2: rules and they can change those turnaround times every single day.
• 14:52
  Speaker 2: So it's based on the influx of applications to be
• 14:54
  Speaker 2: coming in. So one day, it could be four days.
• 14:57
  Speaker 2: The next day it could be sixteen days.
• 15:00
  Speaker 4: October last year, when that five percent deposits game came in,
• 15:04
  Speaker 4: I feel like every first home buyer and their dog
• 15:07
  Speaker 4: wants to get their pre approval sorted asap, which is
• 15:10
  Speaker 4: meant that people who were on their journey of saving
• 15:13
  Speaker 4: for their first home and they were saving and they
• 15:16
  Speaker 4: maybe were trying to get to ten percent to use LMI,
• 15:18
  Speaker 4: or maybe they were trying to get to their twenty percent,
• 15:21
  Speaker 4: who thought, oh, this is probably still another twelve to
• 15:23
  Speaker 4: eighteen months off, Like we've got heaps of time. That
• 15:26
  Speaker 4: actually changed for them and they're in the market as
• 15:28
  Speaker 4: of today because they already have their five percent, they
• 15:31
  Speaker 4: are now competing with the other clients that we have
• 15:33
  Speaker 4: who have twenty percent deposits. And that doesn't change anything
• 15:36
  Speaker 4: about you know, them being in a better off or
• 15:39
  Speaker 4: worse off position, but it doubles our applications, which as
• 15:42
  Speaker 4: a business fantastic. We want more clients, We want more
• 15:45
  Speaker 4: of you pre approved. But that means the banks are
• 15:47
  Speaker 4: overloaded with people going, oh, I actually you know can
• 15:51
  Speaker 4: get this early. Yes, And so now all of those
• 15:54
  Speaker 4: people who can get in early are now overloading the banks.
• 15:56
  Speaker 2: Yes, it's not even just an influx from the five
• 15:59
  Speaker 2: percent scheme. It's also just an influx for clients looking
• 16:03
  Speaker 2: at preapproval even outside of that scheme, just the way
• 16:06
  Speaker 2: that the market is going at the moment. So it's
• 16:08
  Speaker 2: just the spring is always notorious for, you know, the
• 16:13
  Speaker 2: busiest time of the year with houses going on the market.
• 16:16
  Speaker 2: So it just happens that they've started this on October
• 16:18
  Speaker 2: first last year and now it's rolling into the business perience.
• 16:21
  Speaker 4: I was okey, like, are you guys kidding? Like do
• 16:25
  Speaker 4: this at the start of winter. You and I both know,
• 16:28
  Speaker 4: just do it again, and that would have made sense.
• 16:30
  Speaker 4: I don't think anyone would have been like, oh, that
• 16:33
  Speaker 4: timing doesn't make sense because it's a new financial year,
• 16:35
  Speaker 4: new financial policy. Like we would have eaten that up
• 16:38
  Speaker 4: and believed it in a time that's a little bit
• 16:40
  Speaker 4: more quiet. Yeah, you are setting everyone up for failure.
• 16:43
  Speaker 2: Government to combat this, I would be saying to speak
• 16:47
  Speaker 2: with your broker around what it is that you're trying
• 16:49
  Speaker 2: to achieve, because yes, there's going to be you know,
• 16:53
  Speaker 2: some banks that are grid locked, and some banks have
• 16:55
  Speaker 2: a longer turnaround time. But if you're not planning on
• 16:58
  Speaker 2: going to an auction, or you're an eighty percent land
• 17:01
  Speaker 2: and you've got a twenty percent depositor, whatever your scenario is,
• 17:05
  Speaker 2: we can go through different banks that still like some
• 17:07
  Speaker 2: banks still have like a four hour turnaround, but that's
• 17:10
  Speaker 2: not within the scheme. So it just comes down to
• 17:12
  Speaker 2: your personal scenario and where we can place you. But
• 17:15
  Speaker 2: that's why, more so than ever, a broker is going
• 17:19
  Speaker 2: to be your best bet to go to because they're
• 17:21
  Speaker 2: the ones that can see across the board and sort
• 17:23
  Speaker 2: of pinpoint and work out where to park your application.
• 17:27
  Speaker 2: Whereas if you walk into a bank, it's sorry, we're
• 17:29
  Speaker 2: at sixteen days. Therefore, that auction that you wanted to
• 17:32
  Speaker 2: go to next.
• 17:32
  Speaker 3: Week going to with pre not going to Had you
• 17:35
  Speaker 3: gone to a broker, we could have gone through option A,
• 17:38
  Speaker 3: B and C.
