August 3, 2025 • 41 mins
The number of mortgage holders refinancing their loans is the highest ever recorded.
More than 3,500 borrowers refinanced in June, and experts are expecting to see the trend continue through to the end of the year.
Finance specialist Amanda Morrall joins Tim Beveridge for Smart Money.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks.
Speaker 2 (00:09):
B is coming.
Speaker 3 (00:16):
Please dolcomes appearance.
Speaker 4 (00:42):
Yes, welcome back, Tim Beveridge. This is the Weekend Collective
and this hour is called Smart Money, What Your Cause
on eighty ten eighty in text on nine two nine two,
and we're going to kick off probably combine these two
issues actually because the number of mortgage holders are refinancing
their loans is the highest ever recorded, and we're going
(01:04):
to dig in to that. Why people are doing What
are the outside implications the other options? More than three
and a half thousand borrow, God, I can't even speak.
More than three and a half thousand Borough was refinanced
in June and experts are expecting to see the trend
continue throughout the year. But with the cash rate being
at its lowest in a while and wide, now, what
(01:25):
are the implications anyway to discuss that? And also I
think it all ties into the question of just I
don't know, I come on thinking of that song money
is too tight to mention? Now? Who is that? Is
it talking heads or something? Money is too tight to mention?
But there's an ongoing conversation a bit about and if
you're refinancing often because you need a bit more money.
You need to I don't know, you need to readjust
(01:47):
your your settings. But the question around what it really
is to live a good life in New Zealand and
what does it cost, We're going to dig into that
a little bit. I'll flesh that out a bit more.
But before we do, finance specialist and commentation to Amanda
Morale is with us today. Amanda, how are you going?
Speaker 2 (02:07):
Goodim and a belated congratulations to Tyran. We're going to
talk about the personal finance of weddings after she's from financing.
Why have we not a wedding scenario? But we'll save
that for another one.
Speaker 4 (02:20):
She's spent I don't know, she probably what she spend
about one hundred and fifty thousand year.
Speaker 2 (02:23):
She smart with money. I know she did it on
a shoes.
Speaker 4 (02:27):
During Why did we I'm going to write a note Tyra?
Can you it's now Tara Ward? Of course I keep
saying Tyra Roberts, but she's going with her married name.
And you were trawling through the the wedding photos, which
I've mentioned countless times on the show, but they are lovely,
so I likely.
Speaker 2 (02:41):
That people are still getting married, and also, you know,
because it can be very expensive. So but we'll come
back to that next time I on the show.
Speaker 4 (02:49):
I'm always tempted to throw everything out and talk about
it now. But anyway, let's not, because we haven't quite
prepared for that. But actually, let's just the refinancing their loans.
And I guess there's refinancing, which is refixing because your
interest rates come up. Then there's refinancing, which is I
don't know, borrowing a bit more money or slowing down
the rate of payment or changing what you're doing. And
(03:09):
that's gone up. I'd have to say, I'm not surprised
it's changed, but the highest ever recorded sounds grim.
Speaker 2 (03:19):
Well, it's not entirely surprising, is it, Because the cost
of living has gone up, right, and as there's an
opportunity to you know, go to a lower interest rate
because people are struggling so much, they're helping to get
more cash in hand so they can fasimably live. So
it actually does go hand in hand with that other
sort of sidebar philosophical question you posed as well about
(03:40):
you know, what it takes to have a good life,
because whilst some people are going through this exercise they're
opting to take, you know, the difference between what they're
going to save and spend it. Some need it for
survival and other people are just using it purely as
a strategy to kind of like get the monkey off
their back.
Speaker 4 (03:58):
What is actually let's define what refinancing is, because technically,
if you've had a you know, your interest rates being
seen for six months and you refixing it, is that
refinancing or is that just refixing your right because I
would have thought refinancing is like, okay, I needed a
chat with the bank because you know, we.
Speaker 2 (04:16):
It's horses for courses, so you can do multiple different
things when you know the term comes up. Or some
people don't wait for the term to come up. They
choose to break it having done the mouth and decide that,
you know, they're better off paying the penalty to break
the mortgage and go with another bank. But in terms
of refinancing, you know, some people will elect to you know,
(04:37):
they simply need more money to get to get by
with living. Other people want to have more flexibility, so
they chop and choose and get a floating and a
fixed rate sort of split. Other people want to take
equity out of their house so they can you know,
do get married, for example, or do some home rennos.
(04:58):
So there's a number of reasons why people do they
tip it. Typically will do it as they're approaching the
end of you know, the term that they had set
and we've seen that that that's coming up, and people
have been under a lot of stress and pressure recently
with rates being quite high relative so soon after after
the COVID sort of you know, record lows.
Speaker 4 (05:19):
So the headline of refinancing highest ever recorded. It sounds
like something that just rolls over anyways, And I mean,
is this really a concerning step?
Speaker 2 (05:27):
Well, I think what they're speaking to is people actively
choosing to look at maybe doing things differently, which I
would celebrate because a it means people are getting less
apathetic or less complacent about you know, the cost of
boring money, and the cost of boring money long term
is you know, incredibly high, and most people will pay
(05:48):
more in interest payments than what they paid on their
actual house when they look at the life of you know,
paying off the mortgage. So I think a on one hand,
it's a bit of an alarm bell about people are
you know, have this urgency to look at how to
do things a little bit differently because they have to
where they want to. And on the other hand, you know,
(06:09):
you know, it's an opportunity for people to kind of
get more educated about taking a more active approach about
managing their money, which their mortgage is going to be
I guess costs.
Speaker 4 (06:18):
I really looked at the article of this and it's
and one of the stories is a record number of
New Zealand mortgage holders changed lenders in June as well,
so it's they've actually changed too, they're borrowing from.
Speaker 2 (06:29):
They're getting more competitive, which is fantastic. So again people
a little less apathetic. I think last week too, there
was some news about more Kiwis were switching banks as well,
so people are getting you know, this is probably thanks
to you know, AI and other comparative tools where people
can actually now get their hands easily on comparative information,
(06:52):
whereas in the past it was a big chore phoning
around and walking. You know, now there's never been a
better time to have more transparency around.
Speaker 4 (07:00):
How much money Actually. That's it's interesting because we also
so like in fact, this sort of overlaps a little
bit with what we're having a chat with Debi Roberts
about mortgages and if you're an investor, how it's not
a bad move to have quite a few different lenders,
because there can be problems if you've got one bank
and you want to sell one properly and they want
(07:21):
to they can do other things with their money. But
as part of it, we talked about the convenience of
being with one bank and the fact that we're often
creatures of habit. People get their bank and they get
their mortgage and it just all looks a bit too
hard to think about shifting, which means that it is
(07:43):
maybe it is kind of surprising that more people are
doing it because they're just thinking, well, they're not worried
about loyalty, they're not worried about convenience. They're just worrying
about the deal.
Speaker 2 (07:50):
And that's all you should be worried about, because the
bank is not worried about anything other than them getting
the best deal for them out of you. So I
think borrowers need to be certainly more informed, more active,
more passionate about this issue and get the best bang
for their back. One thing I have seen, and you
see it particularly among first home buyers is you know,
(08:12):
they're younger, they're a little bit nervous, they're not quite
as bullshy, and you know they take you know, the
first or second offer that comes along without really pushing
for a better rate, and so they mess out potentially
in an opportunity to get a more competitive rate, but
just because they're a little bit too shy to ask
for one. And so you know, that whole thing that
(08:32):
you've got to accept the rate, first rate that gets
offered to is that's out the window now. I mean
you really can. You've got some ability to arbitrage and
you know, pit these banks against each other so you
can carve out the best possible interest rate because it
does make you know, tens of thousands of dollars of
difference over time.
Speaker 4 (08:49):
Which banks actually do you think do better at keeping
your custom But I look at my bank, I'm with
I must well, we don't have a massive amount of
a mortgage and the idea of having to go through
refinance and would be a pain. But they have made
it really easy because you see the advertised right and
then such and such and they sell then they just.
Speaker 2 (09:07):
Say match it.
Speaker 4 (09:08):
Well, they don't even do that, they say beforehand they go, look,
here's the right, but we'll give you yours for this
without even me even asking. And I just I think
that's smart because I just go, okay, click yeah.
Speaker 2 (09:18):
But you know, but how much better could they do
if you actually phoned around or visited a couple other
locations and they came back with something even lower and
then you drive them back? So you know, you have
to be sounds like buying a used car or your
used car SYSM. But like, honestly, I would not underestimate
the power of your negotiating ability when it comes to
boring big sums of money. There is movement in the market.
(09:39):
You just have to be. If you're not good at
it yourself and confident, recruit somebody who has to advocate
for you.
Speaker 4 (09:46):
Actually would love to hear from you if you've refinanced.
Did you do it? Did you haggle or did you
just look at whatever website you go to to find
I know with the one that comes to mind for
me is Andrott, Curtit and Z. But it's not the
only website that tells you about the intant mortgage rates.
I should back up. My one is that I because
of the job I do. I've had proper the investors,
and I was put onto a mortgage broker who's really good,
(10:09):
and I got in touch with him and said, oh,
by the way, the I've got to refix my mortgage.
And he said to me, how much is your bank offering?
And I told him, phone's gone off in the background.
Just turn that but set to silent.
Speaker 2 (10:29):
Anyway, phone foul.
Speaker 4 (10:30):
I better start this story.
Speaker 2 (10:32):
What happens in the sweitch from up to android?
Speaker 4 (10:35):
And don't know how have you gone to android congratulation?
Speaker 2 (10:40):
You know, in an effort to save money. I had
a bit of a phone foul, So I apologize. I'm
still trying to master my Android.
Speaker 4 (10:47):
You'll love it. You'll love it. No, have to get
back on this. So as I was talking about refinancing
and I spoke to the mortgage broker who I had
some dealings with through one of our guests, and he
actually said to me, what's your bank offering? And I
said X and he just said, okay, I can't any
bit and that just take that. That's great. They're obviously
(11:07):
but I don't you know, they're obviously being aggressive.
