April 18, 2026 • 41 mins
So you want a loan to buy a property.
The bank sifts through all the money that's gone in and out of your accounts going back an uncomfortable amount of time, and give you a number they're willing to lend you.
You think to yourself, the process is so long and gruelling, and they require so much of your usually private documents, that surely you can afford to meet those repayments - right?
Wrong.
LISTEN ABOVE
See omnystudio.com/listener for privacy information.
Listen
Watch
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talk
sed B.
Speaker 2 (00:31):
Yes, and welcome back to the week in Collective. This
is the one Roof radio show. And oh, actually that
song was chosen by our guest's daughter. Actually because I
was thinking, this is a youthful sounding song for us,
and I said to Tyroo's that and she pointed to
the to her to her right where the daughter of
my next guest is hanging out. Anyway, this is one
Ruth radio show where we want your calls on eight
(00:53):
hundred and eighty ten eighty text two. And what we're
going to talk about is money, money, money borrowing. So
you want to loan, I mean most people should be
interesting to know the number of people who don't need
to loan to buy a property outside of lotto winners.
But anyway, you want to loan to buy a property.
So the bank goes you know, we've all if you
(01:14):
bought a house. The bank goes through through the details.
They look at your invoices or you pay receipts or
self employed accounts or whatever. They look at what's gone
in and out of your accounts, going back for a while,
they give you a number that they're willing to lend you,
and you go, what how much? Because you know it
seems so grueling. You're thinking that they're going to be
a bit tight about it. But all of a sudden
(01:35):
the number comes in and I remember with us I
couldn't tell you what the number was, but I remember thinking,
oh my god, there's no way I would ever borrow
that amount of money, and wouldn't have considered I could
have met the repayments. But anyway, look, you might have
plans to just renovate or at another bedroom. You could
be planning to fund your kids through university. But anyway,
this is all effects what your monthly mortgage bill is
(01:56):
going to be. How did you figure out what you
would borrow. Was it simply tied to, well, we need
to get as much money as we possibly can just
to get into the market. Or if you had a
bit of flexibility, did you think, wow, we could actually
spend a lot more on a property, but it would
take us X number of months or years to perf
the mortgage. Did how much difference was there between the
(02:20):
amount that your banks said they would lend you, what
you thought you could borrow, and what you wanted to borrow.
We want to hear from you on eight hundred and
eighty ten to eighty and to discuss that and other
things along the way. He is managing director at Opea's
Mortgages and his name is Peter Morris. Norris should I
say Norris? And he's with me? Now get it, Peter?
Speaker 3 (02:39):
How are you going?
Speaker 4 (02:39):
Yeah? Good things?
Speaker 2 (02:41):
There usually is quite a is there often a surprise
for people in terms of how much they can borrow?
Or was I lucky that I didn't need to borrow
the max?
Speaker 4 (02:49):
Yeah? I think. I think is a real mixed there's
a youthful sort of owner occupies. Maybe first time buyers,
I think often want to push as high, high, as
high as they can, and we'll take what the bank
will give them. Yeah, And then those that have been
around for a while probably will be surprised much the
bank will give them.
Speaker 2 (03:05):
It's a bit of a nice It's an interesting one because, look,
all these things are subjective. You'd think that the one
thing there's this objective is the bank's take on it,
because they're the ones who they don't want it. I mean,
it's not in the bank's interest to lend you too
much and find that you can't meet the payments. But
then again, it's not in the bank's interests to lend
you something that you're going to pay off in ten
years either, So I mean they've got that responsibility to
(03:29):
themselves and not to have properties falling out because people
can't make the payments. But then again, I'm never sure
how to trust the relationship with the bank because they
make money from me paying interest for as long as
as humanly possible. But I must say my bank have
been quite nice to me about suggestions about paying off
the mortgage early. So I mean that's leading to the
(03:54):
question is can we trust the banks with what they
say about how much they lend to us? Is it
in our best interest? What's your take on it?
Speaker 4 (04:02):
Yeah, Look, I mean there's this little thing called the
rest Responsible Lending Code, which basically governs what the bank
some facts tells you in the name that they have
to lend you a responsible amount, and that basically means
that they have to assess things pretty strictly, and they
do that in various different ways. You've got what the
banks call their test rates, which is they apply sort
(04:26):
of two to two and a half percent above whatever
the going rate is. At the time, and they stress
test you at that to make sure that you can
afford your lending. If interest rates went that high. Right
at the moment they're about seven percent, whereas rates are
about four and a half to five and a half.
Speaker 2 (04:39):
How much did they go into. Look, it's a while
ago since we bought our house. In fact, I can
tell how long ago it goes. It's because my daughter
had just been born such fifteen years ago. So that's
funny enough. It doesn't feel that long. Makes me suddenly
realize I'm a bit of a grown up. But oh god,
it is fifteen years How much should have paid it off?
Never mind? He So I can't remember how much detail
(05:03):
they went into. And to be honest, I think we
were lucky that we got the property for quite a
good price. We had a reasonable deposit, and I was
self employed, which would have put us through the wringer,
but we did it on my wife's teacher's salary.
Speaker 4 (05:17):
And yeah, well fifteen years ago was twenty eleven. So
after the GFC you were and interest rates were.
Speaker 2 (05:28):
I can't tell you what they were. I don't know
what they.
Speaker 4 (05:30):
Were trending down, I believe I can't mean what we paid.
I was trying to think back to twenty eleven. I was.
I was working at the bank lending money at that point.
Speaker 2 (05:40):
So here's okay, I don't know where that where that
story was going.
Speaker 4 (05:45):
Well, I can tell you at that point, the responsible
lending code didn't exist. Okay, responsible linding codes come in
and things have tightened up a little bit.
Speaker 2 (05:53):
Well, I don't remember them looking at I mean, they
can see from our bank accounts, what I guess, they
can just see what their spending is, and that would
be it, wouldn't it. They would wouldn't have needed to
quiz us because they go, this is what you're lending. Sorry,
this is what you're borrowing. Here's your wife's income. We're
happy with that. But I do remember thinking that if
(06:14):
we'd taken out what we could have borrowed, we would
have had very little room for what I would call
to be described as discretionary spending.
Speaker 4 (06:27):
Yeah, I would say that, As I said, the responsibleition
code wasn't around then. I do think, and I think
back to my days of being a lender, and at
those times, and you call them the good old days,
you could almost get away with anything. We were lucky
years ago things have definitely changed a lot. We're moving
into a world now of open banking, where banks can
see everything that you do and very.
Speaker 2 (06:46):
Easily everything like what.
Speaker 4 (06:49):
Well all of you spending all of your account they.
Speaker 2 (06:50):
Are from other banks as well. Yeah, my Westpac credit card,
the A and Z could see what I'm what really.
Speaker 4 (06:56):
Yeah, whether you're transferring money off to accounts that they
can't actually see, they can see some spending habits. So
they're analyzing a lot of different things that they certainly
weren't fifteen years ago.
Speaker 2 (07:04):
It's funny. I feel I should not like that, but
I don't really mind that because I'm not. I'm not
someone I feel I've has got anything to hide.
Speaker 4 (07:11):
Yeah, look, I mean it's not as though they can
do that at any time.
Speaker 2 (07:14):
Yeah, let's see what you've got into that restaurant that night. Okay,
I thought you. I thought you. They can just do it.
Speaker 4 (07:22):
No, No, you've got to give them permission. If you're
applying for lending, you going to need to give them permission.
Speaker 2 (07:27):
Do you remember how long have you had your house for?
Speaker 4 (07:29):
Well, this particular one only about two years.
Speaker 2 (07:32):
How long since you bought your first house?
Speaker 4 (07:35):
For fifteen years?
Speaker 5 (07:36):
Oh?
Speaker 2 (07:36):
Same as me. Okay, let's look at the last one.
Do you did you? I mean, you can spill as
much of your own information as you want. But could
you have borrowed a lot more? And did that create
a temptation for you to get a really flash house
or did you actually fall for that temptation and you've
got the biggest house in part.
Speaker 4 (07:54):
Now probably a mixture of both somewhere in the middle.
Speaker 2 (07:59):
How did you make that decision for you on what
the bank thought you could borrow versus what you thought
you needed to borrow, because you know, I look at
our property of the week. Here's an example. Okay, property
of the week's in Taro, and we'll talk about it later.
It's beautiful, okay. But if I was moving to Tarog
and I was getting what I think we'd get for hours,
I would have to borrow quite a whack more. But
if the bank would let me have it, there'd be
(08:19):
a part of me which would be then I could
buy this house. And so did you have that journey
yourself about what we should borrow versus the house I want?
Or did you are you lucky enough that you went
I've got the house I want?
Speaker 4 (08:33):
Worry No, not so much, not so much. We were
we were moving from from Koumu to central all so
it's quite a difference in price points. And no, we weren't.
We weren't needing to Oh well, we kind of needed
to take what the bank would give us.
Speaker 2 (08:48):
Okay, So it wasn't a case. Okay, So that is
a bit of a change. Yeah, because if you're moving
to one of the central sort of suburbs, then it's
a bit different. Did you have that did you want
to max out you're borrowing or what was your approach.
Speaker 4 (09:01):
To No, personally, not, because we've got other things we
want to do as well.
Speaker 2 (09:03):
Yeah, because if.
Speaker 4 (09:04):
You max it MAXI be borrowing out on one property,
then you remove your ability to do anymore.