• 17:39
  Speaker 2: This is our first option. Our fullback option is now
• 17:42
  Speaker 2: option B. Let's get you the pre approval in place
• 17:45
  Speaker 2: to go to that auction next week, and then let's
• 17:47
  Speaker 2: talk if you're successful.
• 17:48
  Speaker 4: Yeah, and other banks aren't going to like carrying this,
• 17:52
  Speaker 4: but this is just the way that we put our
• 17:54
  Speaker 4: clients in the best possible position, right, and the best
• 17:57
  Speaker 4: possible position for you as a client is to come
• 17:59
  Speaker 4: to us before you're planning to go to an auction,
• 18:01
  Speaker 4: before you find your dream home. Maybe you've got your
• 18:03
  Speaker 4: deposit and you're like, oh, well, i'll just see how
• 18:06
  Speaker 4: I go and I'll talk to a broker if something
• 18:07
  Speaker 4: comes up, Like at that point, if you've started shopping,
• 18:11
  Speaker 4: see a broker. Already get your pre approval in the bank,
• 18:13
  Speaker 4: so that if your dream property does come up and
• 18:16
  Speaker 4: they're like, oh, auction Saturday, you're prepared. But the thing
• 18:20
  Speaker 4: that we do as well is and I want to
• 18:22
  Speaker 4: say unfortunately, but like fortunately, like we thrive under pressure,
• 18:26
  Speaker 4: but also we know that you stress under pressure, so
• 18:29
  Speaker 4: like we don't want this situation. But we have so
• 18:32
  Speaker 4: many clients who come to us and go, I need
• 18:33
  Speaker 4: an urgent appointment with a mortgage broker because I found
• 18:36
  Speaker 4: my dream house and it's going to auction on Saturday.
• 18:38
  Speaker 4: And that's where you jack. You know, you're talking about
• 18:41
  Speaker 4: option A, B and C. What that might look like
• 18:43
  Speaker 4: is your priority bank is Combank, and you might say
• 18:46
  Speaker 4: I really want to be with Combank. That you and
• 18:47
  Speaker 4: I go great, their turnaround time right now is completely
• 18:50
  Speaker 4: pushed out. There's absolutely no chance that we can get
• 18:53
  Speaker 4: an application in and pre approval for you to be
• 18:55
  Speaker 4: comfortable to go to auction. Here's this I don't know
• 18:59
  Speaker 4: Second and Bank. Yes, their interest rate is higher, but
• 19:03
  Speaker 4: all of their assessment criteria is very similar to Combank.
• 19:06
  Speaker 4: They have a four hour turnaround. We can get you
• 19:09
  Speaker 4: that pre approval, you can go shopping. We know that
• 19:12
  Speaker 4: if you are successful at that auction, this Second Rate
• 19:15
  Speaker 4: Bank is going to give you the loan. But during
• 19:17
  Speaker 4: that settlement period and that period of time between you
• 19:21
  Speaker 4: and actually getting the keys and having to pay the money,
• 19:24
  Speaker 4: we'll go back to Combank. We will process that in
• 19:27
  Speaker 4: a longer period of time, will get you the loan
• 19:29
  Speaker 4: that you want and everything will be shiny. But one
• 19:33
  Speaker 4: of the things that I just I cannot stress enough
• 19:36
  Speaker 4: is please do not ever go to auction, especially in
• 19:39
  Speaker 4: such a changing market and changing world in finance and
• 19:44
  Speaker 4: bid without pre approval.
• 19:46
  Speaker 2: Now, you absolutely have to have a pre approval if
• 19:48
  Speaker 2: you're even considering going to auction. Yeah, but that's why
• 19:51
  Speaker 2: I always say the second that you're even thinking, like
• 19:54
  Speaker 2: I've said this before, the second that you're even thinking
• 19:56
  Speaker 2: about purchasing, get in touch with a broker, because if
• 19:58
  Speaker 2: you have time on your side. It eliminates the stress
• 20:02
  Speaker 2: on both ends, Like you don't need to be following
• 20:04
  Speaker 2: us up because your stress, We don't need to be
• 20:06
  Speaker 2: chasing you up for documents. We have that leeway for
• 20:09
  Speaker 2: it to things to take a little bit longer, and
• 20:11
  Speaker 2: with the ever changing market of the turnaround times, that's
• 20:14
  Speaker 2: not going to be an issue if we are ready
• 20:16
  Speaker 2: to go with enough time.
• 20:17
  Speaker 4: So exactly, yeah, exactly. So just if any banks were
• 20:21
  Speaker 4: listening to that, and you've seen us withdraw applications, it's
• 20:25
  Speaker 4: just it's not you. It's anyway, Jack, I want to
• 20:30
  Speaker 4: take a quick break so that we don't keep us
• 20:33
  Speaker 4: looking about banks, and then we can get into things
• 20:37
  Speaker 4: like using equity, what a Garran Torelowan is going to
• 20:40
  Speaker 4: look like? And I really want to know the tips
• 20:42
  Speaker 4: that you have to reduce the life of a mortgage,
• 20:44
  Speaker 4: so guys don't go anywhere. All right, Jack, we are back.