Speaker 2 (11:11):
And they only you know, they can only go as
low as or permitted to go, so, you know, but
there's a little rg bargie back in the forth. I've
done it with like term deposits, and you know, you
just kind of it's the same thing with salary negotiations,
the exact same approach. You're not going to just take
the first you know, salary, you know offer, that's you know,
you got to go in there and and fight your corner.
Speaker 4 (11:32):
Are you good at hagling?
Speaker 2 (11:34):
I never used to be. But you know, maybe it's
just an age thing, but you do, you do get up.
I mean I don't like to do it at the
market or something, those kind of things.
Speaker 4 (11:43):
Where you say how much of a cross on and
they say A seven dollars?
Speaker 2 (11:46):
You know, when you're travel you're traveling and you already
know you're you know, just so far ahead with your
dollar versus the local. I don't like that. But but
when it comes to things like you know that count
you know, meaningful big sums of money, I have no problem.
Speaker 4 (12:01):
We'd love to hear from you if you've refinanced, and
you've in particular you've shifted lenders. With an increasing number
of people shifting lenders, and Kelvin Davids from totality and
formerly known as core logic. He's put it down to
simply people, you know, they're doing better research, they're monitoring
the rates in the terms, and it's changing the game
(12:21):
for lenders, I guess. But if you have refinanced, what
was the journey, because a lot of people will still
look at their mortgage and go on with the bank.
Let's click on the link. Oh they're offering me this.
Oh that'll do. I can't be bothered. As I've said,
I'm not quite like that, but close.
Speaker 2 (12:38):
Well there, you know, but it's a personality thing. I
was working I do some mentoring, mentoring with a young influencer,
and you know, she wasn't claiming home expenses. She was
meant to be zeroes. He read it on something and
she said, oh, I can't be a lie. I'm like, listen,
I would be doing this in a heartbeat if it
was me. So come on, take an interest. And so
we managed to like, you know, push her heart a
(13:00):
little bit. I think, get these things all reconciled, and
she saved herself five thousand dollars. All of us. Sudden
the penny dropped and she thought, oh, it is in
my active interest. To, you know, take a boulderstand, to
take a few minutes to do something which really didn't
take long at all. But initially she had this mental
kind of attitude about I can't be bothered. Oh it's
(13:21):
going to be too hard, Da da da da. So
you know, it's really you got to overcome that mental
hurdle in the first instance to get to the gravy,
you know, and it's worth it, Sugar.
Speaker 4 (13:32):
It sounds like a good topic for a book, getting
to the gravy buyer. Amanda Morale, I like that. Let's
take some calls. If have you refinanced, if you shifted banks,
and what tip the scales for you? Was it another
I don't know how much actually would it need to
be to make it worthwhile, because if it's point one
of a percent, depending, I guess a few mortgages, half
a million bucks even that's worth it.
Speaker 2 (13:51):
Oh for sure. That's where those calculators will show you
the point one difference what it makes, right.
Speaker 4 (13:55):
Let's it's got some calls, Anthony geta.
Speaker 5 (13:59):
Ohkay, gosh, I've got a pretty interesting story. It's from
the last couple of months. Am I allowed to mention
names banks.
Speaker 4 (14:09):
Individuals out of it if you want to mention a
bank or something. But I mentioned Dave Smith from such
and such bank.
Speaker 5 (14:14):
You okay, Well, so I can mention the banks.
Speaker 4 (14:18):
Yeah, it's right, as long as you're not going to
slag them off. But you know, yeah, we'll look I mean,
just don't defame them.
Speaker 5 (14:25):
Yeah, no, I'm not going to just fame that. This
is this is a fact. So yeah, So me and
my partner we have a couple of rental properties. So
we've got approaching sort of three million dollars worth of
debt on those properties, and they have recently come up
for renewal for the for your work fixed for a
(14:46):
couple of years. And you know, you get the message
to say, oh you know your your rate's going to
go to theirs them blah blah blah. Anyway, I rang
them up and said, oh, look, what's the best deal
you can do, thinking that I could get a better rate.
They said, oh, look, we can give you a bit
of a discount on the rate, and we can give
you I think it was about three or four thousand
dollars cash back. And I said, oh, yeah, that sounds
(15:07):
about right. And I nearly said gave it the okay,
and then I got talking to a friend of mine
who said, oh, you need to give the A and
Z a call. They are offering one percent back on
your total borrowings and they'll match the rate. So do
the math. That's thirty thousand dollars. Well thirty thousand, just
over thirty thousand dollars is what they offered them cash back,
(15:30):
and they matched the rate. I think it was four
point eighty five for eighteen months or two years. It
was huge.
Speaker 4 (15:37):
It was huge. The cash back, it sounds great, and
I remember how many people go for this cash back
as opposed to going out. I mean, and I might
take what else are you offering?
Speaker 2 (15:48):
But good on you for taking the extra going the
extra mile there while worth it.
Speaker 5 (15:52):
Yeah, well it wasn't the extra mile. It was easy.
And that's what I don't think a lot of people understand.
I understand it's a big piece of debt. But I
was mildly peeved with the B and Z because I've
been with them since I was seven years and I
made that point to them and I said, look, you've
got to you've got to move. And they demanded to
see the email from the person at A and Z.
(16:13):
And then they still wouldn't move, and they still didn't
match it. They got to about twenty four to twenty five.
I said, guys, that I'm going to move for that
five thousand. I said, oh, it's going to it's going
to cost you five grand in legal feet and I said, look,
i'll decide what that costs me. My other half's the lawyer,
so it doesn't cost much at all. But they weren't
prepared to move.
Speaker 4 (16:33):
So well, I guess they lost because they they didn't sound.
Speaker 5 (16:37):
Like yeah exactly, but I just I just wanted the
as many people as I could let's know about this
particular scenario, because it's twenty five thousand dollars after tax.
That's for a lot of people, that's nearly half a
year's salary.
Speaker 4 (16:52):
So yeah, yeah, that's it's Actually I think that the
other mistake that you're existing bank made for with you.
I don't know it was them asking for proof of it.
Speaker 5 (17:04):
Yeah, that's what.
Speaker 4 (17:06):
It's a good movie either because they can either do
you a better deal or they can't. And it shouldn't
matter what some of it unless they go, oh, well,
we we'll match it, but I need to I.
Speaker 2 (17:14):
Don't know, Well, I some evidence that there.
Speaker 5 (17:18):
You know, yeah, well I probably would have done the
same thing, but I mean, ultimately that was I'm going
to be twenty thousand. I haven't made my decision yet,
but it's sorry, we haven't made our decision yet. But
based on that, you know, we got twenty thousand dollars
out of the band said if we stick with them.
Speaker 4 (17:35):
Oh we get this is in play right now. Five.
Speaker 5 (17:38):
Yeah, so this isn't played out all. I haven't fixed
anything in because the rates have been dropping. So we're
just one floating at the moment until the next step
O cr and then we'll make our decision on what
we want to do. But yeah, that's that's a significant saving.
And you know, as I said to the person when
when I said it beings and I said, I'm going
to let every one I possibly know about this, about
(18:02):
this conversation and what's happened here, I said, well that
steps up is still perfect. Perfect A lot of money.
It's a lot of money for you, for you, for
your listeners to say that.
Speaker 4 (18:17):
You can go on demand and download the audio for
this and go well, I've told a few people.
Speaker 6 (18:21):
Thank you for calling and sharing that.
Speaker 4 (18:25):
Well, you got to your chips with them. Now think
it can't get any worse. But look, actually, well I
don't you know. He mentioned the bank and everything, But
I guess every bank has its ups and downs in
terms of how it deals with people, and but there
will be banking satisfaction surveys. I guess all that.
Speaker 2 (18:43):
But it's a perfect example of how lazy the banks
can be too. So here's another example. Because I spent
years working you know the keis of a provider. You know,
people were switching. Then we'd get these stories coming back
to us about you know, for the first time ever,
my bank called. These are people who have their us
over the bank to say what can we do to
get your switcher persuade them to switch? And it would
(19:03):
be the first phone call were actively hard from the bank.
So it's like, Okay, I've had my money with you
for you know, thirteen years, but you're choosing to only
now reach out and act like you care about me
as a customer. So it's kind of like it's a
bit of a message to wake up to you need
to be better job servicing your customer.
Speaker 4 (19:22):
That's any company. Actually, I mean I won't repeat, I
won't repeat the company because I've given them a good
old bashing on other hours of talk back. But I
was with this phone company with my phone mobile phone,
and I used to pay quite a lot for it.
And then it was Bell South or two degree Clear Communications,
and which became two degrees or something came in and
I thought, you know what, that's a great offer. I'm
(19:43):
going to check it out. And I switched, and all
of a sudden, the company that I was with offered
me a great contract, and I literally just said, I
was just like, there's no way I'll never do business
with you again because you've shafted me until you suddenly
realized maybe I should be bit friendly and competitive. They'll
never get me back. And the fact that it takes
another offer for us to go, oh okay, we can
(20:06):
do better. Sorry, But maybe that's because there's a part
of me that deep down is a little bit you know,
I don't know, we're a bit vindictive, well unforgiving.
Speaker 2 (20:16):
Yeah no, but it works for you in that case.
I mean, it's almost like they should teach kids, you know,
coming out of high school or you know, university or
whatever about you know, the art and negotiation.
Speaker 4 (20:27):
I wonder, I mean, he was Anthony was talking about
quite a big borrowing there for me, three million dollars
worth of borrowing. I mean it's probably worth the bank too.
If they were going to, you know, do a particularly
sweet deal, than three million dollars of borrowing probably would
do the trick, wouldn't it.
Speaker 2 (20:43):
Absolutely. Yeah. Well, I mean make no mistake. Banks won't
do anything that's not in their best interests either, So
it's not like they're losing out of the equation there either.
But the other one lost more, you know, because a
they'll probably move all their bank accounts across as well.