Speaker 2 (09:10):
So you're the guy opus mortgages, right, So how do
you approach, you know, advising customers on this.
Speaker 4 (09:20):
Yeah. So I mean, like I said, the banks have
governed by their responsible in any code. I think, to be
perfectly honest, I think it's really difficult that these days
to borrow more than what you're actually able to.
Speaker 2 (09:32):
Yeah, uh is it? That's good to know because I
considered I would have been able to borrow way more
than I could have couldn't affwarded? Yeah, and is that
just because it was fifteen years ago?
Speaker 4 (09:42):
Things have changed a lot. We've got you've got the
test rates, we've got the Reserve Bank debt to income ratios,
which you know, based on those test rates, you could
actually borrow sort of seven to seven and a half
times your income. But if you're buying an under occupied
the Reserve Bank is going to limit to you to
six times.
Speaker 2 (09:57):
So six times your net income too is a gross income.
And that's an interesting one too, isn't it, because it
doesn't really understand what people potential tax bill is on
all these things as well, because you're paying a higher
rate of tax. If you're on a hundred thousand, you're
paying a lot less tax than someone on five hundred thousand,
aren't you.
Speaker 4 (10:12):
Yeah, well that's where then the test rate comes in.
Speaker 2 (10:14):
Yeah.
Speaker 4 (10:14):
Right, so they've got those two measures.
Speaker 2 (10:16):
Okay, right, we want to hear from you though when
it comes as well to join the conversation. When it
comes to borrowing, do you trust the bank in terms
of what it's willing to give you or as you know,
the question of it's luxury to think that I'm going
to be able to say no to part of what
the bank will give me, because I'll just be able
to you know, if you're a first time buyer, you
(10:36):
want to borrow probably as much as they will give you.
We want to hear from you on eight hundred eighty
ten and eighty text nine to nine two and tell
you what. Will start off with a call right now,
shall we caram? Hello? Hi?
Speaker 3 (10:52):
Yes, hi here. I believe in borrowing whatever the bank
because you know, like I just applied to the mortgages
and yeah, I mean as an invisto, especially because you
know we're on interest only mortgages.
Speaker 2 (11:09):
Yeah, so what you'll bury borrow as much as you can.
Speaker 3 (11:14):
Well, every time I apply on, the bank says okay,
well we'll end you, you know, according to the equity
and the servicing and basing it on interest only. I
just borrow, you know, we just borrow it as long
as the rent covers the mortgage and all the expenses. Yeah,
you know, it doesn't really matter. You know, you just
(11:37):
keep borrowing as long as all the numbers work and
it's up to the bank or the mortgage focus to
work it out.
Speaker 2 (11:45):
So well, you do have a qualify there is that
so long, because you're not just saying I'll take whatever
the bank can give me. You're saying I'll take whatever
the bank can give me, so long as it all
adds up my end.
Speaker 3 (11:57):
Yes, and the bank, you know, figures it out. You know,
it's not really up to me to figure it out
whether I can afford it or not what the bank through.
Bank goes through all the expenses and sometimes they turn
around and say no. But then you know, your equality
goes up, or your income goes up, you know your
inks go up. You know, all those factors kind of
(12:19):
come into play, and your tea straits go down. Interest
rates are going down at the moment. So when you
reapproach them after six months or something, they turn around and.
Speaker 2 (12:27):
Say, oh yeah, hold on, hold on, hold on, hold on,
hold on. I just got to jump in there. Did
you say interest rates going down at the moment, Well, I.
Speaker 3 (12:35):
Mean they have gone down in.
Speaker 2 (12:38):
Okay? Cool? Yes.
Speaker 4 (12:39):
As as as an investor, you know, you want to
be looking at your own numbers. And if you're an
investor who's looking at those cashlow properties where you're potentially
looking at a property that can cover its own costs,
then yeah, you're going to mitigate that risk of borrowing more.
But the bank's still going to assess things to make
sure that you can afford that. So you're going to
you're unlikely to find an investor that won't take the
(13:00):
money that the bank will give them.
Speaker 2 (13:02):
Yeah, So do you just trust the bank totally on this?
Because I remember we spoke last week and you you
u us when you're an investor who's got a bunch
of properties, but you you know, you're looking for a
particular type of property with a particular type of income
that you that can cover most of, not all, the costs,
(13:22):
and so apart from that, you just say, okay, bank,
how much will you give me?
Speaker 4 (13:27):
Yes?
Speaker 3 (13:27):
That's right? Yes, So, I mean I think because you're
I've been borrowing since twenty eleven. I know, I heard
you guys talking about it twenty eleven. It was about
three point ninety nine, and you know my memory that
like that was that was one of the lowest as
well back then. So I mean, yeah, I just I
totally believe in just borrowing whatever the bank gives and
I trust them.
Speaker 2 (13:46):
And you know, you're a great customer for your bank mate,
they must just love you, and vice versa.
Speaker 3 (13:54):
Yes, yes, I mean I'm not one of those you
know who I know, majority of the people you know
don't like the banks, and you know they're going about
all of that. I mean, you just got to work
with them. They're a business. I'm running a business. We're
all running a business. At the end of the day,
everyone's got to make money, you know. And and with
investment properties, you know, as long as the you know,
all the pipe goings are covered, that's all that matters,
(14:17):
you know, because I'm not really too worried about cattle games.
All the bills are covered, you know. And then obviously
down the track as the values go up, you know,
we might sell one property out of five and then
repay it, but we are in control of when we
want to repay it, maybe after five or ten years.
(14:38):
I have repaid some of them by selling some of them.
But I'm not sitting there worrying every month about repaying
the mortgage.
Speaker 2 (14:46):
You know. The good on you mate, Actually, I mean
that that's also the voice of an experienced investor. Sounds
like everything's water for them, tuxpact. And there must be
other people who going, God, I wish I could be
that relaxed. I mean because mortgages just to mention a
mortgages stresses people out do, isn't it.
Speaker 4 (15:01):
Yeah, it does. I mean it is in a different, different,
different p right in terms of growth, investment type, investment properties,
and quite an aggressive growth strategy by the sounds of it.
So when you're in that space, if the bank's giving
you money, you're probably going to take it. You're gonna
find something to do with it.
Speaker 2 (15:15):
Yeah, And I think also worked he's in the space
of he's looking for a particular type of property where
I mean, I'm not sure when he described them to me.
They're just simply income giving units. He's not worried about
suddenly this is going to be the property in ten
years time, which is going to go through the roof
and value.
Speaker 4 (15:34):
Well, it's interesting, he said, not worried about capital growth
and everything's on interest only, so they must be cashler
positive because otherwise what's the point.
Speaker 2 (15:41):
Yeah, So yeah, maybe we should get him on the
show anyway. Hey, so recently are you saying that you're
quite confident these days with the current responsible lending code
or rules that really we aren't seeing the case of
people being frightened by them out they can borrow so
much unless they're high income individuals.
Speaker 4 (16:03):
I guess, yeah, No, we definitely see clients who can
borrow more than they want to. Yeah, And that's where
you've got to have a discussion around, you know, just
because the bank says you can borrow two million dollars, yeah,
is that actually where you want to where you want
to be? Right? And so there's there's what the banks
is you can borrow, there's what you feel like you
can borrow. And as long as what the banks is
you can borrow is higher because you feel like you
(16:23):
can borrow more, it doesn't matter.
Speaker 2 (16:24):
It's funny how that, as we mentioned. I mentioned before
just about the stress of mortgages, because I'm going through
this at the moment that We've got a few more
things we need to do to the house. And on
one side, so we have managed to pay down quite
a bit of the mortgage and I can see the
end insight, you know, in sight. I don't mean you know, next,
next year or anything, but I just hate we will
(16:45):
have to borrow more to do the renovations. But there's
a part of me that just hates doing that because
I can I just feel all of a sudden it's
going backwards again. So my stress levels go through the roof.
And we're not talking about a lot of money, but
it's just the idea of going backwards at all.
Speaker 4 (17:00):
Yeah. Absolutely. And I've got a sister who's currently looking
to buy a first property and she's going through that
that stress of taking on a mortgage and not wanting
to stretch too far. And then we've got clients who
are much like Kram, who are willing to take whatever
the bank says. It's a real mixture.
Speaker 2 (17:16):
It's a bit different though. He's talking about how different
an attitude do investors have two people who are buying
their home because the investors there's something about it. I'm
not living in it. I'm going to tenant it. I'm
going to have money coming in, money's going to go out,
and hopefully it all makes sense. I mean, I must
say that what he describes seems to me to be
quite an elusive sort of equation.
Speaker 4 (17:37):
Yeah, like a good investor is not worried not bringing
emotion into it, right.
Speaker 2 (17:40):
Yeah. Whereas you know, with the home, there's all we
could have an extra bedroom for how much? Oh my goodness,
what are we going to have a children? How many,
how large is our family are going to be? Oh?
What about this neighborhood? What about the schools here? And
all of a sudden the mortgage is available and your
ambitions creep up, terrifies the hell out of me. Anyway, Hey, look,
we'd love your calls. I one hundred and eighty, ten
and eighty. How did you go when it came to
(18:01):
making the decision on him? How much you would borrow
versus how much the bank says you can borrow? And
as I throw that question out, I know for a
lot of home at first time buyers, you just need
as much money as you can get your hands on
because the rules are you know, they're already a handbrake
and what you can borrow. So we want to have
your call. Oh, eight hundred and eighty ten eighty. My
guest is Peter Nourisse's managing director of Op's mortgages. So
(18:22):
if you've got any questions about your mortgage or I
think I'm sure Peter would love to give his no
specific financial advice assistance to you. We'll be back in
just to take twenty five past news talk se' b.