• 20:51
  Speaker 4: Let's talk about equity, because this came up more than
• 20:55
  Speaker 4: anything else. I feel like it can be a really
• 20:58
  Speaker 4: confusing concept, like I've got equity, what part of my
• 21:01
  Speaker 4: equity can I use? Can I use my equity for this,
• 21:04
  Speaker 4: that or the other? And because there were so many questions.
• 21:08
  Speaker 4: And Jacqueline doesn't know this yet, but I am going
• 21:10
  Speaker 4: to make her come back on the show and do
• 21:12
  Speaker 4: a whole episode on the who, why, when, or how
• 21:16
  Speaker 4: of equity because it can be confusing, but I promise
• 21:19
  Speaker 4: it's not. And so many people are unaware of what
• 21:22
  Speaker 4: you can use your equity for, so like, it's not
• 21:25
  Speaker 4: just property purchases, like, and I'm not endorsing this, but
• 21:30
  Speaker 4: you can use it for business loans, you can use
• 21:32
  Speaker 4: it for a car, you can use it for a caravan,
• 21:34
  Speaker 4: you could use it for literally anything. But I would
• 21:38
  Speaker 4: like you to consider wealth creation as your primary But
• 21:42
  Speaker 4: for now, let's just touch on what most of the
• 21:45
  Speaker 4: questions were about. Jack. Can you explain how to use
• 21:50
  Speaker 4: equity to buy another property? And how does that actually work?
• 21:54
  Speaker 4: So I own a property, got some equity in it?
• 21:58
  Speaker 4: What do I do if I wanted to buy another house?
• 22:01
  Speaker 2: Okay, So to explain it, you are essentially drawing on
• 22:07
  Speaker 2: the equity in your existing property. Now the equity, I
• 22:11
  Speaker 2: guess there's a bit of a misconception that people think, well, Okay,
• 22:14
  Speaker 2: my ALVR, my loan to value ratio is only sitting
• 22:16
  Speaker 2: at sixty percent. Therefore, I've got forty percent of equity.
• 22:19
  Speaker 2: No no, no, no, you technically do no no mean
• 22:23
  Speaker 2: it's yours.
• 22:24
  Speaker 4: Yes.
• 22:24
  Speaker 3: However, like if you sold the house, what you would
• 22:27
  Speaker 3: get correct, This is correct. If you sold the house,
• 22:30
  Speaker 3: you will walk away with that.
• 22:31
  Speaker 4: That's the casholder that you would walk away by the.
• 22:32
  Speaker 2: Ideas, that's what you own. That's the difference between your
• 22:35
  Speaker 2: property value and what the loan is owing.
• 22:38
  Speaker 4: But that's not what the bank's like to see because
• 22:39
  Speaker 4: their conservative ray need to cover their own butts before
• 22:42
  Speaker 4: helping you.
• 22:43
  Speaker 3: Correct.
• 22:43
  Speaker 2: So the bank will allow you to draw up to
• 22:45
  Speaker 2: an eighty percent alvir so loan to value ratio, which
• 22:49
  Speaker 2: means in this instance, if your loan was at sixty
• 22:52
  Speaker 2: percent already that means and drawing it up to eighty percent,
• 22:54
  Speaker 2: that means we've got twenty percent equity that we can
• 22:57
  Speaker 2: now pull out and use towards a newer purchase. We
• 23:01
  Speaker 2: can obviously go over that eighty percent if need be.
• 23:03
  Speaker 2: We can't go up to one hundred percent, but we
• 23:05
  Speaker 2: can go above eighty percent and be a little bit flexy, well.
• 23:07
  Speaker 4: A little bit sometimes. But you've got to think, and
• 23:10
  Speaker 4: this is the way that I've always explained it to clients.
• 23:13
  Speaker 4: The bank always wants to see you kind of still quote,
• 23:16
  Speaker 4: have the deposits sitting against the mortgage. Yes, So that's
• 23:20
  Speaker 4: why that twenty percent is there. And it's not saying, oh,
• 23:24
  Speaker 4: that twenty percent is what you bought for, because you
• 23:26
  Speaker 4: might have bought for ten percent with LVR, or you
• 23:28
  Speaker 4: might have bought for five percent and gone through a scheme.
• 23:32
  Speaker 4: But they like to be conservative, so they love to
• 23:35
  Speaker 4: see the twenty percent number, and that's where we usually sit.