Speaker 4 (20:57):
So we'd love to hear your story about refinancing. And
actually the other is the conversation evolves the cash back
does does that impress you as a tool for either
sticking with your borrowing or going with a borrower? Because
in Anthony's case, it was a fraction of what he
was able to save himself if he'd taken the money,
which sounded a bit glossy at the start. I'm always
(21:18):
deeply suspicious of cash backs because I think, why are
you giving me cash?
Speaker 6 (21:22):
Pack?
Speaker 4 (21:22):
Just give me a cheap cheap of mortgage.
Speaker 2 (21:24):
Yeah, I agree, I'm not enticed by you know, free
iPads or one thousand dollars you know, for the fridge
or whatever like in the context of a mortgage and
maybe a better rate. It's really nothing. But you know,
again it's the psychology of it, and they understand that
some people love that idea of free money and if
they even have, you know, so they just go for
the first little carrot that's dangled in front of them
(21:45):
without doing, you know, a deep dive and looking at
the larger cost of boring over time, which is what
you need to do, which is why those calculators, the
comparison calculators, and you mentioned it earlier, but interest dot
coded zed has a wonderful calculator where you can set
across the rates of two different mortgages, the amounts whether
you're paying for it nately or monthly or rears in advance,
(22:08):
and do a really great comparison which will show you
the breakdown and the principle and the interest over time.
And again this is where the point one difference can
make a huge difference over time. So it's really well
worth your time. And it doesn't even it's not that hard.
I think a lot of people used to say they
couldn't do this, or they weren't good with money, or
they didn't know how to do spreadsheets. But honestly, it
has never been easier to do this stuff.
Speaker 4 (22:29):
Now I've got another way you can do it as well,
which we'll share it chat GP Oh we've talked about.
Speaker 2 (22:34):
Yeah, yeah, your new finance advisor.
Speaker 4 (22:38):
I'll tell you that. I'll talked about that after the break.
We do have to take a break, but we talk
about your stories about refinancing. The news is that the
record number of people are actually switching lenders, not just refincing,
but they're switching lenders. More than three and a half
thousand borrowers refinancing those with loans worth a total of
two point five billion in lending and catality have revealed
that there's this huge number of people have shifted lenders.
(23:00):
Are you one of them? What did it take? But
also what does it take to sweet talk you into
a new deal?
Speaker 6 (23:05):
Is it?
Speaker 4 (23:06):
Have you fallen for any track or did you simply
go in and do the hard yards and say, listen,
this is what I've got with my bank. Haggle hag
will haggle, will haggle, deal done sold eighteen eighty And
I probably have told the story about my chat GPT
calculating my mortgage, but actually tell you what it was.
It's one way of doing things. Twenty nine and a
(23:27):
Manda brows with us. By the way, but you recognize
that friendly Canadian accent.
Speaker 2 (23:32):
You remember from Canadian or you never with apologies to
my America.
Speaker 4 (23:37):
If somebody tells you that Canadian, don't forget it and go, hey,
where are you from? Are you from New York or something?
I don't know why I put in an accent that
was there. We go, it's half past five. Back in
the my.
Speaker 2 (24:05):
Come in.
Speaker 4 (24:08):
One of the lyrics. We're going to kick the song.
This is a song requested by a man of brow,
which is my guest right now. And smart Money. We're
talking about refinancing mortgage and what does it take for
you to switch a lender and are you a bit
lazy or do you go with the actually aggressively chase
the next offer or you were seduced by cash back
taking your calls on this? Oh, by the way, just
before we go to John, so my when I was
(24:30):
I didn't refinance in terms of I was just setting
a new rate and you can change your payments and
how much you're putting in there, and I just chat GPT,
which I pay for the sort of pay a bit
extra again to get them, you know, and I do.
I quite like the talk one and you chose and
she's good. She goes oh hi to him. She goes
oh and ah when she's talking. And I said, look,
(24:51):
this is my mortgage. Can you tell me the difference
if I pay it off at this rate and what
difference it makes and my mortgage if I pay it off,
and if you've got any other scenario so I can
consider at this interest rate. And it goes yeah, if
you do that, and literally comes back and it explains
it in English that if you pay x amount more
per month, this is what it's going to save you
in time. This is much more interest and you can
(25:13):
I can just ask it and plain English. I did
cross check because so it wasn't hallucinating. But the funny
thing is she goes, uh yeah. Anyway she speaks colloquially.
Speaker 2 (25:23):
It sounds like you're falling in love with her. Too careful.
Speaker 4 (25:30):
I think I'm under control.
Speaker 2 (25:32):
You know, they're wonderful. I've been using it for all
manner of things, Like it was a bit nervous before,
but for for finite I mean you want to double
check things, don't, you know, take everything. Don't act on
that as a small piece of advice, but it is
incredibly helpful, particularly for people who are a little bit
uncertain about you know, scenario testing or this or that. So,
(25:52):
and then they don't have to feel like they're asking
a stupid question.
Speaker 4 (25:55):
Yeah, it's huge, right, And she'll even tell you it's
not a dumb question. I say, is this a dumb question?
Speaker 2 (25:59):
Go?
Speaker 4 (26:00):
No, of course, not dumb question.
Speaker 2 (26:02):
Getting a little bit suspicious, does she haven't?
Speaker 4 (26:04):
N I don't worry when I try and have a
conversation in French as well, and she'll switch like that
and then I don't understand what she's saying. AI amazing technology. Anyway,
let's carry on show it.
Speaker 6 (26:17):
John, Hello, Yeah, good a, how are you good time?
I'm I'm from South and our parents were clients of
the South and Building Society, and so was I am
my partner you know for sixty seventy years. And anyway,
after we were tired, we had sold a property and
(26:37):
then we went to them and said could we buy
a three hundred k for one year? Because we got
over a million dollars here that you can take. They
didn't want to know us, right. Oh, and like the
even the female the ladies lender attitude was totally different.
(26:58):
Previously she was very friendly and positive fleet and then oh, well,
try a second tier lender, and Denise did that, and
and it was Denise and the end said I can't
do this anymore, John, because it's like abuse, because the
(27:19):
second Linda kept wanting more and more intrusive and seventy
and we just said no.
Speaker 2 (27:25):
Sober did you say it was with the building Society?
Speaker 4 (27:29):
Yeah?
Speaker 5 (27:29):
Yeah, building?
Speaker 4 (27:30):
Yeah.
Speaker 2 (27:30):
I thought, well, the information I've heard on a lot
of the societies that this would be a kind of
community based in a little bit more amenable to, you know,
working with their clients. So that would contradict to that theory.
Speaker 4 (27:42):
What didn't what didn't they like about trying to do
business for you?
Speaker 6 (27:47):
I've since found out we've got good friends in christ
Church and they've got a hell of a lot more
more assets and money than we've ever had. And they
only wanted to buy ten thousand to fire ten thousand
from the bank, and they wouldn't give it to them
because they were both retired and they've probably got five
six mellion dollars of us.
Speaker 4 (28:06):
They like income. That's the banks do like income. They're
not happy just to go well, we'll just They don't
like to just bank on the assets, do they.
Speaker 6 (28:15):
And that's why I've run because they will lend people
two or three years before they retire and things like that.
But most people don't know if you're coming up to retirement,
you're screwed when you're sixty five.
Speaker 4 (28:28):
Yeah, it's more challenging, I gather because they don't know.
Speaker 2 (28:30):
That your risk goes up. But with considerable assets like that,
did you add a curiosity? Did you ever try banks
any of the main banks?
Speaker 6 (28:38):
No, we didn't know. We didn't.
Speaker 4 (28:40):
But is that still on the count.
Speaker 6 (28:44):
No, No, it's okay, it's all done now.
Speaker 4 (28:46):
But oh, how's it all done?
Speaker 6 (28:48):
Then?
Speaker 4 (28:48):
What's what's the end of the happy it?
Speaker 6 (28:51):
No? No, we don't. We don't need to go to
them anymore like Attris it's fine and or something. No,
not enough for that, And it was it was a
very traumatizing experience for Denis and I because we've been
(29:11):
loyal clients forever and when you get treated so differently
when you're sitting in front of them. All trust is gone.
Speaker 4 (29:22):
Yeah, I'm surprised that. I am surprised that in this
day and age, John, that people and we were people
where people are having these uncomfortable customer experiences.
Speaker 2 (29:33):
I thought building societies would offer more in terms of
I thought the relationship building.
Speaker 6 (29:38):
Yeah, but they are banks now, I think, aren't they
they another?
Speaker 4 (29:41):
Were you nice and friendly? Did you smile and sort
of be friendly or you were in a difficult Yeah?
Speaker 6 (29:49):
No, no failed payment, nothing like that perfect credit record
that was my parents, right, and but it's indicative of
what they are doing these days, right.
Speaker 4 (30:01):
M oh well, hey, thanks for sharing that with us. Yeah,
I'm surprised that. I mean, you're always going to get
negative customer experiences sometimes because the world's not perfect. But
it does surprise me that.
Speaker 2 (30:13):
Well, I mean, usually everything's built around risk for lenders.
Speaker 4 (30:17):
You know, if there's truck slides of assets.
Speaker 2 (30:20):
That's kind of puzzling and it's just bad bad customer service.
Speaker 4 (30:23):
Almost wonder if there's a certain tier of response when
you get when you're dealing with someone who can only
say no on certain conditions, whether you need to say,
can I speak to someone who's I mean, I had.
I mean just I don't mean up the chain, but
you do, mean you want to speak to it and say, look,
I'm not complaining about you, but I suspect you. You know,
(30:44):
I want to know if I can speak to someone
who would have the authority to look at a different Yeah,
I mean, have you ever done that?
Speaker 2 (30:50):
I have? Actually, I know I'm a bit of a complainer,
but I don't take no for announcwer, so you know,
and you're usually rewarded for that. But again a lot
of people are too polite or meek or whatever to
kind of push it a little bit. But you know,
more often than not does reward you.
Speaker 4 (31:06):
But you can be polite while you're still laughing.