This is the one with radio show talking about mortgages
and how much you could or should borrow. My guess
is Peter Nourisse's managing director of Opas mortgages. Part of it,
I guess the other thing is considering.
Speaker 4 (18:45):
What should we What do you think is.
Speaker 2 (18:48):
Going to happen with your interest rates? Because I can't
see ever getting any cheaper, and so in a way, Peter,
I sort of sort of think, if you can buy
right now, nothing should be holding you back. But what's
actually happening with borrowing and lending and what people are doing.
Speaker 4 (19:03):
Oh, I think it's a big call to say you
can't it ever getting any cheaper. I think, you know,
the strange of things have happened. We saw a few
years ago they were pretty cheap. But look at the
moment we've got interest rates going up. The banks are
pushing test rates up, and when test rates go up,
borron capacity goes down. So if you've got interest rates
at and affordable ever or as low as as long
as they're potentially going to be for some time, and
(19:25):
you've got boring capacity as high as it's going to
be for some time, then potentially could be a good opportunity.
Speaker 2 (19:30):
I mean, what are you what's your take on what
interest rates going to do, because they're certainly not going
to go down anytime soon, are they. Although I don't
know what happens with the straits of Hormos and the
talk of them being open again and all the strength
that's on the economy. How much actually how much is
the current situation for the last month or two with Iran?
How much has that affected just things in your end.
Speaker 4 (19:48):
Of them, I'd say it comes into every conversation we
have with a client, just in the in the case
of clients want to know what we think. We rely
on experts pay far more than we from us to
tell us what's going to happen with with all of this,
and I don't think that any of them are going
to get it either. So you've got economists from different
banks seeing different things, get the reserve banks every one thing,
(20:10):
and then you've got global political leaders doing other things.
Speaker 2 (20:13):
God, what's your what is your take on what the
likelihood of interest rates is you know, over the next
sort of six months or a year. I know this
is guesswork as well, so I know it's a bit
of an unfair question. I Mean, my guess would be
at some stage that they're going to pop up by
zero point two five half a percent or whatever. But
I don't know if there's going to be That's all
the question around inflation and whether the Reserve Bank thinks that,
(20:36):
you know, that's what they're going to need to do
to keep a lid on it.
Speaker 4 (20:39):
Yeah, Well, they're in a tough position to be able
to do their lift interest rates because inflation's rising, or
do they need to pull them down because the economy
is weak. It's a tough position to be in in
terms of interest rates. It looks for all money that
they will increase in the short term. Ains. It came
out last week and said that they're expecting the OCA
to increase three times this year starting in July.
Speaker 2 (20:59):
Where who said that?
Speaker 4 (21:02):
Whereas previously they were predicting it to start increasing from December.
So we are you know, they've brought that forecast of
increasing OCR forward to the first one in July.
Speaker 2 (21:13):
Okay. On the interest rates, there's obviously you know, it
does make a difference how much you're paying for interest rates,
But when you consider what a point five percent raise,
I don't want to be I don't want to trivialize
this when people are maxed out. But do we get
I'll just say it, do we get too obsessed with
these small shifts? Either way? When you know a point
(21:37):
two five percent change in the interest rates, what's that
over one hundred thousand dollars, it's it's two hundred and
fifty bucks, so five dollars a week. Okay, if you've
got one hundred thousand dollars then mortgage, than lucky you.
But do you think we get a bit too caught
up with it? Does the average punter really get stressed
out about interest rates adjusting by point five percent or
(21:59):
point twenty five or is it just a case of look,
you can borrow the money. You know, this is the
equation with your in come. Just get in. Whether you're
paying a few hundred dollars extra you or not, don't
worry about it. I don't know. I don't want to
be I don't want to be fickle.
Speaker 4 (22:11):
No, and A. It's a balancing act there. But if
you take half a million dollar mortgage on in a
half percent shift in interest rates, then you're at two
and a half grand a year, so fifty bucks a week.
Most people who have a half a million dollar mortgage
can find a way to adjust their spending habits to
find fifty dollars. Bear in mind again, the bank has
tested you at two percent above what the what the
(22:33):
rate is? Its a rate shift by half a percent,
you should be able to afford that lending.
Speaker 2 (22:37):
So what's the test rate at the moment for that?
A bank puts you.
Speaker 4 (22:40):
Through somewhere between six and a half and seven percent.
Speaker 2 (22:42):
Actually, that's moved around a bit lately, hasn't it.
Speaker 4 (22:44):
Yeah, it's jumped up. A couple of the banks pushed there,
pushed them up over the last couple of weeks, off
off the back of interest rates increasing, which is actually
not off the back of the ocr increasing because that
hasn't moved, but interest rates have What.
Speaker 2 (22:57):
Do you have a rule of thumb for yourself about
the test interest rate as to you know, what you
would be what you could absorb? The rule of thumb
that was given to me by a friend of mine
who's an accountant, probably about thirty years ago, and I've
never forgotten it. He said, oh, you should always just
be comfortable at eight percent should be your test rate.
(23:18):
And it seems that that wasn't a bad you know.
Speaker 4 (23:20):
Yeah, Well, we talked to all our clients about what
happens if they get to nine? So really, so there
are thereabouts. I mean it was only a couple of
years ago when interest rates were seven percent, the test
rates were nine.
Speaker 2 (23:32):
Okay, so I mean how much of an So currently
where what are the interest rates right now for mortgages?
Speaker 4 (23:38):
Somewhere between four and a half and five and a half,
depending if you're going one year.
Speaker 2 (23:41):
Or five years. So realistically people should be should plan
to be comfortable at around seven or six and a half.
Speaker 4 (23:47):
Yeah. Well, as I said, the banks are testing right now.
Speaker 2 (23:49):
At seven okay, so that's their test so just yeah, okay.
I would love to have your cause on this as well.
I eight hundred and eighty ten eighty. Let's have a
look at a few of the texts because we've got
a bunch of corresponds coming in. But if you want
to jump the queue, like Kiam, then get on the blow.
I eight hundred eighty ten eight. This one here is
from Shane. It says I bought my house in two
thousand and eight and the interest rates were nearly ten percent.
(24:13):
Then about six months later they started to come down.
I hope that answers your question. I don't know what
question that was?
Speaker 4 (24:19):
I wonder what you're doing two eleven? But as well,
Oh yes, and that was GFC there.
Speaker 2 (24:24):
Oh yeah, okay, yeah that was expensive, wasn't it? Okay,
what else we got here? It's the bank's job to
always offer. No, this is someone just teaching us the
obvious and reminding us what the obvious of the banks is.
It's the bank's job to always offer money to lend,
just like a human needs oxygen to survive, says John.
And I guess that's just reminding us what their gig is.
(24:48):
M Okay, here we go. Is it possible? Oh god,
I can't quite that one. I can't make sense. I'll
tell you what. We might take a quick break. We'll
come back and just to take eight hundred eighty ten eight.
I'll go and try and decide for the grammar of
this text that I started to try and read there
for a second. My guest is Pete. My guest is
(25:09):
Peter Norrisse's managing director of OPS Mortgages. How did you
decide what you needed to borrow when it came to
buying your house and how much of that was related
to what the banks would give you eight hundred and
eighty ten eighty. It is twenty five minutes to five.
News Talk said b Yes, News Talk said, be welcome
back to the show. My guest is Peter Norrisse's managing
(25:30):
director of Opeas Mortgages, and we're talking about how much
you should borrow versus how much your bank's willing to
lend to you. Part of the question has sort of
been rented redundant by Peter when he tells us that
the banks are reasonably conservative, conservative about how much they'll
lend you, and so as opposed to when I borrowed
(25:50):
fifteen years ago, I was frightened about how much money
I could borrow. And you're saying that's not so really
so much you need to be need to be boried
worried about?
Speaker 4 (25:58):
Yes, sorry, I mean to derail it. I mean there
are there are home now now, look, there are there
are plenty of cases where people can borrow. Oh, people
push their limits limits pretty hard and they will you know,
crames Come suggested the same thing, right like, he'll borrow
exactly what the bank tells them, right up to the
absolute limit. And investors can borrow more because they are
(26:19):
at seven times set to income where hiss owner occupied
are at six, so they are pushing it as hard
as they can.
Speaker 2 (26:25):
Yeah, it's funny. Actually we were actually we were interesting
only for a while when we first just to get
on top of things and some other expenses and all
that sort of stuff. In fact, I mean that does
make a difference to how long her mortgage is. But
then all of a sudden, you know, we managed to
pay a chunk of it off and catch up. But
it's a funny one, isn't it just working out how
quickly you should pay it off versus living your life
as well.
Speaker 4 (26:46):
Yeah, well that is an interesting point because we get
you know, you take your mortgage out over thirty years.
Most people will take that mortgage out and they'll they'll
probably take thirty years. The vast majority of people. There
are plenty of clients who will aimed to pay it
off faster, but the vast majority will stick to the
minimum payments and pay it off over a few years
or probably even longer, because they'll top up, they'll upgrade
(27:09):
their home, they'll sell and move all sorts of different things,
and restretch those terms back out to thirty years as
often as they can.