• 23:38
  Speaker 2: Yeah, they deem it as less risky in their eyes
• 23:40
  Speaker 2: if they can sit the LVR at eighty percent. So,
• 23:43
  Speaker 2: like I said, you can draw above an eighty percent OLVR,
• 23:45
  Speaker 2: but that's when you're deemed as a higher risk and
• 23:47
  Speaker 2: they will in some cases charge lenders Morgan insurance to
• 23:50
  Speaker 2: do that. So going back to it, if we were
• 23:53
  Speaker 2: to draw out, say the twenty percent equity from sixty
• 23:56
  Speaker 2: up to eighty and we use that for the new purchase,
• 23:58
  Speaker 2: there's two ways that you can and structure it. You
• 24:01
  Speaker 2: can obviously put both the existing property and the new
• 24:04
  Speaker 2: purchase securities against both loans, or you can just draw
• 24:09
  Speaker 2: out I like to say, so take out those funds
• 24:11
  Speaker 2: from the existing property in a separate loan and use
• 24:14
  Speaker 2: those towards the deposit of the new property. So you
• 24:17
  Speaker 2: would have, say, on the new purchase alone up to
• 24:20
  Speaker 2: eighty percent on that property, and then the additional amount
• 24:23
  Speaker 2: that you're putting down towards that pursase would come from
• 24:25
  Speaker 2: the equity in your existing property.
• 24:27
  Speaker 4: Yeah, so you're basically like left pocket, right pocket, and
• 24:31
  Speaker 4: it's not a pretend deposit, it's real money. But the
• 24:33
  Speaker 4: bank is never gp back and fortunately, yeah, but the
• 24:36
  Speaker 4: bank is never going to go, yeah, draw down twenty percent,
• 24:38
  Speaker 4: here's the cash, go shopping, Like, there has to be
• 24:41
  Speaker 4: an agreement in place where the equity has been drawn
• 24:44
  Speaker 4: down and that will actually just go straight to the
• 24:46
  Speaker 4: other one. So you could, in theory and not in theory,
• 24:49
  Speaker 4: in reality, you could have your first home, have the
• 24:52
  Speaker 4: exact circumstances Jack has just outlined, and not have to
• 24:56
  Speaker 4: save another dollar to get into your next house because well,
• 25:00
  Speaker 4: your equity increased over time and that's your deposit. So
• 25:04
  Speaker 4: we are drawing a deposit from your first house giving
• 25:06
  Speaker 4: it to the next house. And honestly, that's how people
• 25:09
  Speaker 4: create property portfolios where over time, great first one has
• 25:13
  Speaker 4: equity drawn down, second one no worries. Wait a few
• 25:17
  Speaker 4: years until that's got equity and we can use that
• 25:19
  Speaker 4: property to get into our next property. And does become
• 25:22
  Speaker 4: a complicated web because there's obviously things you might want
• 25:25
  Speaker 4: to refinance and change or pay down some of the equity,
• 25:28
  Speaker 4: and like there's just a lot that your broker can
• 25:30
  Speaker 4: take you through. But in theory, it's kind of like
• 25:33
  Speaker 4: a chain correct and that's exciting. Yep, And I think
• 25:36
  Speaker 4: it's really fun. Now I'm going to stop talking about
• 25:40
  Speaker 4: equity because I already promised the community that I've been
• 25:42
  Speaker 4: a whole episode on it, and I honestly, I just
• 25:44
  Speaker 4: think equity is so sexy, Like, oh my goodness, can
• 25:48
  Speaker 4: we talk about garran toor loans for a hot second,
• 25:50
  Speaker 4: because I feel like they're are they dirty words still
• 25:53
  Speaker 4: in mortgage broking? Not to us, but like so many
• 25:57
  Speaker 4: people on TikTok and so many people on instagrammling everyone
• 26:00
  Speaker 4: had a guarant torlan or like they'll be like, oh,
• 26:03
  Speaker 4: Jacqueline bought her first house, and this isn't jack situation
• 26:06
  Speaker 4: saying her name Jacqueline bought her first house, and I
• 26:08
  Speaker 4: found out that she actually didn't save any of her
• 26:11
  Speaker 4: deposits she just got a garan torlon from her parents,
• 26:15
  Speaker 4: as though you're not servicing a full US mortgage on
• 26:17
  Speaker 4: your own. Like, sit down anyway. One of the most
• 26:22
  Speaker 4: popular topics in our community is garan torloan's, especially when
• 26:26
  Speaker 4: it comes to what's the look like? How when? Where?
• 26:29
  Speaker 4: Can you just quickly explain what a garan torlon is
• 26:31
  Speaker 4: to us?