Speaker 2 (31:10):
No, no, no, I mean it's like anything. Sometimes it
just depends on the day. Like unfortunately, maybe that was
that individual that they that the last Color dealt with
who just was on on off day or made a
bad judgment. So it is worth pushing up the food
chain ups.
Speaker 4 (31:24):
I mean, we can't talk about to John because he's
gone now, but actually there's probably something we could have
dug into. Was did he think about asking further up
the food chain? I hate you someing those analogies further
up the food chains. It makes people further down. It
sounds like they don't matter. But authority, well discretion.
Speaker 2 (31:43):
Yeah yeah, yeah, and you know, and you like to
hope that somebody is in a management capacity has been
put there for a reason because they you know, got
you know, more knowledge or more influence or better people skills.
So yeah, that's surprising to hear that story. But happy
ending for this guy. They didn't enough to borrow three
hundred thousand dollars at all, So there you go.
Speaker 4 (32:02):
Yeah, exactly the bank. We'll come back and just talking
about refinancing your stories as well. But what's enticed you
or motivated you? And as they're all, have you chased?
Have you actually gone to the bother of chasing a
better deal? Because more and more people are doing it,
switching lenders, not just you know, restructuring what their payments are.
They're literally saying bye bye to Bank A and going
(32:23):
to bank B. And have you done it? And what
motivated you to do it? And in fact, you know,
I'd love to hear about your good news stories on that.
On eight hundred eight ten eighty I did talk about
where we're gonna have a chat about how much it
costs earn a good to have a good life in Newson.
But I think we might have to save it for
another time. But we'll see how we go. It is
eighteen minutes to six. This is news talk, said b
(32:45):
back in the moynature.
Speaker 2 (33:03):
When a.
Speaker 4 (33:20):
Little bit of money to not mention, of course, it's
that's that's simple minds. That's right. It wasn't talking heads.
I don't know why I thought talking heads when I
mentioned it earlier. So I simply read God all over
the place today. Well you know what that happens sometimes
on a Sunday evenings. Yes, give you, Amanda, Thank you,
Amanda morrale. Hey, one of the issues that people need
(33:42):
to think about before they do refinance, because there's one
thing to say, you're jumping ship. What's the story with
break fees and not getting bitten in the you know,
on the behind. I was going to say bitten on
the ass. I'm not sure how that plays on radio.
Speaker 2 (33:58):
Yeah, So just just before we go into fees, I
think anybody who's kind of approaching or looking at refinancing before.
Speaker 4 (34:04):
They I'll not just get eat a lower your microphy
because we've just got a bit of.
Speaker 2 (34:09):
But no, I think before you kind of go down
that pathway, maybe you just want to like sort of
do a metasearch and think about your reasons. So, what
would be your primary reason if you're going to go
to refinancing intriger money? Well, you know, is it because
you just think it's trendy, You're pissed off at your bank,
you know, or are you trying to release equity of
the home?
Speaker 6 (34:28):
You know?
Speaker 2 (34:28):
So what is your purpose?
Speaker 4 (34:31):
Because if you're angry with your bank, that still might
not be anything worth paying for. You've got to work out.
Speaker 2 (34:35):
I'm pretty sure that most people are walking across the
street to a different bank or doing it because they're
getting a better rate. So most people are acting in
their own interests of trying to save money. But again,
you know, it could be a matter that you're trying
to release some money so you can you know, pay
off other debt that you have, because you know, maybe
it as you want to if you've got to be
sitting on a bunch of other debt that you want
to like consolidate that debt under your mortgage. So again,
(35:00):
zoom out and establish your primary reason for wanting to
kind of switch it up and then you know, start
doing your research on comparison rates. Yeah, but yeah, definitely
if you are breaking mortgage, the fees you have to
be aware of. I I did that in one instance
years ago when I paid off my mortgage and you know,
(35:22):
trying to get from them because I had a little
windfall and I wanted to put a pain, you know.
And then there's yeah, and that's the other thing is
that when you're again resetting the t's and t's, that's
one thing if you're thinking about getting a little windfall
or your sole trader and you get you know, lumpy
sums and you know, make sure that you have flexibility
(35:43):
within your mortgage or if that's of interest to you,
that you don't get punished.
Speaker 4 (35:47):
For that, because the punishments might exist.
Speaker 2 (35:50):
Oh, they're like they have a formula, and you know,
again getting that out of my bank at the time
was harder than pulling wisdom teeth. You really had to
because they said, well, it depends on the day, and
it's this very complex formula. Because I've been like, well,
I'm not going to do this if it's going to
be punitive financially. So at the end of the day,
it got the information and it was worth it too.
(36:11):
You know, you have to do the pros and cons of, like,
you know, paying that HT versus you know, what about
the mechanics action and the amount that you're paying.
Speaker 4 (36:19):
What about the mechanics of getting them to actually to
remove the mortgage from your title? So because they take
a mortgage, it's lodged against the title for your property.
How complex? I mean I should know this, but I don't.
I don't know, once once you paid it off, I mean,
is it complex to once to sign it and get
it removed from the title. So literally the bank is
(36:40):
not present.
Speaker 2 (36:41):
In your well when you no longer owe them money that.
Speaker 4 (36:45):
And they should just execute it automatically.
Speaker 2 (36:47):
There's no I don't think there's any big drama there.
Speaker 4 (36:50):
But get your lawyer to make sure.
Speaker 2 (36:52):
Yeah. Well that's the other thing with legal fees that
you know, make sure you're not going to get yourself
into any kind of trouble on you know, or cost
evaluations are legally mortgage Yeah yeah, so I mean, look
at it for all angles. Is sort of my advice
before you act too quickly. But again, the biggest thing
people can do to help themselves is to some of
(37:14):
those comparisons and like the first caller, don't take no
for announcer, or don't take the first deal that comes along.
Really explore that use a broker potentially. Just be aware
that some brokers have special relationships, so they're not like
casting a wide net with all of the banks. They
made only work with three or four, so some are
going to be I mean, you don't want it to
be too onerous, but you know, put in some effort
(37:36):
because you'll be rewarded for it.
Speaker 4 (37:38):
Actually, we've got a text here from an exce lender says, hi, guys,
as an ex lender, this was just on the core
from John I think was he had lots of assets
but not much income. And he says, as an ex lender,
one never lent to assets unless the debt servicing fitted
the criteria. And no banks like a mortgage sale. It's
a basically sensible lending rule. No one would want to
(37:59):
see retires lose their home or question marks. I think
they probably is something like that. But US banks don't
like mortgage sales. We don't even see them these days.
They seem to bend over backwards to avoid filling the property.
You know, publications with black and white photos.
Speaker 2 (38:15):
I can't I didn't get from John what the ourset
he has had bad a million dollars in assets. It
might have been the family home, but equally they might
have other, you know, oursets.
Speaker 4 (38:23):
It could have been said five million, did I miss
I might have I might be confusing my callers, Yes, yeah,
but you.
Speaker 2 (38:29):
Know whatever tractors or something that they're no longer using.
That's you know, you won't want to cack a retire
out of the home. No, of course not. And that's
complicated in and of itself. But if there's other things,
But anyhow, that's good. That's good clarification in terms of,
you know why somebody may take that position.
Speaker 4 (38:44):
So right, let's take a quick moment. We'll be back
in a moment where with Amanda Morale. This is smart
Money News Talk, said B. Nine to six News Talk
said B. With smart Money with Amanda Morale, Actually time flies,
Amanda and I did mean to get onto that topic
about how much it costs to actually live a good
life in New Zealand. I mutual you have to earn,
but we'll have to save that for another time. Plus
the cost of weddings will make a note we'll make
(39:05):
a note about we'll discuss the cost of weddings, but.
Speaker 2 (39:08):
Just before maybe she'll find the best things in life
for free. Song somewhere, isn't it?
Speaker 4 (39:12):
Yeah?
Speaker 2 (39:13):
Exactly Beatles song?
Speaker 4 (39:15):
Possibly, I can't remember. I should ask you, No, I
don't ask. Just on that we got the I c R.
And the question around what that's going to do. I mean,
I think that is going to fall further if people
are fixing and all that sort of thing. Not that
we're giving specific financial advice, but we discuss it every
week on Smart Money. Always finished off with a bit
of a banter about the o CR. John Key wants
(39:36):
it to go down about one hundred points, But that's
not going to happen. What do you reckon?
Speaker 2 (39:39):
Well, you know, if it goes up, stays the same,
what goes down, somebody's not going to lose their job,
I e. Not like what's happening over in North America.
So yeah, yeah, and your own power. But so I
don't think that's going to happen here. Regardless of what
it's going to do. I suspect it'll you know, go
(39:59):
down a little better stay the same. So I'm not
expecting big tricks however you're one of your The first caller,
I guess was quite clever that they're you know, temporarily
on a on a floating just to see what it's
going to do, and then they'll make their make their move.
Floating rates tend to be more than fixed, but some.
Speaker 4 (40:17):
Are scared of flitting to floating. But actually it's just lit.
But it just it can be a day, it can
be a week, but just don't be scared of suddenly
clunking off that nice fixed rate you're on while you
make your mind out.
Speaker 2 (40:29):
Fair enough for me to say that, well, yeah, I
don't think you could. There's too many us here, but
I think you can't do it like when you feel
like it, for example, but if you're coming to the
end of the term and you're just needing to pause, Yes,
so there shouldn't be any fear there. How I always
sort of agreees me that the floating rate here is
(40:51):
higher than the fixed rates because it's the opposite in
other countries. Yeah, but I would would say that, I,
you know, shop around there too, because you know those
one key wes have a provider that chooses four point
eight for their floating, which which is way lower the
most floating rates, so be competitive.
Speaker 4 (41:08):
Shop around, shop around, Haggle and Hagel Hegel, thank you
so much for your company. Everyone. If you've missed any
of the show, go check out the podcast on News Talks,
A bet, Dot Coded and zero on iHeartRadio Radio, and
Amanda Mourn Love You, see you. We'll catch up next
on Okay. Sunday at six is next thatt You So.