Speaker 2 (27:16):
That's interesting. I wonder how many, how many? How often
do people actually because maybe it's just because I don't
have grand ambitions. I was thinking, even if I won
the lotto, whether we'd moved from where we are because
I love our little house. You know, I probably would
actually be honest, let's not get ridict, but you know,
I don't particularly if I suddenly ended up getting paid
a lot more money or whatever, I'm not sure i'd
(27:38):
necessarily want to translate that into a bigger house. But
of course, a lot of people, you know, their first
time is literally just their first of many.
Speaker 4 (27:47):
Yeah, or yeah, exactly, the first of many, or their
sort of stepping stone too, eventually getting the house they
really want, which comes with as their income grows, as
maybe interest rates drop, and then suddenly they can borrow more.
They so do that to people?
Speaker 2 (28:01):
Is that your experiences? Most people will generally if they
can get lent more money, they will use it to
just do other things, travel up because I'm always or
or just buy an nicer house and keep buying a
nicer house.
Speaker 4 (28:14):
Yeah, well definitely. The other interesting one is, you know
the banks have got all these green loans that they're
giving out. It's say one percent for three years. It's
still a thirty year term. It's just one percent for
the first three years. So there'll be bulger clients that
will pay it off in that period of time. There'll
be vulgar clients or borrowers who will take thirty years
to pay that green loan off. That for the ev
car that won't be around us.
Speaker 2 (28:35):
Oh, that's actually one of one of the other things
I meant to raise with you because we've had There
are a couple of things that they my bank is offered.
I think there's one is a renovation loan where you
can borrow up to fifty thousand bucks for one percent.
I haven't dug into how that works. I should probably
talk to them about it, to be honest, but I'm
also sort of there's part of me that they say,
you have to take it all out at once. That's
(28:56):
the one. So you know, yeah, I want to borrow
ten now, then another fifteen, then another They say, look,
take it all out now, but you can have it
one percent for three years or something.
Speaker 4 (29:08):
Yeah, if it's a renovation one, it might be that
two point five percent.
Speaker 2 (29:11):
That one, that's the one.
Speaker 4 (29:12):
If it's specific to green solar EVS, those sorts of things,
then it could be one percent, could potentially be zero percent.
Speaker 2 (29:18):
What's your take on those those green loans, because ultimately
they're a way of the bank's bank. The bank is
banking on you not paying it off, not paying it off.
So so if you suddenly pay that off, then they'll
be like, oh, we won't anticipating that, but that's the
game we're in. But their banking that you're going to
spend another ten or fifteen years as that being part
of your mortgage.
Speaker 4 (29:39):
Yeah, it's the same as a zero percent Harvey Norman
high purchase for Yeah, for five years, they're banking on
you're not paying it off.
Speaker 2 (29:46):
How would you do the numbers? How do you do
the numbers on that sort of stuff too? You know,
most people see, okay, I can get cheap money for
either a renovation or for you know, putting solar panels
on the roof, great, fantastic, But how what's the best
way to do the calculations on that so they can
get it in their own head as to this looks
cool for the time being, but where you're at in
five or seven years time.
Speaker 4 (30:07):
Yeah, I have different takes on that versus for the
renovation loan versus the okay, the green loan, because if
you're buying a if you're borrowing fifty to buy a Tesla,
then what's the long what's the lifespan of that car?
Do you want to borrow that over thirty years or
do you want to try and pay that loan off
in the term that you're going to have that car.
(30:28):
Whereas a renovation you might be adding value to a
home that you're going to stay in for twenty years,
in which case that makes sense.
Speaker 2 (30:33):
So you can buy it, you can borrow that. You
use that one percent green loan for a.
Speaker 4 (30:36):
Car, yeah, for an evy Yeah, Okay, I'll.
Speaker 2 (30:40):
Just think about that, so I'll talk about this. Mind.
The straits of all moves are open. Sorry, Okay, here's
a couple of text here to get into m pay
it if possible. My daughter is fifteen, she'll be in
university soon. Interest may be up. But I'm a widow
and I've seen a house. Please ask Pete at what
(31:00):
age would he no longer recommend getting a mortgage at all?
At seventy plus, I'll need something smaller, so I'll only
need a small mortgage. Do banks refuse loans to seventy
to eighty plus year olds.
Speaker 4 (31:14):
That's a great question. So the banks apply what's called
an age in stage rule. So if you're over a
if you're getting closer to retirement age or over, what
the bank's are wanting to make sure is that they're
not going to have to sell that house from under you. Yeah,
all right, So they don't want to get into the
position where you can't afford your mortgage and they're needing
to sell your home. So, especially if it's over seventy,
(31:38):
it's going to be very, very difficult to get money
and you're going to need to demonstrate to the bank
how are you going to pay that off?
Speaker 2 (31:46):
So she, I mean, this person who's texting would have
to have income for a start, because you know, unless
I'm not sure how she's talking about paying that off.
What questions would get asked of there?
Speaker 4 (32:00):
Yeah, well income is going to be a big one.
You can't borrow money without income unless you're unless you
dealing with lenders you don't want to deal with.
Speaker 2 (32:06):
Yeah, okay, that is a difficult one. I wonder how
many people do actually get mortgages once they're sort of
beyond retirement age.
Speaker 4 (32:12):
The big one at that point is probably the reverse
mortgage is where you've got a lot of equity and
you borrow against the equity, something I'm a fan of,
not a big fan of.
Speaker 2 (32:21):
No, I'm not a fan of that either. Okay, here's
another one. Forty years ago, I married bought a house
with a thirty year mortgage. Apparently having a mortgage is
not a marriage, is not a marriage. Vow quickly. I'm
now sixty and I have five years left on the mortgage.
Dad said, oh god, I don't know why I'm reading
these texts out the punchline. No cancel that, cancel that text.
(32:44):
So in the short term for people to think about
their mortgage rates, what do you think the short term
prognosis is for the next sort of three to six months,
because it does tend to if you think interest rates
are something going to change big time. And I'm looking
with that cheap money we got that people ended up
spending a fortune on properties that now you know, But
how long do you think the window is for people
(33:04):
to sort of make decision on borrowing and locking in
a cheaper interest rate?
Speaker 4 (33:08):
What do you reckon If you look back historically, there's
lots of research around the fact that actually trying to
predict interest rates, it almost never goes the way where
you want it to go, where you're likely to have
more more success in. Again, this is not advice, but
there's lots of research to suggest just taking one years,
going one year, one year, one year consistently tends to
(33:30):
have you be able to ride out those waves and
come head on the better side as opposed to as
opposed to trying to predict what rates are going to
do in the short term, it looks like rates are
going into increase. Yeah, you've got to weigh that up
against your own plans.
Speaker 2 (33:44):
Okay, somebody, there's a question on green loans here. I
could almost answer this with a guess, but I won't.
Are there any banks that'll give you a green loan
if you don't bank with them and don't have a mortgage.
Speaker 4 (33:55):
My guess is no, no, because it's secured by property.
Speaker 2 (33:58):
Okay, so there you go. That's a really easy answer
on that one. Peter, interested in your thoughts on our
situation where a young family and Auckland who own a
townhouse in Mount Roskill, which is full of townhouses. We
have tenants and they're renting ourselves in a different suburb.
Is now the time to get rid of the townhouse?
Speaker 4 (34:14):
Oh?
Speaker 2 (34:14):
What do you think townhouse supply will go down in
Auckland with the looming construction crisis for best to hold on? Oh,
townhouses are a tricky one, aren't they. Yeah?
Speaker 4 (34:24):
Look, I mean I'm not a property advisor, and but
right now, if you look at the numbers, Auckland looks
like it's at the bottom of the cycle. Probably not
a great time to be flicking it.
Speaker 2 (34:35):
No. So, in other words, because it is the time
it takes to sell a townhouse is it's It's quite
tough work at the moment, isn't it.
Speaker 4 (34:42):
Yeah? I think I think the time it takes to
sell a lot of property at the moment is tough. So,
but would you want to sell a property when you're
at the bottom of the market. Probably not. When you're selling,
you want to be near the top. Right when you're buying,
you want to be at the bottom.
Speaker 2 (34:55):
It looks like, well, that's the ultimate quest for everyone
in a property market, doesn't it. I want to sell
at the top and bar and the bottom. It's like, wow,
not many people actually manage to do that.
Speaker 4 (35:03):
Ex you don't know where you are till we look back.
Speaker 2 (35:06):
And the only people who've brag about that are the
ones who've succeeded. The other ones who haven't, you never
hear them bragging about Hey, guess what, I'm really messed
up my time on that one. Hey, look, we'ving back
in with The one roof Property of the Week is next.
It's twelve minutes to five news Talk z.
Speaker 1 (35:19):
B the one roof Property of the Week on the
Weekend Collective.
Speaker 2 (35:24):
Yes, the one roof Property the Week is in Totonger,
and I've got to say it is absolutely gorgeous property.
It actually reminds me of something that's fairly near where
I live. But as I was looking at it, as
in fact I play guess where the property is, it's
pretty difficult to work it out. But it's got gorgeous
sea views. But it is one of the area's originals
(35:46):
and automoti and at one time it was the residence
of an orchard. And the property actually has a name.