• 26:32
  Speaker 2: Yes, So having a guaranteur is essentially taking the guaranteur's
• 26:37
  Speaker 2: property and using that as additional security on your purchase
• 26:42
  Speaker 2: your loan to avoid lender's Morgan insurance. I guess this
• 26:46
  Speaker 2: is for anyone that's above an eighty percent LVR so
• 26:49
  Speaker 2: loan to value ratio to avoid that alumai charge and
• 26:54
  Speaker 2: again the bank deeming you is less risk.
• 26:56
  Speaker 4: So let's just say I'm buying my first home and
• 27:00
  Speaker 4: I want to use my parents' property. The bank is
• 27:03
  Speaker 4: going to look or I want to use my parents
• 27:04
  Speaker 4: as guarantee. The bank's going to look at them.
• 27:06
  Speaker 2: Though.
• 27:07
  Speaker 4: They have to have equity, don't they. They can't have
• 27:10
  Speaker 4: just a property and it's like a brand new mortgage
• 27:12
  Speaker 4: and they go, oh, well, guarantora, just sign us up,
• 27:15
  Speaker 4: like they have to have equity in their property and
• 27:18
  Speaker 4: it's a bit different to using your own equity, where
• 27:21
  Speaker 4: the equity never actually gets taken out of your mum
• 27:23
  Speaker 4: and dad's loan. And I say mum and dad because
• 27:25
  Speaker 4: that's the most popular guaranteur system. In fact, it's probably
• 27:29
  Speaker 4: one of the only ones we really see. They don't
• 27:32
  Speaker 4: take the money out of your mum and dad's mortgage.
• 27:34
  Speaker 4: They just put what's called a caveat over the property
• 27:37
  Speaker 4: to say, if they sell, part of this was actually
• 27:39
  Speaker 4: the deposit for this house over there. So that's the
• 27:42
  Speaker 4: way it limits people. But for a lot of parents,
• 27:45
  Speaker 4: they're not planning on selling, they're not planning on doing anything.
• 27:47
  Speaker 4: They're like, I'd love to give my kids a guarantee
• 27:50
  Speaker 4: loan to get them into property sooner without impacting you financially.
• 27:56
  Speaker 4: We have had situations where parents and like it must
• 27:58
  Speaker 4: be nice, but parents come to us with their child
• 28:01
  Speaker 4: and say, I want to help them get into property.
• 28:02
  Speaker 4: I've got a deposit saved for them, and we backflip
• 28:05
  Speaker 4: and go, that's so nice. Can we actually just use
• 28:07
  Speaker 4: the equity and your property and you put that cash
• 28:11
  Speaker 4: into the share market or you put that cash against
• 28:13
  Speaker 4: your own mortgage, because it comes out in the wash
• 28:17
  Speaker 4: like you're in a better everyone's in a better circumstance
• 28:20
  Speaker 4: because of that. I feel like it's a little bit
• 28:22
  Speaker 4: taboo still, and it really frustrates me because people think, oh, well,
• 28:27
  Speaker 4: you're getting a leg up when I can't.
• 28:29
  Speaker 3: It's so common, it's more, it's much more common than
• 28:32
  Speaker 3: people think, and.
• 28:33
  Speaker 4: It's not just common. Like I'm really sorry, but now
• 28:37
  Speaker 4: i'm a parent, I'm like, I would do anything for
• 28:40
  Speaker 4: my kid. And like, if Harvey comes to me one
• 28:43
  Speaker 4: day and says, Mom, I really want to buy my
• 28:45
  Speaker 4: first home. So if I think you're financially responsible, and
• 28:49
  Speaker 4: you know, I'm going to be that crazy mom, it's like,
• 28:51
  Speaker 4: show me some savings habits, Like I'm not just going
• 28:54
  Speaker 4: to give you a garantallan sir, Like that's not how
• 28:56
  Speaker 4: this house works. But I want to put you in
• 28:59
  Speaker 4: the best possible financial position. I didn't work this hard
• 29:02
  Speaker 4: so that I couldn't give my kids a leg up,
• 29:04
  Speaker 4: and I think everyone wants that. And if you are
• 29:06
  Speaker 4: looking at it going, well, it's unfair. The whole entire
• 29:09
  Speaker 4: world is unfair. I'm so sorry, but like, let people
• 29:13
  Speaker 4: do what they need to do. And yes, it's just
• 29:15
  Speaker 4: the market, but I think it's an important concept to
• 29:18
  Speaker 4: understand as well. Because your parents don't have to cough
• 29:21
  Speaker 4: up any cash, it doesn't financially impact them. There are
• 29:25
  Speaker 4: a lot of things that would happen before a guarantee
• 29:28
  Speaker 4: would be called up, and one of them would be
• 29:30
  Speaker 4: you selling your house because you can't afford it.