Speaker 1 (41:30):
For more from the Weekend Collective, listen live to news
Talks it Be weekends from three pm, or follow the
podcast on iHeartRadio
You're listening to the Weekend Collective podcast from News Talks.
Speaker 2 (00:09):
B is coming.
Speaker 3 (00:16):
Please dolcomes appearance.
Speaker 4 (00:42):
Yes, welcome back, Tim Beveridge. This is the Weekend Collective
and this hour is called Smart Money, What Your Cause
on eighty ten eighty in text on nine two nine two,
and we're going to kick off probably combine these two
issues actually because the number of mortgage holders are refinancing
their loans is the highest ever recorded, and we're going
(01:04):
to dig in to that. Why people are doing What
are the outside implications the other options? More than three
and a half thousand borrow, God, I can't even speak.
More than three and a half thousand Borough was refinanced
in June and experts are expecting to see the trend
continue throughout the year. But with the cash rate being
at its lowest in a while and wide, now, what
(01:25):
are the implications anyway to discuss that? And also I
think it all ties into the question of just I
don't know, I come on thinking of that song money
is too tight to mention? Now? Who is that? Is
it talking heads or something? Money is too tight to mention?
But there's an ongoing conversation a bit about and if
you're refinancing often because you need a bit more money.
You need to I don't know, you need to readjust
(01:47):
your your settings. But the question around what it really
is to live a good life in New Zealand and
what does it cost, We're going to dig into that
a little bit. I'll flesh that out a bit more.
But before we do, finance specialist and commentation to Amanda
Morale is with us today. Amanda, how are you going?
Speaker 2 (02:07):
Goodim and a belated congratulations to Tyran. We're going to
talk about the personal finance of weddings after she's from financing.
Why have we not a wedding scenario? But we'll save
that for another one.
Speaker 4 (02:20):
She's spent I don't know, she probably what she spend
about one hundred and fifty thousand year.
Speaker 2 (02:23):
She smart with money. I know she did it on
a shoes.
Speaker 4 (02:27):
During Why did we I'm going to write a note Tyra?
Can you it's now Tara Ward? Of course I keep
saying Tyra Roberts, but she's going with her married name.
And you were trawling through the the wedding photos, which
I've mentioned countless times on the show, but they are lovely,
so I likely.
Speaker 2 (02:41):
That people are still getting married, and also, you know,
because it can be very expensive. So but we'll come
back to that next time I on the show.
Speaker 4 (02:49):
I'm always tempted to throw everything out and talk about
it now. But anyway, let's not, because we haven't quite
prepared for that. But actually, let's just the refinancing their loans.
And I guess there's refinancing, which is refixing because your
interest rates come up. Then there's refinancing, which is I
don't know, borrowing a bit more money or slowing down
the rate of payment or changing what you're doing. And
(03:09):
that's gone up. I'd have to say, I'm not surprised
it's changed, but the highest ever recorded sounds grim.
Speaker 2 (03:19):
Well, it's not entirely surprising, is it, Because the cost
of living has gone up, right, and as there's an
opportunity to you know, go to a lower interest rate
because people are struggling so much, they're helping to get
more cash in hand so they can fasimably live. So
it actually does go hand in hand with that other
sort of sidebar philosophical question you posed as well about
(03:40):
you know, what it takes to have a good life,
because whilst some people are going through this exercise they're
opting to take, you know, the difference between what they're
going to save and spend it. Some need it for
survival and other people are just using it purely as
a strategy to kind of like get the monkey off
their back.
Speaker 4 (03:58):
What is actually let's define what refinancing is, because technically,
if you've had a you know, your interest rates being
seen for six months and you refixing it, is that
refinancing or is that just refixing your right because I
would have thought refinancing is like, okay, I needed a
chat with the bank because you know, we.
Speaker 2 (04:16):
It's horses for courses, so you can do multiple different
things when you know the term comes up. Or some
people don't wait for the term to come up. They
choose to break it having done the mouth and decide that,
you know, they're better off paying the penalty to break
the mortgage and go with another bank. But in terms
of refinancing, you know, some people will elect to you know,
(04:37):
they simply need more money to get to get by
with living. Other people want to have more flexibility, so
they chop and choose and get a floating and a
fixed rate sort of split. Other people want to take
equity out of their house so they can you know,
do get married, for example, or do some home rennos.
(04:58):
So there's a number of reasons why people do they
tip it. Typically will do it as they're approaching the
end of you know, the term that they had set
and we've seen that that that's coming up, and people
have been under a lot of stress and pressure recently
with rates being quite high relative so soon after after
the COVID sort of you know, record lows.
Speaker 4 (05:19):
So the headline of refinancing highest ever recorded. It sounds
like something that just rolls over anyways, And I mean,
is this really a concerning step?
Speaker 2 (05:27):
Well, I think what they're speaking to is people actively
choosing to look at maybe doing things differently, which I
would celebrate because a it means people are getting less
apathetic or less complacent about you know, the cost of
boring money, and the cost of boring money long term
is you know, incredibly high, and most people will pay
(05:48):
more in interest payments than what they paid on their
actual house when they look at the life of you know,
paying off the mortgage. So I think a on one hand,
it's a bit of an alarm bell about people are
you know, have this urgency to look at how to
do things a little bit differently because they have to
where they want to. And on the other hand, you know,
(06:09):
you know, it's an opportunity for people to kind of
get more educated about taking a more active approach about
managing their money, which their mortgage is going to be
I guess costs.
Speaker 4 (06:18):
I really looked at the article of this and it's
and one of the stories is a record number of
New Zealand mortgage holders changed lenders in June as well,
so it's they've actually changed too, they're borrowing from.
Speaker 2 (06:29):
They're getting more competitive, which is fantastic. So again people
a little less apathetic. I think last week too, there
was some news about more Kiwis were switching banks as well,
so people are getting you know, this is probably thanks
to you know, AI and other comparative tools where people
can actually now get their hands easily on comparative information,
(06:52):
whereas in the past it was a big chore phoning
around and walking. You know, now there's never been a
better time to have more transparency around.
Speaker 4 (07:00):
How much money Actually. That's it's interesting because we also
so like in fact, this sort of overlaps a little
bit with what we're having a chat with Debi Roberts
about mortgages and if you're an investor, how it's not
a bad move to have quite a few different lenders,
because there can be problems if you've got one bank
and you want to sell one properly and they want
(07:21):
to they can do other things with their money. But
as part of it, we talked about the convenience of
being with one bank and the fact that we're often
creatures of habit. People get their bank and they get
their mortgage and it just all looks a bit too
hard to think about shifting, which means that it is
(07:43):
maybe it is kind of surprising that more people are
doing it because they're just thinking, well, they're not worried
about loyalty, they're not worried about convenience. They're just worrying
about the deal.
Speaker 2 (07:50):
And that's all you should be worried about, because the
bank is not worried about anything other than them getting
the best deal for them out of you. So I
think borrowers need to be certainly more informed, more active,
more passionate about this issue and get the best bang
for their back. One thing I have seen, and you
see it particularly among first home buyers is you know,
(08:12):
they're younger, they're a little bit nervous, they're not quite
as bullshy, and you know they take you know, the
first or second offer that comes along without really pushing
for a better rate, and so they mess out potentially
in an opportunity to get a more competitive rate, but
just because they're a little bit too shy to ask
for one. And so you know, that whole thing that
(08:32):
you've got to accept the rate, first rate that gets
offered to is that's out the window now. I mean
you really can. You've got some ability to arbitrage and
you know, pit these banks against each other so you
can carve out the best possible interest rate because it
does make you know, tens of thousands of dollars of
difference over time.
Speaker 4 (08:49):
Which banks actually do you think do better at keeping
your custom But I look at my bank, I'm with
I must well, we don't have a massive amount of
a mortgage and the idea of having to go through
refinance and would be a pain. But they have made
it really easy because you see the advertised right and
then such and such and they sell then they just.
Speaker 2 (09:07):
Say match it.
Speaker 4 (09:08):
Well, they don't even do that, they say beforehand they go, look,
here's the right, but we'll give you yours for this
without even me even asking. And I just I think
that's smart because I just go, okay, click yeah.
Speaker 2 (09:18):
But you know, but how much better could they do
if you actually phoned around or visited a couple other
locations and they came back with something even lower and
then you drive them back? So you know, you have
to be sounds like buying a used car or your
used car SYSM. But like, honestly, I would not underestimate
the power of your negotiating ability when it comes to
boring big sums of money. There is movement in the market.
(09:39):
You just have to be. If you're not good at
it yourself and confident, recruit somebody who has to advocate
for you.
Speaker 4 (09:46):
Actually would love to hear from you if you've refinanced.
Did you do it? Did you haggle or did you
just look at whatever website you go to to find
I know with the one that comes to mind for
me is Andrott, Curtit and Z. But it's not the
only website that tells you about the intant mortgage rates.
I should back up. My one is that I because
of the job I do. I've had proper the investors,
and I was put onto a mortgage broker who's really good,
(10:09):
and I got in touch with him and said, oh,
by the way, the I've got to refix my mortgage.
And he said to me, how much is your bank offering?
And I told him, phone's gone off in the background.
Just turn that but set to silent.
Speaker 2 (10:29):
Anyway, phone foul.
Speaker 4 (10:30):
I better start this story.
Speaker 2 (10:32):
What happens in the sweitch from up to android?
Speaker 4 (10:35):
And don't know how have you gone to android congratulation?
Speaker 2 (10:40):
You know, in an effort to save money. I had
a bit of a phone foul, So I apologize. I'm
still trying to master my Android.
Speaker 4 (10:47):
You'll love it. You'll love it. No, have to get
back on this. So as I was talking about refinancing
and I spoke to the mortgage broker who I had
some dealings with through one of our guests, and he
actually said to me, what's your bank offering? And I
said X and he just said, okay, I can't any
bit and that just take that. That's great. They're obviously
(11:07):
but I don't you know, they're obviously being aggressive.