It's elmdene e l m DN and locopies over a
quarter acre of prime flat land and automotive is ever
desirable henewa road. It's got a northerly aspect. I love
this expression peeps of the harbor. My house has peeps
(36:08):
of the harbor, but I trust me, not the sort
of PEPs of the harbor that make you think it's
going to add to its value, but a pep of
the harbor. Nevertheless, it's I don't know how to describe
the the vibe of it, but it's in fact. I
might bring you in on this, Peter. If you've seen
the property of the weekendn't you, what's your description of it?
Speaker 4 (36:28):
Yeah, it's got a lot of character. I think that
people of the harbor that they mentioned the photos, I
think it's got a little bit more than a peep too.
I'm just some things.
Speaker 2 (36:37):
They've been quite modest about that, haven't they. I'm trying
to for some reason, to me, it sort of conjures
up that sort of and this might be overplaying it,
but there's sort of the Rhode Island in the USA.
There's a certain sort of American influence to the house.
I don't know why I'm saying that, but do you
know what I mean? For some reason, I'm thinking of
(37:03):
Barbara Streisand's house, which is the subject of the Strides
and effect that that's a completely I was.
Speaker 4 (37:08):
Going to say, they're putting the house that we're talking
about in your suburb significantly different price.
Speaker 2 (37:14):
I mean, if it was in Sinhalia's properly like that.
In fact, I originally thought when I saw it, but
then I saw the price and I thought, God, In fact,
I would have thought even for Toranger. So the asking prices,
they've got an asking price on this two point four
nine to five million, two and a half mil. The
RV is to point two two, but I don't know
what that means when we sometimes write them off and
(37:36):
the estimate for the one roof a site is around
two point three. I would have thought, actually that even
while it's not in an Auckland, Taro is a really
you know, an incredibly fast growing part of a part
of our country. I actually thought that that was I
don't want to say cheap, because nothing that's two and
a half million would ever be cheap. But what's your
(37:57):
take on the value of it.
Speaker 4 (37:58):
It's a lot of house for two and a half
mil compared to what you get around us, No, I think,
so that's a good price.
Speaker 2 (38:05):
Yeah, so go and check that out. It is sixteen
hen now I rode to Moti and Totranger. I'm not
sure if we've got any parting words of advice on
their whole mortgage? Should you borrow as much as the
bank can give you? Because your comments Peter ware that
basically the banks are a lot more responsible. So the
question I was thinking about Back when we could borrow,
(38:26):
we did have to really put our brain into gear
and go, well, hang on a minute, they'll lend us this,
But what really should we any thoughts in terms of
some of the things you should really consider when you're
looking at the amount you borrow.
Speaker 4 (38:36):
I think the big thoughts are if the amount of
banks is that you can afford is more than what
you want to borrow, then you're good. If it's the
other way around, then you can look at things like
spending habits. You can look at things like credit card
limits and those though after pays and all those things
that can hinder your borrowing capacity. There are things that
(38:57):
you can do to improve your borrowing ability. All I'm
saying is I think the bank's put a lot of
stress testing, and they governed by you know, a lot
of rules and regulation do make it harder for them
to lend people money than what historically it's been.
Speaker 2 (39:11):
Do you know many people who borrow to go on
holiday and things like.
Speaker 4 (39:13):
That every now and again, not very often, because.
Speaker 2 (39:16):
I must say I'm always amazed that people go on
I know, the interest rates gone down. I've gone on
board a new boat and buy it. I'm sort of like, God,
your game. But I guess you.
Speaker 4 (39:23):
Know, horses for courses, haven't.
Speaker 2 (39:26):
Hey great c Peter, thanks for coming in. If you
want to check out what's the website for you guys
at Opez Ops Mortgages dot C and Opeas Mortgages dot
co dot nz. And that wraps up the One Roof
Radio show. And if you want to go and check
out that property of the week, by the way it is,
I didn't think I gave the address today sixteen Henawa
Hi n e Waa, road, Otomoti and tong so go
(39:50):
and check that out and we'll be back. That was
the That was the One Ruth Radio Show. But we'll
be back with the Parents Squad, which is next. We've
got a new guest on the show. She is doctor
Miriam Mikaylab. She's Public Health Fellow at the University of
Canterbury and look broadly speaking, do we worry to too
much about ruining our kids? Are we too worried about
being perfect parents? From just chill out and just go
with the fly. We just dig into that. Plus also
(40:13):
the shure fire ways, perhaps that you can mess your
kids up. We'll be taking your calls on eight hundred
eighty ten eighty. It is now four minutes to five.
News Talks B.
Speaker 5 (40:23):
God, it takes Chrisis, the far See a cowboy eyes
fas Joy Leave drinking Jack by myself. He's choosing Texas
ikon te drinking Jacob by myself. He's choosing Texas talking to.
Speaker 2 (40:48):
Come on, baby.
Speaker 5 (40:54):
Oh, just let up the God in.
Speaker 3 (41:00):
The fire.
Speaker 1 (41:03):
Ship. For more from the Weekend Collective, listen live to
News Talk ZEDB weekends from three pm, or follow the
podcast on iHeartRadio
You're listening to the Weekend Collective podcast from News Talk
sed B.
Speaker 2 (00:31):
Yes, and welcome back to the week in Collective. This
is the one Roof radio show. And oh, actually that
song was chosen by our guest's daughter. Actually because I
was thinking, this is a youthful sounding song for us,
and I said to Tyroo's that and she pointed to
the to her to her right where the daughter of
my next guest is hanging out. Anyway, this is one
Ruth radio show where we want your calls on eight
(00:53):
hundred and eighty ten eighty text two. And what we're
going to talk about is money, money, money borrowing. So
you want to loan, I mean most people should be
interesting to know the number of people who don't need
to loan to buy a property outside of lotto winners.
But anyway, you want to loan to buy a property.
So the bank goes you know, we've all if you
(01:14):
bought a house. The bank goes through through the details.
They look at your invoices or you pay receipts or
self employed accounts or whatever. They look at what's gone
in and out of your accounts, going back for a while,
they give you a number that they're willing to lend you,
and you go, what how much? Because you know it
seems so grueling. You're thinking that they're going to be
a bit tight about it. But all of a sudden
(01:35):
the number comes in and I remember with us I
couldn't tell you what the number was, but I remember thinking,
oh my god, there's no way I would ever borrow
that amount of money, and wouldn't have considered I could
have met the repayments. But anyway, look, you might have
plans to just renovate or at another bedroom. You could
be planning to fund your kids through university. But anyway,
this is all effects what your monthly mortgage bill is
(01:56):
going to be. How did you figure out what you
would borrow. Was it simply tied to, well, we need
to get as much money as we possibly can just
to get into the market. Or if you had a
bit of flexibility, did you think, wow, we could actually
spend a lot more on a property, but it would
take us X number of months or years to perf
the mortgage. Did how much difference was there between the
(02:20):
amount that your banks said they would lend you, what
you thought you could borrow, and what you wanted to borrow.
We want to hear from you on eight hundred and
eighty ten to eighty and to discuss that and other
things along the way. He is managing director at Opea's
Mortgages and his name is Peter Morris. Norris should I
say Norris? And he's with me? Now get it, Peter?
Speaker 3 (02:39):
How are you going?
Speaker 4 (02:39):
Yeah? Good things?
Speaker 2 (02:41):
There usually is quite a is there often a surprise
for people in terms of how much they can borrow?
Or was I lucky that I didn't need to borrow
the max?
Speaker 4 (02:49):
Yeah? I think. I think is a real mixed there's
a youthful sort of owner occupies. Maybe first time buyers,
I think often want to push as high, high, as
high as they can, and we'll take what the bank
will give them. Yeah, And then those that have been
around for a while probably will be surprised much the
bank will give them.
Speaker 2 (03:05):
It's a bit of a nice It's an interesting one because, look,
all these things are subjective. You'd think that the one
thing there's this objective is the bank's take on it,
because they're the ones who they don't want it. I mean,
it's not in the bank's interest to lend you too
much and find that you can't meet the payments. But
then again, it's not in the bank's interests to lend
you something that you're going to pay off in ten
years either, So I mean they've got that responsibility to
(03:29):
themselves and not to have properties falling out because people
can't make the payments. But then again, I'm never sure
how to trust the relationship with the bank because they
make money from me paying interest for as long as
as humanly possible. But I must say my bank have
been quite nice to me about suggestions about paying off
the mortgage early. So I mean that's leading to the
(03:54):
question is can we trust the banks with what they
say about how much they lend to us? Is it
in our best interest? What's your take on it?
Speaker 4 (04:02):
Yeah, Look, I mean there's this little thing called the
rest Responsible Lending Code, which basically governs what the bank
some facts tells you in the name that they have
to lend you a responsible amount, and that basically means
that they have to assess things pretty strictly, and they
do that in various different ways. You've got what the
banks call their test rates, which is they apply sort
(04:26):
of two to two and a half percent above whatever
the going rate is. At the time, and they stress
test you at that to make sure that you can
afford your lending. If interest rates went that high. Right
at the moment they're about seven percent, whereas rates are
about four and a half to five and a half.
Speaker 2 (04:39):
How much did they go into. Look, it's a while
ago since we bought our house. In fact, I can
tell how long ago it goes. It's because my daughter
had just been born such fifteen years ago. So that's
funny enough. It doesn't feel that long. Makes me suddenly
realize I'm a bit of a grown up. But oh god,
it is fifteen years How much should have paid it off?