• 29:32
  Speaker 2: Yeah, and I guess around having a guaranteol like a
• 29:35
  Speaker 2: lot of people tend to think that the parents properly
• 29:38
  Speaker 2: need to be paid off in full. No, they can
• 29:40
  Speaker 2: have still have a loan. But drawing back to the
• 29:42
  Speaker 2: equity question that you asked again, similar to like if
• 29:46
  Speaker 2: you were drawing equity on your new purchase, there does
• 29:49
  Speaker 2: still need to be It depends which bank you go with,
• 29:51
  Speaker 2: but there does still need to be ten So twenty
• 29:54
  Speaker 2: to thirty percent inequity available on that guarantel's property as
• 29:58
  Speaker 2: a minimum.
• 29:59
  Speaker 4: Yeah, I want to pivot a little bit because we
• 30:01
  Speaker 4: were saying before the most common type of guarranteur is
• 30:05
  Speaker 4: a mum and dad guaranteuring a child. But we had
• 30:09
  Speaker 4: a lot of questions come through from community members wondering, well,
• 30:14
  Speaker 4: what if I want to have my partner as a
• 30:16
  Speaker 4: guaranteur on my mortgage? Instead of my parents. What do
• 30:19
  Speaker 4: you think about that question?
• 30:21
  Speaker 2: I sort of have to know the scenario a little
• 30:23
  Speaker 2: bit more, but I asked because when you say partner,
• 30:27
  Speaker 2: are they married, are they de facto?
• 30:29
  Speaker 3: That will come into it as well.
• 30:31
  Speaker 2: If you're married, then yes, your partner can be a
• 30:34
  Speaker 2: guaranteur to you if that's that you're wanting to purchase
• 30:37
  Speaker 2: an investment property in your name solely, or wanting to
• 30:40
  Speaker 2: purchase on the holiday property, whatever it may be. But
• 30:43
  Speaker 2: in some cases some banks will not allow if you
• 30:46
  Speaker 2: are in a de facto relationship, for them to guarantee
• 30:49
  Speaker 2: that purchase.
• 30:50
  Speaker 4: Yeah. Absolutely, Now I promised before, or I said to
• 30:54
  Speaker 4: everyone before, we're going to talk about like how to
• 30:56
  Speaker 4: pay off your mortgage sooner. So let's jump to that,
• 31:00
  Speaker 4: because I think that's an exciting topic that all of
• 31:02
  Speaker 4: us want to hear, how to get rid of our
• 31:03
  Speaker 4: mortgage sooner. I don't think anyone's been like, no, I'd
• 31:06
  Speaker 4: love to hold onto this for a little bit longer,
• 31:08
  Speaker 4: like it's just so nice to be in this relationship
• 31:10
  Speaker 4: with this bank. What are your favorite ways to reduce
• 31:14
  Speaker 4: the life of a mortgage.
• 31:16
  Speaker 2: I would say you're baking extra repayments and it can
• 31:19
  Speaker 2: be as little as possible, but almost just like rounding
• 31:22
  Speaker 2: up your mortgage repayment for that month or that week,
• 31:25
  Speaker 2: because every little bit does help, and it's going to
• 31:28
  Speaker 2: shave off years off your mortgage, which again is going
• 31:31
  Speaker 2: to save thousands of dollars.
• 31:32
  Speaker 4: Yeah. Yeah, And you can google mortgage repayment calculator and
• 31:36
  Speaker 4: have a bit of a play around with that once
• 31:38
  Speaker 4: you have your mortgage as well. Like it doesn't necessarily
• 31:41
  Speaker 4: need to be from a specific bank. My favorite ones
• 31:43
  Speaker 4: are the ones on the money Smart website because they're
• 31:47
  Speaker 4: not tied to a bank and it's just literally the numbers,
• 31:49
  Speaker 4: and they're not going to be like click here and
• 31:51
  Speaker 4: give us your emails so that we can send your results,
• 31:54
  Speaker 4: like I just get out of my emails. But you
• 31:56
  Speaker 4: put in your interest rate, how much you're paying, what
• 31:59
  Speaker 4: you own, what it's worth, all of that fun stuff,
• 32:02
  Speaker 4: and then you can play with the numbers so you go, oh, well,
• 32:05
  Speaker 4: what would an extra hundred dollars a month on this
• 32:08
  Speaker 4: mortgage look like? And it will spit it out and
• 32:10
  Speaker 4: I think you'll be surprised at how much it cuts off,
• 32:13
  Speaker 4: because I think a lot of people are like hundred
• 32:14
  Speaker 4: bucks on a mortgage, But my friend, your mortgage is
• 32:16
  Speaker 4: for thirty years, one hundred bucks, and.