Speaker 2 (11:11):
And they only you know, they can only go as
low as or permitted to go, so, you know, but
there's a little rg bargie back in the forth. I've
done it with like term deposits, and you know, you
just kind of it's the same thing with salary negotiations,
the exact same approach. You're not going to just take
the first you know, salary, you know offer, that's you know,
you got to go in there and and fight your corner.
Speaker 4 (11:32):
Are you good at hagling?
Speaker 2 (11:34):
I never used to be. But you know, maybe it's
just an age thing, but you do, you do get up.
I mean I don't like to do it at the
market or something, those kind of things.
Speaker 4 (11:43):
Where you say how much of a cross on and
they say A seven dollars?
Speaker 2 (11:46):
You know, when you're travel you're traveling and you already
know you're you know, just so far ahead with your
dollar versus the local. I don't like that. But but
when it comes to things like you know that count
you know, meaningful big sums of money, I have no problem.
Speaker 4 (12:01):
We'd love to hear from you if you've refinanced, and
you've in particular you've shifted lenders. With an increasing number
of people shifting lenders, and Kelvin Davids from totality and
formerly known as core logic. He's put it down to
simply people, you know, they're doing better research, they're monitoring
the rates in the terms, and it's changing the game
(12:21):
for lenders, I guess. But if you have refinanced, what
was the journey, because a lot of people will still
look at their mortgage and go on with the bank.
Let's click on the link. Oh they're offering me this.
Oh that'll do. I can't be bothered. As I've said,
I'm not quite like that, but close.
Speaker 2 (12:38):
Well there, you know, but it's a personality thing. I
was working I do some mentoring, mentoring with a young influencer,
and you know, she wasn't claiming home expenses. She was
meant to be zeroes. He read it on something and
she said, oh, I can't be a lie. I'm like, listen,
I would be doing this in a heartbeat if it
was me. So come on, take an interest. And so
we managed to like, you know, push her heart a
(13:00):
little bit. I think, get these things all reconciled, and
she saved herself five thousand dollars. All of us. Sudden
the penny dropped and she thought, oh, it is in
my active interest. To, you know, take a boulderstand, to
take a few minutes to do something which really didn't
take long at all. But initially she had this mental
kind of attitude about I can't be bothered. Oh it's
(13:21):
going to be too hard, Da da da da. So
you know, it's really you got to overcome that mental
hurdle in the first instance to get to the gravy,
you know, and it's worth it, Sugar.
Speaker 4 (13:32):
It sounds like a good topic for a book, getting
to the gravy buyer. Amanda Morale, I like that. Let's
take some calls. If have you refinanced, if you shifted banks,
and what tip the scales for you? Was it another
I don't know how much actually would it need to
be to make it worthwhile, because if it's point one
of a percent, depending, I guess a few mortgages, half
a million bucks even that's worth it.
Speaker 2 (13:51):
Oh for sure. That's where those calculators will show you
the point one difference what it makes, right.
Speaker 4 (13:55):
Let's it's got some calls, Anthony geta.
Speaker 5 (13:59):
Ohkay, gosh, I've got a pretty interesting story. It's from
the last couple of months. Am I allowed to mention
names banks.
Speaker 4 (14:09):
Individuals out of it if you want to mention a
bank or something. But I mentioned Dave Smith from such
and such bank.
Speaker 5 (14:14):
You okay, Well, so I can mention the banks.
Speaker 4 (14:18):
Yeah, it's right, as long as you're not going to
slag them off. But you know, yeah, we'll look I mean,
just don't defame them.
Speaker 5 (14:25):
Yeah, no, I'm not going to just fame that. This
is this is a fact. So yeah, So me and
my partner we have a couple of rental properties. So
we've got approaching sort of three million dollars worth of
debt on those properties, and they have recently come up
for renewal for the for your work fixed for a
(14:46):
couple of years. And you know, you get the message
to say, oh you know your your rate's going to
go to theirs them blah blah blah. Anyway, I rang
them up and said, oh, look, what's the best deal
you can do, thinking that I could get a better rate.
They said, oh, look, we can give you a bit
of a discount on the rate, and we can give
you I think it was about three or four thousand
dollars cash back. And I said, oh, yeah, that sounds
(15:07):
about right. And I nearly said gave it the okay,
and then I got talking to a friend of mine
who said, oh, you need to give the A and
Z a call. They are offering one percent back on
your total borrowings and they'll match the rate. So do
the math. That's thirty thousand dollars. Well thirty thousand, just
over thirty thousand dollars is what they offered them cash back,
(15:30):
and they matched the rate. I think it was four
point eighty five for eighteen months or two years. It
was huge.
Speaker 4 (15:37):
It was huge. The cash back, it sounds great, and
I remember how many people go for this cash back
as opposed to going out. I mean, and I might
take what else are you offering?
Speaker 2 (15:48):
But good on you for taking the extra going the
extra mile there while worth it.
Speaker 5 (15:52):
Yeah, well it wasn't the extra mile. It was easy.
And that's what I don't think a lot of people understand.
I understand it's a big piece of debt. But I
was mildly peeved with the B and Z because I've
been with them since I was seven years and I
made that point to them and I said, look, you've
got to you've got to move. And they demanded to
see the email from the person at A and Z.
(16:13):
And then they still wouldn't move, and they still didn't
match it. They got to about twenty four to twenty five.
I said, guys, that I'm going to move for that
five thousand. I said, oh, it's going to it's going
to cost you five grand in legal feet and I said, look,
i'll decide what that costs me. My other half's the lawyer,
so it doesn't cost much at all. But they weren't
prepared to move.
Speaker 4 (16:33):
So well, I guess they lost because they they didn't sound.
Speaker 5 (16:37):
Like yeah exactly, but I just I just wanted the
as many people as I could let's know about this
particular scenario, because it's twenty five thousand dollars after tax.
That's for a lot of people, that's nearly half a
year's salary.
Speaker 4 (16:52):
So yeah, yeah, that's it's Actually I think that the
other mistake that you're existing bank made for with you.
I don't know it was them asking for proof of it.
Speaker 5 (17:04):
Yeah, that's what.
Speaker 4 (17:06):
It's a good movie either because they can either do
you a better deal or they can't. And it shouldn't
matter what some of it unless they go, oh, well,
we we'll match it, but I need to I.
Speaker 2 (17:14):
Don't know, Well, I some evidence that there.
Speaker 5 (17:18):
You know, yeah, well I probably would have done the
same thing, but I mean, ultimately that was I'm going
to be twenty thousand. I haven't made my decision yet,
but it's sorry, we haven't made our decision yet. But
based on that, you know, we got twenty thousand dollars
out of the band said if we stick with them.
Speaker 4 (17:35):
Oh we get this is in play right now. Five.
Speaker 5 (17:38):
Yeah, so this isn't played out all. I haven't fixed
anything in because the rates have been dropping. So we're
just one floating at the moment until the next step
O cr and then we'll make our decision on what
we want to do. But yeah, that's that's a significant saving.
And you know, as I said to the person when
when I said it beings and I said, I'm going
to let every one I possibly know about this, about
(18:02):
this conversation and what's happened here, I said, well that
steps up is still perfect. Perfect A lot of money.
It's a lot of money for you, for you, for
your listeners to say that.
Speaker 4 (18:17):
You can go on demand and download the audio for
this and go well, I've told a few people.
Speaker 6 (18:21):
Thank you for calling and sharing that.
Speaker 4 (18:25):
Well, you got to your chips with them. Now think
it can't get any worse. But look, actually, well I
don't you know. He mentioned the bank and everything, But
I guess every bank has its ups and downs in
terms of how it deals with people, and but there
will be banking satisfaction surveys. I guess all that.
Speaker 2 (18:43):
But it's a perfect example of how lazy the banks
can be too. So here's another example. Because I spent
years working you know the keis of a provider. You know,
people were switching. Then we'd get these stories coming back
to us about you know, for the first time ever,
my bank called. These are people who have their us
over the bank to say what can we do to
get your switcher persuade them to switch? And it would
(19:03):
be the first phone call were actively hard from the bank.
So it's like, Okay, I've had my money with you
for you know, thirteen years, but you're choosing to only
now reach out and act like you care about me
as a customer. So it's kind of like it's a
bit of a message to wake up to you need
to be better job servicing your customer.
Speaker 4 (19:22):
That's any company. Actually, I mean I won't repeat, I
won't repeat the company because I've given them a good
old bashing on other hours of talk back. But I
was with this phone company with my phone mobile phone,
and I used to pay quite a lot for it.
And then it was Bell South or two degree Clear Communications,
and which became two degrees or something came in and
I thought, you know what, that's a great offer. I'm
(19:43):
going to check it out. And I switched, and all
of a sudden, the company that I was with offered
me a great contract, and I literally just said, I
was just like, there's no way I'll never do business
with you again because you've shafted me until you suddenly
realized maybe I should be bit friendly and competitive. They'll
never get me back. And the fact that it takes
another offer for us to go, oh okay, we can
(20:06):
do better. Sorry, But maybe that's because there's a part
of me that deep down is a little bit you know,
I don't know, we're a bit vindictive, well unforgiving.
Speaker 2 (20:16):
Yeah no, but it works for you in that case.
I mean, it's almost like they should teach kids, you know,
coming out of high school or you know, university or
whatever about you know, the art and negotiation.
Speaker 4 (20:27):
I wonder, I mean, he was Anthony was talking about
quite a big borrowing there for me, three million dollars
worth of borrowing. I mean it's probably worth the bank too.
If they were going to, you know, do a particularly
sweet deal, than three million dollars of borrowing probably would
do the trick, wouldn't it.
Speaker 2 (20:43):
Absolutely. Yeah. Well, I mean make no mistake. Banks won't
do anything that's not in their best interests either, So
it's not like they're losing out of the equation there either.
But the other one lost more, you know, because a
they'll probably move all their bank accounts across as well.