Never mind? He So I can't remember how much detail
(05:03):
they went into. And to be honest, I think we
were lucky that we got the property for quite a
good price. We had a reasonable deposit, and I was
self employed, which would have put us through the wringer,
but we did it on my wife's teacher's salary.
Speaker 4 (05:17):
And yeah, well fifteen years ago was twenty eleven. So
after the GFC you were and interest rates were.
Speaker 2 (05:28):
I can't tell you what they were. I don't know
what they.
Speaker 4 (05:30):
Were trending down, I believe I can't mean what we paid.
I was trying to think back to twenty eleven. I was.
I was working at the bank lending money at that point.
Speaker 2 (05:40):
So here's okay, I don't know where that where that
story was going.
Speaker 4 (05:45):
Well, I can tell you at that point, the responsible
lending code didn't exist. Okay, responsible linding codes come in
and things have tightened up a little bit.
Speaker 2 (05:53):
Well, I don't remember them looking at I mean, they
can see from our bank accounts, what I guess, they
can just see what their spending is, and that would
be it, wouldn't it. They would wouldn't have needed to
quiz us because they go, this is what you're lending. Sorry,
this is what you're borrowing. Here's your wife's income. We're
happy with that. But I do remember thinking that if
(06:14):
we'd taken out what we could have borrowed, we would
have had very little room for what I would call
to be described as discretionary spending.
Speaker 4 (06:27):
Yeah, I would say that, As I said, the responsibleition
code wasn't around then. I do think, and I think
back to my days of being a lender, and at
those times, and you call them the good old days,
you could almost get away with anything. We were lucky
years ago things have definitely changed a lot. We're moving
into a world now of open banking, where banks can
see everything that you do and very.
Speaker 2 (06:46):
Easily everything like what.
Speaker 4 (06:49):
Well all of you spending all of your account they.
Speaker 2 (06:50):
Are from other banks as well. Yeah, my Westpac credit card,
the A and Z could see what I'm what really.
Speaker 4 (06:56):
Yeah, whether you're transferring money off to accounts that they
can't actually see, they can see some spending habits. So
they're analyzing a lot of different things that they certainly
weren't fifteen years ago.
Speaker 2 (07:04):
It's funny. I feel I should not like that, but
I don't really mind that because I'm not. I'm not
someone I feel I've has got anything to hide.
Speaker 4 (07:11):
Yeah, look, I mean it's not as though they can
do that at any time.
Speaker 2 (07:14):
Yeah, let's see what you've got into that restaurant that night. Okay,
I thought you. I thought you. They can just do it.
Speaker 4 (07:22):
No, No, you've got to give them permission. If you're
applying for lending, you going to need to give them permission.
Speaker 2 (07:27):
Do you remember how long have you had your house for?
Speaker 4 (07:29):
Well, this particular one only about two years.
Speaker 2 (07:32):
How long since you bought your first house?
Speaker 4 (07:35):
For fifteen years?
Speaker 5 (07:36):
Oh?
Speaker 2 (07:36):
Same as me. Okay, let's look at the last one.
Do you did you? I mean, you can spill as
much of your own information as you want. But could
you have borrowed a lot more? And did that create
a temptation for you to get a really flash house
or did you actually fall for that temptation and you've
got the biggest house in part.
Speaker 4 (07:54):
Now probably a mixture of both somewhere in the middle.
Speaker 2 (07:59):
How did you make that decision for you on what
the bank thought you could borrow versus what you thought
you needed to borrow, because you know, I look at
our property of the week. Here's an example. Okay, property
of the week's in Taro, and we'll talk about it later.
It's beautiful, okay. But if I was moving to Tarog
and I was getting what I think we'd get for hours,
I would have to borrow quite a whack more. But
if the bank would let me have it, there'd be
(08:19):
a part of me which would be then I could
buy this house. And so did you have that journey
yourself about what we should borrow versus the house I want?
Or did you are you lucky enough that you went
I've got the house I want?
Speaker 4 (08:33):
Worry No, not so much, not so much. We were
we were moving from from Koumu to central all so
it's quite a difference in price points. And no, we weren't.
We weren't needing to Oh well, we kind of needed
to take what the bank would give us.
Speaker 2 (08:48):
Okay, So it wasn't a case. Okay, So that is
a bit of a change. Yeah, because if you're moving
to one of the central sort of suburbs, then it's
a bit different. Did you have that did you want
to max out you're borrowing or what was your approach.
Speaker 4 (09:01):
To No, personally, not, because we've got other things we
want to do as well.
Speaker 2 (09:03):
Yeah, because if.
Speaker 4 (09:04):
You max it MAXI be borrowing out on one property,
then you remove your ability to do anymore.
Speaker 2 (09:10):
So you're the guy opus mortgages, right, So how do
you approach, you know, advising customers on this.
Speaker 4 (09:20):
Yeah. So I mean, like I said, the banks have
governed by their responsible in any code. I think, to be
perfectly honest, I think it's really difficult that these days
to borrow more than what you're actually able to.
Speaker 2 (09:32):
Yeah, uh is it? That's good to know because I
considered I would have been able to borrow way more
than I could have couldn't affwarded? Yeah, and is that
just because it was fifteen years ago?
Speaker 4 (09:42):
Things have changed a lot. We've got you've got the
test rates, we've got the Reserve Bank debt to income ratios,
which you know, based on those test rates, you could
actually borrow sort of seven to seven and a half
times your income. But if you're buying an under occupied
the Reserve Bank is going to limit to you to
six times.
Speaker 2 (09:57):
So six times your net income too is a gross income.
And that's an interesting one too, isn't it, because it
doesn't really understand what people potential tax bill is on
all these things as well, because you're paying a higher
rate of tax. If you're on a hundred thousand, you're
paying a lot less tax than someone on five hundred thousand,
aren't you.
Speaker 4 (10:12):
Yeah, well that's where then the test rate comes in.
Speaker 2 (10:14):
Yeah.
Speaker 4 (10:14):
Right, so they've got those two measures.
Speaker 2 (10:16):
Okay, right, we want to hear from you though when
it comes as well to join the conversation. When it
comes to borrowing, do you trust the bank in terms
of what it's willing to give you or as you know,
the question of it's luxury to think that I'm going
to be able to say no to part of what
the bank will give me, because I'll just be able
to you know, if you're a first time buyer, you
(10:36):
want to borrow probably as much as they will give you.
We want to hear from you on eight hundred eighty
ten and eighty text nine to nine two and tell
you what. Will start off with a call right now,
shall we caram? Hello? Hi?
Speaker 3 (10:52):
Yes, hi here. I believe in borrowing whatever the bank
because you know, like I just applied to the mortgages
and yeah, I mean as an invisto, especially because you
know we're on interest only mortgages.
Speaker 2 (11:09):
Yeah, so what you'll bury borrow as much as you can.
Speaker 3 (11:14):
Well, every time I apply on, the bank says okay,
well we'll end you, you know, according to the equity
and the servicing and basing it on interest only. I
just borrow, you know, we just borrow it as long
as the rent covers the mortgage and all the expenses. Yeah,
you know, it doesn't really matter. You know, you just
(11:37):
keep borrowing as long as all the numbers work and
it's up to the bank or the mortgage focus to
work it out.
Speaker 2 (11:45):
So well, you do have a qualify there is that
so long, because you're not just saying I'll take whatever
the bank can give me. You're saying I'll take whatever
the bank can give me, so long as it all
adds up my end.
Speaker 3 (11:57):
Yes, and the bank, you know, figures it out. You know,
it's not really up to me to figure it out
whether I can afford it or not what the bank through.
Bank goes through all the expenses and sometimes they turn
around and say no. But then you know, your equality
goes up, or your income goes up, you know your
inks go up. You know, all those factors kind of
(12:19):
come into play, and your tea straits go down. Interest
rates are going down at the moment. So when you
reapproach them after six months or something, they turn around and.
Speaker 2 (12:27):
Say, oh yeah, hold on, hold on, hold on, hold on,
hold on. I just got to jump in there. Did
you say interest rates going down at the moment, Well, I.
Speaker 3 (12:35):
Mean they have gone down in.
Speaker 2 (12:38):
Okay? Cool? Yes.
Speaker 4 (12:39):
As as as an investor, you know, you want to
be looking at your own numbers. And if you're an
investor who's looking at those cashlow properties where you're potentially
looking at a property that can cover its own costs,
then yeah, you're going to mitigate that risk of borrowing more.
But the bank's still going to assess things to make
sure that you can afford that. So you're going to
you're unlikely to find an investor that won't take the
(13:00):
money that the bank will give them.
Speaker 2 (13:02):
Yeah, So do you just trust the bank totally on this?
Because I remember we spoke last week and you you
u us when you're an investor who's got a bunch
of properties, but you you know, you're looking for a
particular type of property with a particular type of income
that you that can cover most of, not all, the costs,
(13:22):
and so apart from that, you just say, okay, bank,
how much will you give me?
Speaker 4 (13:27):
Yes?
Speaker 3 (13:27):
That's right? Yes, So, I mean I think because you're
I've been borrowing since twenty eleven. I know, I heard
you guys talking about it twenty eleven. It was about
three point ninety nine, and you know my memory that
like that was that was one of the lowest as
well back then. So I mean, yeah, I just I
totally believe in just borrowing whatever the bank gives and
I trust them.