• 32:19
  Speaker 3: That makes a huge difference.
• 32:20
  Speaker 4: Yea, and more that often than not you have to
• 32:22
  Speaker 4: check the terms and conditions of your particular mortgage. But
• 32:25
  Speaker 4: more often than not, those extra payments go directly to
• 32:28
  Speaker 4: the principle, not to the interest part of the loan,
• 32:31
  Speaker 4: and they'll build up in redraw exactly, and then you
• 32:34
  Speaker 4: end up in a better position. So definitely worth looking into.
• 32:38
  Speaker 4: Are there any other ways that you could potentially reduce
• 32:41
  Speaker 4: your mortgage?
• 32:42
  Speaker 3: I'd say making sure that you're using your offsets effectively.
• 32:46
  Speaker 2: Yeah. I mean a lot of the time people will
• 32:49
  Speaker 2: have one offset, which is fine if that's how you
• 32:52
  Speaker 2: prefer to your banking or if you only need one,
• 32:55
  Speaker 2: But when you have multiple, they are all working one
• 32:57
  Speaker 2: hundred percent for you. So if you've got you know,
• 33:00
  Speaker 2: even if it's three thousand dollars sitting in one account
• 33:02
  Speaker 2: or five hundred dollars in another account, and you've got
• 33:04
  Speaker 2: your bulk savings in another account, like, all of that
• 33:07
  Speaker 2: could be working towards your mortgage, and therefore more of
• 33:10
  Speaker 2: your payment is going towards the principal and therefore saving
• 33:14
  Speaker 2: money and interest as well, so making sure that they
• 33:17
  Speaker 2: are set up correctly, and if we need to open
• 33:20
  Speaker 2: up more, if we can with that bank, because you
• 33:22
  Speaker 2: do have other accounts that you might have your salary
• 33:24
  Speaker 2: going into another You might have maybe salary going into
• 33:26
  Speaker 2: another bank completely and then transferring that across. You know,
• 33:30
  Speaker 2: why don't we speak to HR and get that your
• 33:32
  Speaker 2: salary paid paid into an offset account directly because offsets
• 33:36
  Speaker 2: are calculated daily, so every little bit does help, it.
• 33:40
  Speaker 4: Does, and that would be an additional one I want
• 33:41
  Speaker 4: to throw in there. So the interest on your mortgage
• 33:45
  Speaker 4: is and I need to cavey out that there might
• 33:47
  Speaker 4: be mortgages where this doesn't happen, but I haven't seen
• 33:49
  Speaker 4: them recently. Is calculated on a daily basis. So if
• 33:54
  Speaker 4: you want to save even more off your mortgage, instead
• 33:57
  Speaker 4: of making the monthly repayment, you could start making weekly
• 34:01
  Speaker 4: repayments and set that up with your bank because that
• 34:04
  Speaker 4: can actually shave off years on your.
• 34:07
  Speaker 2: Mortgage way and end up making extra payments over that year,
• 34:11
  Speaker 2: which again builds up in regeor. And look that money,
• 34:14
  Speaker 2: the money that is building up in rege or is
• 34:16
  Speaker 2: your money. It is additional funds that you have paid,
• 34:18
  Speaker 2: so if you do need to access that, you can
• 34:21
  Speaker 2: draw that back out. But obviously, ideally the whole point
• 34:24
  Speaker 2: is to keep it in there and pay off your
• 34:26
  Speaker 2: mortgage sooner.
• 34:26
  Speaker 4: Yeah, all right, and I reckon this is a good
• 34:29
  Speaker 4: question to end on because I could talk about mortgages
• 34:31
  Speaker 4: literally forever. And that's why I've already promised the community
• 34:33
  Speaker 4: that you're coming back, because I'm like, no, we're not done.
• 34:36
  Speaker 4: But I also only had an hour with Jack today
• 34:38
  Speaker 4: or forty minutes I think with you today. I always
• 34:41
  Speaker 4: hear from our community that this is something that is
• 34:44
  Speaker 4: a really big priority for them, and it's paying off
• 34:47
  Speaker 4: their mortgage as soon as possible, like smashing it down,
• 34:51
  Speaker 4: not investing, just paying their mortgage off as aggressively as possible.
• 34:57
  Speaker 4: Is that something you recommend.
• 34:59
  Speaker 3: That's a tough question, I think again it comes down
• 35:02
  Speaker 3: to what do you do? What do I do?
• 35:05
  Speaker 4: Are you just smashing your mortgage off? You would be
• 35:08
  Speaker 4: she's so conservative?
• 35:09
  Speaker 3: I love it. Do you want my own assessor?
• 35:14
  Speaker 2: Yes?