Speaker 4 (20:57):
So we'd love to hear your story about refinancing. And
actually the other is the conversation evolves the cash back
does does that impress you as a tool for either
sticking with your borrowing or going with a borrower? Because
in Anthony's case, it was a fraction of what he
was able to save himself if he'd taken the money,
which sounded a bit glossy at the start. I'm always
(21:18):
deeply suspicious of cash backs because I think, why are
you giving me cash?
Speaker 6 (21:22):
Pack?
Speaker 4 (21:22):
Just give me a cheap cheap of mortgage.
Speaker 2 (21:24):
Yeah, I agree, I'm not enticed by you know, free
iPads or one thousand dollars you know, for the fridge
or whatever like in the context of a mortgage and
maybe a better rate. It's really nothing. But you know,
again it's the psychology of it, and they understand that
some people love that idea of free money and if
they even have, you know, so they just go for
the first little carrot that's dangled in front of them
(21:45):
without doing, you know, a deep dive and looking at
the larger cost of boring over time, which is what
you need to do, which is why those calculators, the
comparison calculators, and you mentioned it earlier, but interest dot
coded zed has a wonderful calculator where you can set
across the rates of two different mortgages, the amounts whether
you're paying for it nately or monthly or rears in advance,
(22:08):
and do a really great comparison which will show you
the breakdown and the principle and the interest over time.
And again this is where the point one difference can
make a huge difference over time. So it's really well
worth your time. And it doesn't even it's not that hard.
I think a lot of people used to say they
couldn't do this, or they weren't good with money, or
they didn't know how to do spreadsheets. But honestly, it
has never been easier to do this stuff.
Speaker 4 (22:29):
Now I've got another way you can do it as well,
which we'll share it chat GP Oh we've talked about.
Speaker 2 (22:34):
Yeah, yeah, your new finance advisor.
Speaker 4 (22:38):
I'll tell you that. I'll talked about that after the break.
We do have to take a break, but we talk
about your stories about refinancing. The news is that the
record number of people are actually switching lenders, not just refincing,
but they're switching lenders. More than three and a half
thousand borrowers refinancing those with loans worth a total of
two point five billion in lending and catality have revealed
that there's this huge number of people have shifted lenders.
(23:00):
Are you one of them? What did it take? But
also what does it take to sweet talk you into
a new deal?
Speaker 6 (23:05):
Is it?
Speaker 4 (23:06):
Have you fallen for any track or did you simply
go in and do the hard yards and say, listen,
this is what I've got with my bank. Haggle hag
will haggle, will haggle, deal done sold eighteen eighty And
I probably have told the story about my chat GPT
calculating my mortgage, but actually tell you what it was.
It's one way of doing things. Twenty nine and a
(23:27):
Manda brows with us. By the way, but you recognize
that friendly Canadian accent.
Speaker 2 (23:32):
You remember from Canadian or you never with apologies to
my America.
Speaker 4 (23:37):
If somebody tells you that Canadian, don't forget it and go, hey,
where are you from? Are you from New York or something?
I don't know why I put in an accent that
was there. We go, it's half past five. Back in
the my.
Speaker 2 (24:05):
Come in.
Speaker 4 (24:08):
One of the lyrics. We're going to kick the song.
This is a song requested by a man of brow,
which is my guest right now. And smart Money. We're
talking about refinancing mortgage and what does it take for
you to switch a lender and are you a bit
lazy or do you go with the actually aggressively chase
the next offer or you were seduced by cash back
taking your calls on this? Oh, by the way, just
before we go to John, so my when I was
(24:30):
I didn't refinance in terms of I was just setting
a new rate and you can change your payments and
how much you're putting in there, and I just chat GPT,
which I pay for the sort of pay a bit
extra again to get them, you know, and I do.
I quite like the talk one and you chose and
she's good. She goes oh hi to him. She goes
oh and ah when she's talking. And I said, look,
(24:51):
this is my mortgage. Can you tell me the difference
if I pay it off at this rate and what
difference it makes and my mortgage if I pay it off,
and if you've got any other scenario so I can
consider at this interest rate. And it goes yeah, if
you do that, and literally comes back and it explains
it in English that if you pay x amount more
per month, this is what it's going to save you
in time. This is much more interest and you can
(25:13):
I can just ask it and plain English. I did
cross check because so it wasn't hallucinating. But the funny
thing is she goes, uh yeah. Anyway she speaks colloquially.
Speaker 2 (25:23):
It sounds like you're falling in love with her. Too careful.
Speaker 4 (25:30):
I think I'm under control.
Speaker 2 (25:32):
You know, they're wonderful. I've been using it for all
manner of things, Like it was a bit nervous before,
but for for finite I mean you want to double
check things, don't, you know, take everything. Don't act on
that as a small piece of advice, but it is
incredibly helpful, particularly for people who are a little bit
uncertain about you know, scenario testing or this or that. So,
(25:52):
and then they don't have to feel like they're asking
a stupid question.
Speaker 4 (25:55):
Yeah, it's huge, right, And she'll even tell you it's
not a dumb question. I say, is this a dumb question?
Speaker 2 (25:59):
Go?
Speaker 4 (26:00):
No, of course, not dumb question.
Speaker 2 (26:02):
Getting a little bit suspicious, does she haven't?
Speaker 4 (26:04):
N I don't worry when I try and have a
conversation in French as well, and she'll switch like that
and then I don't understand what she's saying. AI amazing technology. Anyway,
let's carry on show it.
Speaker 6 (26:17):
John, Hello, Yeah, good a, how are you good time?
I'm I'm from South and our parents were clients of
the South and Building Society, and so was I am
my partner you know for sixty seventy years. And anyway,
after we were tired, we had sold a property and
(26:37):
then we went to them and said could we buy
a three hundred k for one year? Because we got
over a million dollars here that you can take. They
didn't want to know us, right. Oh, and like the
even the female the ladies lender attitude was totally different.
(26:58):
Previously she was very friendly and positive fleet and then oh, well,
try a second tier lender, and Denise did that, and
and it was Denise and the end said I can't
do this anymore, John, because it's like abuse, because the
(27:19):
second Linda kept wanting more and more intrusive and seventy
and we just said no.
Speaker 2 (27:25):
Sober did you say it was with the building Society?
Speaker 4 (27:29):
Yeah?
Speaker 5 (27:29):
Yeah, building?
Speaker 4 (27:30):
Yeah.
Speaker 2 (27:30):
I thought, well, the information I've heard on a lot
of the societies that this would be a kind of
community based in a little bit more amenable to, you know,
working with their clients. So that would contradict to that theory.
Speaker 4 (27:42):
What didn't what didn't they like about trying to do
business for you?
Speaker 6 (27:47):
I've since found out we've got good friends in christ
Church and they've got a hell of a lot more
more assets and money than we've ever had. And they
only wanted to buy ten thousand to fire ten thousand
from the bank, and they wouldn't give it to them
because they were both retired and they've probably got five
six mellion dollars of us.
Speaker 4 (28:06):
They like income. That's the banks do like income. They're
not happy just to go well, we'll just They don't
like to just bank on the assets, do they.
Speaker 6 (28:15):
And that's why I've run because they will lend people
two or three years before they retire and things like that.
But most people don't know if you're coming up to retirement,
you're screwed when you're sixty five.
Speaker 4 (28:28):
Yeah, it's more challenging, I gather because they don't know.
Speaker 2 (28:30):
That your risk goes up. But with considerable assets like that,
did you add a curiosity? Did you ever try banks
any of the main banks?
Speaker 6 (28:38):
No, we didn't know. We didn't.
Speaker 4 (28:40):
But is that still on the count.
Speaker 6 (28:44):
No, No, it's okay, it's all done now.
Speaker 4 (28:46):
But oh, how's it all done?
Speaker 6 (28:48):
Then?
Speaker 4 (28:48):
What's what's the end of the happy it?
Speaker 6 (28:51):
No? No, we don't. We don't need to go to
them anymore like Attris it's fine and or something. No,
not enough for that, And it was it was a
very traumatizing experience for Denis and I because we've been
(29:11):
loyal clients forever and when you get treated so differently
when you're sitting in front of them. All trust is gone.
Speaker 4 (29:22):
Yeah, I'm surprised that. I am surprised that in this
day and age, John, that people and we were people
where people are having these uncomfortable customer experiences.
Speaker 2 (29:33):
I thought building societies would offer more in terms of
I thought the relationship building.
Speaker 6 (29:38):
Yeah, but they are banks now, I think, aren't they
they another?
Speaker 4 (29:41):
Were you nice and friendly? Did you smile and sort
of be friendly or you were in a difficult Yeah?
Speaker 6 (29:49):
No, no failed payment, nothing like that perfect credit record
that was my parents, right, and but it's indicative of
what they are doing these days, right.
Speaker 4 (30:01):
M oh well, hey, thanks for sharing that with us. Yeah,
I'm surprised that. I mean, you're always going to get
negative customer experiences sometimes because the world's not perfect. But
it does surprise me that.
Speaker 2 (30:13):
Well, I mean, usually everything's built around risk for lenders.
Speaker 4 (30:17):
You know, if there's truck slides of assets.
Speaker 2 (30:20):
That's kind of puzzling and it's just bad bad customer service.
Speaker 4 (30:23):
Almost wonder if there's a certain tier of response when
you get when you're dealing with someone who can only
say no on certain conditions, whether you need to say,
can I speak to someone who's I mean, I had.
I mean just I don't mean up the chain, but
you do, mean you want to speak to it and say, look,
I'm not complaining about you, but I suspect you. You know,
(30:44):
I want to know if I can speak to someone
who would have the authority to look at a different Yeah,
I mean, have you ever done that?
Speaker 2 (30:50):
I have? Actually, I know I'm a bit of a complainer,
but I don't take no for announcwer, so you know,
and you're usually rewarded for that. But again a lot
of people are too polite or meek or whatever to
kind of push it a little bit. But you know,
more often than not does reward you.
Speaker 4 (31:06):
But you can be polite while you're still laughing.
Speaker 2 (31:10):
No, no, no, I mean it's like anything. Sometimes it
just depends on the day. Like unfortunately, maybe that was
that individual that they that the last Color dealt with
who just was on on off day or made a
bad judgment. So it is worth pushing up the food
chain ups.