Speaker 2 (13:46):
And you know, you're a great customer for your bank mate,
they must just love you, and vice versa.
Speaker 3 (13:54):
Yes, yes, I mean I'm not one of those you
know who I know, majority of the people you know
don't like the banks, and you know they're going about
all of that. I mean, you just got to work
with them. They're a business. I'm running a business. We're
all running a business. At the end of the day,
everyone's got to make money, you know. And and with
investment properties, you know, as long as the you know,
all the pipe goings are covered, that's all that matters,
(14:17):
you know, because I'm not really too worried about cattle games.
All the bills are covered, you know. And then obviously
down the track as the values go up, you know,
we might sell one property out of five and then
repay it, but we are in control of when we
want to repay it, maybe after five or ten years.
(14:38):
I have repaid some of them by selling some of them.
But I'm not sitting there worrying every month about repaying
the mortgage.
Speaker 2 (14:46):
You know. The good on you mate, Actually, I mean
that that's also the voice of an experienced investor. Sounds
like everything's water for them, tuxpact. And there must be
other people who going, God, I wish I could be
that relaxed. I mean because mortgages just to mention a
mortgages stresses people out do, isn't it.
Speaker 4 (15:01):
Yeah, it does. I mean it is in a different, different,
different p right in terms of growth, investment type, investment properties,
and quite an aggressive growth strategy by the sounds of it.
So when you're in that space, if the bank's giving
you money, you're probably going to take it. You're gonna
find something to do with it.
Speaker 2 (15:15):
Yeah, And I think also worked he's in the space
of he's looking for a particular type of property where
I mean, I'm not sure when he described them to me.
They're just simply income giving units. He's not worried about
suddenly this is going to be the property in ten
years time, which is going to go through the roof
and value.
Speaker 4 (15:34):
Well, it's interesting, he said, not worried about capital growth
and everything's on interest only, so they must be cashler
positive because otherwise what's the point.
Speaker 2 (15:41):
Yeah, So yeah, maybe we should get him on the
show anyway. Hey, so recently are you saying that you're
quite confident these days with the current responsible lending code
or rules that really we aren't seeing the case of
people being frightened by them out they can borrow so
much unless they're high income individuals.
Speaker 4 (16:03):
I guess, yeah, No, we definitely see clients who can
borrow more than they want to. Yeah, And that's where
you've got to have a discussion around, you know, just
because the bank says you can borrow two million dollars, yeah,
is that actually where you want to where you want
to be? Right? And so there's there's what the banks
is you can borrow, there's what you feel like you
can borrow. And as long as what the banks is
you can borrow is higher because you feel like you
(16:23):
can borrow more, it doesn't matter.
Speaker 2 (16:24):
It's funny how that, as we mentioned. I mentioned before
just about the stress of mortgages, because I'm going through
this at the moment that We've got a few more
things we need to do to the house. And on
one side, so we have managed to pay down quite
a bit of the mortgage and I can see the
end insight, you know, in sight. I don't mean you know, next,
next year or anything, but I just hate we will
(16:45):
have to borrow more to do the renovations. But there's
a part of me that just hates doing that because
I can I just feel all of a sudden it's
going backwards again. So my stress levels go through the roof.
And we're not talking about a lot of money, but
it's just the idea of going backwards at all.
Speaker 4 (17:00):
Yeah. Absolutely. And I've got a sister who's currently looking
to buy a first property and she's going through that
that stress of taking on a mortgage and not wanting
to stretch too far. And then we've got clients who
are much like Kram, who are willing to take whatever
the bank says. It's a real mixture.
Speaker 2 (17:16):
It's a bit different though. He's talking about how different
an attitude do investors have two people who are buying
their home because the investors there's something about it. I'm
not living in it. I'm going to tenant it. I'm
going to have money coming in, money's going to go out,
and hopefully it all makes sense. I mean, I must
say that what he describes seems to me to be
quite an elusive sort of equation.
Speaker 4 (17:37):
Yeah, like a good investor is not worried not bringing
emotion into it, right.
Speaker 2 (17:40):
Yeah. Whereas you know, with the home, there's all we
could have an extra bedroom for how much? Oh my goodness,
what are we going to have a children? How many,
how large is our family are going to be? Oh?
What about this neighborhood? What about the schools here? And
all of a sudden the mortgage is available and your
ambitions creep up, terrifies the hell out of me. Anyway, Hey, look,
we'd love your calls. I one hundred and eighty, ten
and eighty. How did you go when it came to
(18:01):
making the decision on him? How much you would borrow
versus how much the bank says you can borrow? And
as I throw that question out, I know for a
lot of home at first time buyers, you just need
as much money as you can get your hands on
because the rules are you know, they're already a handbrake
and what you can borrow. So we want to have
your call. Oh, eight hundred and eighty ten eighty. My
guest is Peter Nourisse's managing director of Op's mortgages. So
(18:22):
if you've got any questions about your mortgage or I
think I'm sure Peter would love to give his no
specific financial advice assistance to you. We'll be back in
just to take twenty five past news talk se' b.
This is the one with radio show talking about mortgages
and how much you could or should borrow. My guess
is Peter Nourisse's managing director of Opas mortgages. Part of it,
I guess the other thing is considering.
Speaker 4 (18:45):
What should we What do you think is.
Speaker 2 (18:48):
Going to happen with your interest rates? Because I can't
see ever getting any cheaper, and so in a way, Peter,
I sort of sort of think, if you can buy
right now, nothing should be holding you back. But what's
actually happening with borrowing and lending and what people are doing.
Speaker 4 (19:03):
Oh, I think it's a big call to say you
can't it ever getting any cheaper. I think, you know,
the strange of things have happened. We saw a few
years ago they were pretty cheap. But look at the
moment we've got interest rates going up. The banks are
pushing test rates up, and when test rates go up,
borron capacity goes down. So if you've got interest rates
at and affordable ever or as low as as long
as they're potentially going to be for some time, and
(19:25):
you've got boring capacity as high as it's going to
be for some time, then potentially could be a good opportunity.
Speaker 2 (19:30):
I mean, what are you what's your take on what
interest rates going to do, because they're certainly not going
to go down anytime soon, are they. Although I don't
know what happens with the straits of Hormos and the
talk of them being open again and all the strength
that's on the economy. How much actually how much is
the current situation for the last month or two with Iran?
How much has that affected just things in your end.
Speaker 4 (19:48):
Of them, I'd say it comes into every conversation we
have with a client, just in the in the case
of clients want to know what we think. We rely
on experts pay far more than we from us to
tell us what's going to happen with with all of this,
and I don't think that any of them are going
to get it either. So you've got economists from different
banks seeing different things, get the reserve banks every one thing,
(20:10):
and then you've got global political leaders doing other things.
Speaker 2 (20:13):
God, what's your what is your take on what the
likelihood of interest rates is you know, over the next
sort of six months or a year. I know this
is guesswork as well, so I know it's a bit
of an unfair question. I Mean, my guess would be
at some stage that they're going to pop up by
zero point two five half a percent or whatever. But
I don't know if there's going to be That's all
the question around inflation and whether the Reserve Bank thinks that,
(20:36):
you know, that's what they're going to need to do
to keep a lid on it.
Speaker 4 (20:39):
Yeah, Well, they're in a tough position to be able
to do their lift interest rates because inflation's rising, or
do they need to pull them down because the economy
is weak. It's a tough position to be in in
terms of interest rates. It looks for all money that
they will increase in the short term. Ains. It came
out last week and said that they're expecting the OCA
to increase three times this year starting in July.
Speaker 2 (20:59):
Where who said that?
Speaker 4 (21:02):
Whereas previously they were predicting it to start increasing from December.
So we are you know, they've brought that forecast of
increasing OCR forward to the first one in July.
Speaker 2 (21:13):
Okay. On the interest rates, there's obviously you know, it
does make a difference how much you're paying for interest rates,
But when you consider what a point five percent raise,
I don't want to be I don't want to trivialize
this when people are maxed out. But do we get
I'll just say it, do we get too obsessed with
these small shifts? Either way? When you know a point
(21:37):
two five percent change in the interest rates, what's that
over one hundred thousand dollars, it's it's two hundred and
fifty bucks, so five dollars a week. Okay, if you've
got one hundred thousand dollars then mortgage, than lucky you.
But do you think we get a bit too caught
up with it? Does the average punter really get stressed
out about interest rates adjusting by point five percent or
(21:59):
point twenty five or is it just a case of look,
you can borrow the money. You know, this is the
equation with your in come. Just get in. Whether you're
paying a few hundred dollars extra you or not, don't
worry about it. I don't know. I don't want to
be I don't want to be fickle.
Speaker 4 (22:11):
No, and A. It's a balancing act there. But if
you take half a million dollar mortgage on in a
half percent shift in interest rates, then you're at two
and a half grand a year, so fifty bucks a week.
Most people who have a half a million dollar mortgage
can find a way to adjust their spending habits to
find fifty dollars. Bear in mind again, the bank has
tested you at two percent above what the what the
(22:33):
rate is? Its a rate shift by half a percent,
you should be able to afford that lending.
Speaker 2 (22:37):
So what's the test rate at the moment for that?
A bank puts you.
Speaker 4 (22:40):
Through somewhere between six and a half and seven percent.
Speaker 2 (22:42):
Actually, that's moved around a bit lately, hasn't it.