• 35:14
  Speaker 3: Well, that's why I'm asking.
• 35:16
  Speaker 4: Because we can't tell people not to do it, that
• 35:18
  Speaker 4: we can share our personal lig You're going to come.
• 35:19
  Speaker 3: Down when it's going to come down to what you're
• 35:23
  Speaker 3: trying to achieve, like what your goals are. If your
• 35:25
  Speaker 3: goals are to reduce your.
• 35:27
  Speaker 2: Payments, pay off your home loan, own it outright as
• 35:30
  Speaker 2: soon as possible, and that's a goal fantastic. If your
• 35:33
  Speaker 2: goal is to purchase an investment property, you might not
• 35:37
  Speaker 2: be looking to direct all of those extra funds that
• 35:39
  Speaker 2: you do have into that mortgage. You might be wanting
• 35:43
  Speaker 2: to build up a deposit for the next purchase or
• 35:45
  Speaker 2: you know, pop that in redraw which we can again
• 35:48
  Speaker 2: draw out for the next purchase. We might want to
• 35:51
  Speaker 2: keep your mortgage repayments down on the existing property to
• 35:55
  Speaker 2: free up cash flow in a servicing perspective for the
• 35:58
  Speaker 2: new purchase of the investment.
• 35:59
  Speaker 3: So it just depends what your goals are.
• 36:01
  Speaker 2: If you're wanting to buy more property, smashing out and
• 36:04
  Speaker 2: paying off your home loan might not be the direction
• 36:08
  Speaker 2: that you need to go.
• 36:09
  Speaker 4: Fair, My goal in life is to get like filthy rich,
• 36:13
  Speaker 4: like I have no shame in saying that, and so
• 36:15
  Speaker 4: therefore my husband and I just pay the minimum on
• 36:18
  Speaker 4: our mortgage. We do have an offset or we have
• 36:20
  Speaker 4: multiple offset accounts, and that's where all our cash lives.
• 36:23
  Speaker 4: Because I want every single dollar that comes into my
• 36:25
  Speaker 4: accounts to be working while it's with me, and then
• 36:28
  Speaker 4: we are investing outside of that. And that's a priority
• 36:31
  Speaker 4: for me because for me, knowing what I know, time
• 36:35
  Speaker 4: in the market when it comes to our share portfolio
• 36:37
  Speaker 4: or you know, if we ever wanted to buy an
• 36:39
  Speaker 4: investment property which is not aligned to our goals at
• 36:42
  Speaker 4: this point, is a priority. So I want to make
• 36:45
  Speaker 4: sure that I am in the share market for as
• 36:47
  Speaker 4: long as possible, and that means not aggressively paying off
• 36:51
  Speaker 4: our mortgage. I'd actually prefer to get to sixty five
• 36:54
  Speaker 4: and yeah, like I'm planning on paying it off in
• 36:56
  Speaker 4: the timeframe that I was given. Don't worry, we're not slacking.
• 36:58
  Speaker 4: But like, I'd prefer to gain to sixty five, have
• 37:01
  Speaker 4: a bang and share portfolio, and also at that point
• 37:04
  Speaker 4: nearly have paid off my mortgage. Then get to the
• 37:07
  Speaker 4: age of forty maybe forty five, have a completely paid
• 37:11
  Speaker 4: off house but no other assets, and then I'm starting
• 37:14
  Speaker 4: from there with wealth creation. So there's lots of episodes
• 37:18
  Speaker 4: on that and we'll link it all in the show notes.
• 37:21
  Speaker 4: But miss Jaqueline Walsh, thank you so much for that
• 37:24
  Speaker 4: and for anyone who Wants More. Jack is going to
• 37:27
  Speaker 4: be back for that episode. I promised. I'll ask her
• 37:30
  Speaker 4: about it later. It will be on equity, so I'll
• 37:32
  Speaker 4: get her prepping and calling some banks and asking a
• 37:35
  Speaker 4: lot of questions because I would say that was by
• 37:37
  Speaker 4: far the biggest theme that we had when we did
• 37:39
  Speaker 4: A Q and A. So thanks in advance for agreeing
• 37:41
  Speaker 4: to that. No, Oris, thank you, And if you have
• 37:44
  Speaker 4: a friend or a family member who's been thinking about buying,
• 37:47
  Speaker 4: feel free to share this episode with them. Plus make
• 37:50
  Speaker 4: sure you hit subscribe so that you don't miss any
• 37:52
  Speaker 4: of the episodes that we have coming up this year,
• 37:54
  Speaker 4: because we've got some really good stuff planned. I'm biased,
• 37:57
  Speaker 4: but I was involved. Anyway, have a good week, guys.
• 38:07
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