Speaker 4 (31:24):
I mean, we can't talk about to John because he's
gone now, but actually there's probably something we could have
dug into. Was did he think about asking further up
the food chain? I hate you someing those analogies further
up the food chains. It makes people further down. It
sounds like they don't matter. But authority, well discretion.
Speaker 2 (31:43):
Yeah yeah, yeah, and you know, and you like to
hope that somebody is in a management capacity has been
put there for a reason because they you know, got
you know, more knowledge or more influence or better people skills.
So yeah, that's surprising to hear that story. But happy
ending for this guy. They didn't enough to borrow three
hundred thousand dollars at all, So there you go.
Speaker 4 (32:02):
Yeah, exactly the bank. We'll come back and just talking
about refinancing your stories as well. But what's enticed you
or motivated you? And as they're all, have you chased?
Have you actually gone to the bother of chasing a
better deal? Because more and more people are doing it,
switching lenders, not just you know, restructuring what their payments are.
They're literally saying bye bye to Bank A and going
(32:23):
to bank B. And have you done it? And what
motivated you to do it? And in fact, you know,
I'd love to hear about your good news stories on that.
On eight hundred eight ten eighty I did talk about
where we're gonna have a chat about how much it
costs earn a good to have a good life in Newson.
But I think we might have to save it for
another time. But we'll see how we go. It is
eighteen minutes to six. This is news talk, said b
(32:45):
back in the moynature.
Speaker 2 (33:03):
When a.
Speaker 4 (33:20):
Little bit of money to not mention, of course, it's
that's that's simple minds. That's right. It wasn't talking heads.
I don't know why I thought talking heads when I
mentioned it earlier. So I simply read God all over
the place today. Well you know what that happens sometimes
on a Sunday evenings. Yes, give you, Amanda, Thank you,
Amanda morrale. Hey, one of the issues that people need
(33:42):
to think about before they do refinance, because there's one
thing to say, you're jumping ship. What's the story with
break fees and not getting bitten in the you know,
on the behind. I was going to say bitten on
the ass. I'm not sure how that plays on radio.
Speaker 2 (33:58):
Yeah, So just just before we go into fees, I
think anybody who's kind of approaching or looking at refinancing before.
Speaker 4 (34:04):
They I'll not just get eat a lower your microphy
because we've just got a bit of.
Speaker 2 (34:09):
But no, I think before you kind of go down
that pathway, maybe you just want to like sort of
do a metasearch and think about your reasons. So, what
would be your primary reason if you're going to go
to refinancing intriger money? Well, you know, is it because
you just think it's trendy, You're pissed off at your bank,
you know, or are you trying to release equity of
the home?
Speaker 6 (34:28):
You know?
Speaker 2 (34:28):
So what is your purpose?
Speaker 4 (34:31):
Because if you're angry with your bank, that still might
not be anything worth paying for. You've got to work out.
Speaker 2 (34:35):
I'm pretty sure that most people are walking across the
street to a different bank or doing it because they're
getting a better rate. So most people are acting in
their own interests of trying to save money. But again,
you know, it could be a matter that you're trying
to release some money so you can you know, pay
off other debt that you have, because you know, maybe
it as you want to if you've got to be
sitting on a bunch of other debt that you want
to like consolidate that debt under your mortgage. So again,
(35:00):
zoom out and establish your primary reason for wanting to
kind of switch it up and then you know, start
doing your research on comparison rates. Yeah, but yeah, definitely
if you are breaking mortgage, the fees you have to
be aware of. I I did that in one instance
years ago when I paid off my mortgage and you know,
(35:22):
trying to get from them because I had a little
windfall and I wanted to put a pain, you know.
And then there's yeah, and that's the other thing is
that when you're again resetting the t's and t's, that's
one thing if you're thinking about getting a little windfall
or your sole trader and you get you know, lumpy
sums and you know, make sure that you have flexibility
(35:43):
within your mortgage or if that's of interest to you,
that you don't get punished.
Speaker 4 (35:47):
For that, because the punishments might exist.
Speaker 2 (35:50):
Oh, they're like they have a formula, and you know,
again getting that out of my bank at the time
was harder than pulling wisdom teeth. You really had to
because they said, well, it depends on the day, and
it's this very complex formula. Because I've been like, well,
I'm not going to do this if it's going to
be punitive financially. So at the end of the day,
it got the information and it was worth it too.
(36:11):
You know, you have to do the pros and cons of, like,
you know, paying that HT versus you know, what about
the mechanics action and the amount that you're paying.
Speaker 4 (36:19):
What about the mechanics of getting them to actually to
remove the mortgage from your title? So because they take
a mortgage, it's lodged against the title for your property.
How complex? I mean I should know this, but I don't.
I don't know, once once you paid it off, I mean,
is it complex to once to sign it and get
it removed from the title. So literally the bank is
(36:40):
not present.
Speaker 2 (36:41):
In your well when you no longer owe them money that.
Speaker 4 (36:45):
And they should just execute it automatically.
Speaker 2 (36:47):
There's no I don't think there's any big drama there.
Speaker 4 (36:50):
But get your lawyer to make sure.
Speaker 2 (36:52):
Yeah. Well that's the other thing with legal fees that
you know, make sure you're not going to get yourself
into any kind of trouble on you know, or cost
evaluations are legally mortgage Yeah yeah, so I mean, look
at it for all angles. Is sort of my advice
before you act too quickly. But again, the biggest thing
people can do to help themselves is to some of
(37:14):
those comparisons and like the first caller, don't take no
for announcer, or don't take the first deal that comes along.
Really explore that use a broker potentially. Just be aware
that some brokers have special relationships, so they're not like
casting a wide net with all of the banks. They
made only work with three or four, so some are
going to be I mean, you don't want it to
be too onerous, but you know, put in some effort
(37:36):
because you'll be rewarded for it.
Speaker 4 (37:38):
Actually, we've got a text here from an exce lender says, hi, guys,
as an ex lender, this was just on the core
from John I think was he had lots of assets
but not much income. And he says, as an ex lender,
one never lent to assets unless the debt servicing fitted
the criteria. And no banks like a mortgage sale. It's
a basically sensible lending rule. No one would want to
(37:59):
see retires lose their home or question marks. I think
they probably is something like that. But US banks don't
like mortgage sales. We don't even see them these days.
They seem to bend over backwards to avoid filling the property.
You know, publications with black and white photos.
Speaker 2 (38:15):
I can't I didn't get from John what the ourset
he has had bad a million dollars in assets. It
might have been the family home, but equally they might
have other, you know, oursets.
Speaker 4 (38:23):
It could have been said five million, did I miss
I might have I might be confusing my callers, Yes, yeah,
but you.
Speaker 2 (38:29):
Know whatever tractors or something that they're no longer using.
That's you know, you won't want to cack a retire
out of the home. No, of course not. And that's
complicated in and of itself. But if there's other things,
But anyhow, that's good. That's good clarification in terms of,
you know why somebody may take that position.
Speaker 4 (38:44):
So right, let's take a quick moment. We'll be back
in a moment where with Amanda Morale. This is smart
Money News Talk, said B. Nine to six News Talk
said B. With smart Money with Amanda Morale, Actually time flies,
Amanda and I did mean to get onto that topic
about how much it costs to actually live a good
life in New Zealand. I mutual you have to earn,
but we'll have to save that for another time. Plus
the cost of weddings will make a note we'll make
(39:05):
a note about we'll discuss the cost of weddings, but.
Speaker 2 (39:08):
Just before maybe she'll find the best things in life
for free. Song somewhere, isn't it?
Speaker 4 (39:12):
Yeah?
Speaker 2 (39:13):
Exactly Beatles song?
Speaker 4 (39:15):
Possibly, I can't remember. I should ask you, No, I
don't ask. Just on that we got the I c R.
And the question around what that's going to do. I mean,
I think that is going to fall further if people
are fixing and all that sort of thing. Not that
we're giving specific financial advice, but we discuss it every
week on Smart Money. Always finished off with a bit
of a banter about the o CR. John Key wants
(39:36):
it to go down about one hundred points, But that's
not going to happen. What do you reckon?
Speaker 2 (39:39):
Well, you know, if it goes up, stays the same,
what goes down, somebody's not going to lose their job,
I e. Not like what's happening over in North America.
So yeah, yeah, and your own power. But so I
don't think that's going to happen here. Regardless of what
it's going to do. I suspect it'll you know, go
(39:59):
down a little better stay the same. So I'm not
expecting big tricks however you're one of your The first caller,
I guess was quite clever that they're you know, temporarily
on a on a floating just to see what it's
going to do, and then they'll make their make their move.
Floating rates tend to be more than fixed, but some.
Speaker 4 (40:17):
Are scared of flitting to floating. But actually it's just lit.
But it just it can be a day, it can
be a week, but just don't be scared of suddenly
clunking off that nice fixed rate you're on while you
make your mind out.
Speaker 2 (40:29):
Fair enough for me to say that, well, yeah, I
don't think you could. There's too many us here, but
I think you can't do it like when you feel
like it, for example, but if you're coming to the
end of the term and you're just needing to pause, Yes,
so there shouldn't be any fear there. How I always
sort of agreees me that the floating rate here is
(40:51):
higher than the fixed rates because it's the opposite in
other countries. Yeah, but I would would say that, I,
you know, shop around there too, because you know those
one key wes have a provider that chooses four point
eight for their floating, which which is way lower the
most floating rates, so be competitive.
Speaker 4 (41:08):
Shop around, shop around, Haggle and Hagel Hegel, thank you
so much for your company. Everyone. If you've missed any
of the show, go check out the podcast on News Talks,
A bet, Dot Coded and zero on iHeartRadio Radio, and
Amanda Mourn Love You, see you. We'll catch up next
on Okay. Sunday at six is next thatt You So.
Speaker 1 (41:30):
For more from the Weekend Collective, listen live to news
Talks it Be weekends from three pm, or follow the
podcast on iHeartRadio
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