Speaker 4 (22:44):
Yeah, it's jumped up. A couple of the banks pushed there,
pushed them up over the last couple of weeks, off
off the back of interest rates increasing, which is actually
not off the back of the ocr increasing because that
hasn't moved, but interest rates have What.
Speaker 2 (22:57):
Do you have a rule of thumb for yourself about
the test interest rate as to you know, what you
would be what you could absorb? The rule of thumb
that was given to me by a friend of mine
who's an accountant, probably about thirty years ago, and I've
never forgotten it. He said, oh, you should always just
be comfortable at eight percent should be your test rate.
(23:18):
And it seems that that wasn't a bad you know.
Speaker 4 (23:20):
Yeah, Well, we talked to all our clients about what
happens if they get to nine? So really, so there
are thereabouts. I mean it was only a couple of
years ago when interest rates were seven percent, the test
rates were nine.
Speaker 2 (23:32):
Okay, so I mean how much of an So currently
where what are the interest rates right now for mortgages?
Speaker 4 (23:38):
Somewhere between four and a half and five and a half,
depending if you're going one year.
Speaker 2 (23:41):
Or five years. So realistically people should be should plan
to be comfortable at around seven or six and a half.
Speaker 4 (23:47):
Yeah. Well, as I said, the banks are testing right now.
Speaker 2 (23:49):
At seven okay, so that's their test so just yeah, okay.
I would love to have your cause on this as well.
I eight hundred and eighty ten eighty. Let's have a
look at a few of the texts because we've got
a bunch of corresponds coming in. But if you want
to jump the queue, like Kiam, then get on the blow.
I eight hundred eighty ten eight. This one here is
from Shane. It says I bought my house in two
thousand and eight and the interest rates were nearly ten percent.
(24:13):
Then about six months later they started to come down.
I hope that answers your question. I don't know what
question that was?
Speaker 4 (24:19):
I wonder what you're doing two eleven? But as well,
Oh yes, and that was GFC there.
Speaker 2 (24:24):
Oh yeah, okay, yeah that was expensive, wasn't it? Okay,
what else we got here? It's the bank's job to
always offer. No, this is someone just teaching us the
obvious and reminding us what the obvious of the banks is.
It's the bank's job to always offer money to lend,
just like a human needs oxygen to survive, says John.
And I guess that's just reminding us what their gig is.
(24:48):
M Okay, here we go. Is it possible? Oh god,
I can't quite that one. I can't make sense. I'll
tell you what. We might take a quick break. We'll
come back and just to take eight hundred eighty ten eight.
I'll go and try and decide for the grammar of
this text that I started to try and read there
for a second. My guest is Pete. My guest is
(25:09):
Peter Norrisse's managing director of OPS Mortgages. How did you
decide what you needed to borrow when it came to
buying your house and how much of that was related
to what the banks would give you eight hundred and
eighty ten eighty. It is twenty five minutes to five.
News Talk said b Yes, News Talk said, be welcome
back to the show. My guest is Peter Norrisse's managing
(25:30):
director of Opeas Mortgages, and we're talking about how much
you should borrow versus how much your bank's willing to
lend to you. Part of the question has sort of
been rented redundant by Peter when he tells us that
the banks are reasonably conservative, conservative about how much they'll
lend you, and so as opposed to when I borrowed
(25:50):
fifteen years ago, I was frightened about how much money
I could borrow. And you're saying that's not so really
so much you need to be need to be boried
worried about?
Speaker 4 (25:58):
Yes, sorry, I mean to derail it. I mean there
are there are home now now, look, there are there
are plenty of cases where people can borrow. Oh, people
push their limits limits pretty hard and they will you know,
crames Come suggested the same thing, right like, he'll borrow
exactly what the bank tells them, right up to the
absolute limit. And investors can borrow more because they are
(26:19):
at seven times set to income where hiss owner occupied
are at six, so they are pushing it as hard
as they can.
Speaker 2 (26:25):
Yeah, it's funny. Actually we were actually we were interesting
only for a while when we first just to get
on top of things and some other expenses and all
that sort of stuff. In fact, I mean that does
make a difference to how long her mortgage is. But
then all of a sudden, you know, we managed to
pay a chunk of it off and catch up. But
it's a funny one, isn't it just working out how
quickly you should pay it off versus living your life
as well.
Speaker 4 (26:46):
Yeah, well that is an interesting point because we get
you know, you take your mortgage out over thirty years.
Most people will take that mortgage out and they'll they'll
probably take thirty years. The vast majority of people. There
are plenty of clients who will aimed to pay it
off faster, but the vast majority will stick to the
minimum payments and pay it off over a few years
or probably even longer, because they'll top up, they'll upgrade
(27:09):
their home, they'll sell and move all sorts of different things,
and restretch those terms back out to thirty years as
often as they can.
Speaker 2 (27:16):
That's interesting. I wonder how many, how many? How often
do people actually because maybe it's just because I don't
have grand ambitions. I was thinking, even if I won
the lotto, whether we'd moved from where we are because
I love our little house. You know, I probably would
actually be honest, let's not get ridict, but you know,
I don't particularly if I suddenly ended up getting paid
a lot more money or whatever, I'm not sure i'd
(27:38):
necessarily want to translate that into a bigger house. But
of course, a lot of people, you know, their first
time is literally just their first of many.
Speaker 4 (27:47):
Yeah, or yeah, exactly, the first of many, or their
sort of stepping stone too, eventually getting the house they
really want, which comes with as their income grows, as
maybe interest rates drop, and then suddenly they can borrow more.
They so do that to people?
Speaker 2 (28:01):
Is that your experiences? Most people will generally if they
can get lent more money, they will use it to
just do other things, travel up because I'm always or
or just buy an nicer house and keep buying a
nicer house.
Speaker 4 (28:14):
Yeah, well definitely. The other interesting one is, you know
the banks have got all these green loans that they're
giving out. It's say one percent for three years. It's
still a thirty year term. It's just one percent for
the first three years. So there'll be bulger clients that
will pay it off in that period of time. There'll
be vulgar clients or borrowers who will take thirty years
to pay that green loan off. That for the ev
car that won't be around us.
Speaker 2 (28:35):
Oh, that's actually one of one of the other things
I meant to raise with you because we've had There
are a couple of things that they my bank is offered.
I think there's one is a renovation loan where you
can borrow up to fifty thousand bucks for one percent.
I haven't dug into how that works. I should probably
talk to them about it, to be honest, but I'm
also sort of there's part of me that they say,
you have to take it all out at once. That's
(28:56):
the one. So you know, yeah, I want to borrow
ten now, then another fifteen, then another They say, look,
take it all out now, but you can have it
one percent for three years or something.
Speaker 4 (29:08):
Yeah, if it's a renovation one, it might be that
two point five percent.
Speaker 2 (29:11):
That one, that's the one.
Speaker 4 (29:12):
If it's specific to green solar EVS, those sorts of things,
then it could be one percent, could potentially be zero percent.
Speaker 2 (29:18):
What's your take on those those green loans, because ultimately
they're a way of the bank's bank. The bank is
banking on you not paying it off, not paying it off.
So so if you suddenly pay that off, then they'll
be like, oh, we won't anticipating that, but that's the
game we're in. But their banking that you're going to
spend another ten or fifteen years as that being part
of your mortgage.
Speaker 4 (29:39):
Yeah, it's the same as a zero percent Harvey Norman
high purchase for Yeah, for five years, they're banking on
you're not paying it off.
Speaker 2 (29:46):
How would you do the numbers? How do you do
the numbers on that sort of stuff too? You know,
most people see, okay, I can get cheap money for
either a renovation or for you know, putting solar panels
on the roof, great, fantastic, But how what's the best
way to do the calculations on that so they can
get it in their own head as to this looks
cool for the time being, but where you're at in
five or seven years time.
Speaker 4 (30:07):
Yeah, I have different takes on that versus for the
renovation loan versus the okay, the green loan, because if
you're buying a if you're borrowing fifty to buy a Tesla,
then what's the long what's the lifespan of that car?
Do you want to borrow that over thirty years or
do you want to try and pay that loan off
in the term that you're going to have that car.
(30:28):
Whereas a renovation you might be adding value to a
home that you're going to stay in for twenty years,
in which case that makes sense.
Speaker 2 (30:33):
So you can buy it, you can borrow that. You
use that one percent green loan for a.
Speaker 4 (30:36):
Car, yeah, for an evy Yeah, Okay, I'll.
Speaker 2 (30:40):
Just think about that, so I'll talk about this. Mind.
The straits of all moves are open. Sorry, Okay, here's
a couple of text here to get into m pay
it if possible. My daughter is fifteen, she'll be in
university soon. Interest may be up. But I'm a widow
and I've seen a house. Please ask Pete at what
(31:00):
age would he no longer recommend getting a mortgage at all?
At seventy plus, I'll need something smaller, so I'll only
need a small mortgage. Do banks refuse loans to seventy
to eighty plus year olds.
Speaker 4 (31:14):
That's a great question. So the banks apply what's called
an age in stage rule. So if you're over a
if you're getting closer to retirement age or over, what
the bank's are wanting to make sure is that they're
not going to have to sell that house from under you. Yeah,
all right, So they don't want to get into the
position where you can't afford your mortgage and they're needing
to sell your home. So, especially if it's over seventy,
(31:38):
it's going to be very, very difficult to get money
and you're going to need to demonstrate to the bank
how are you going to pay that off?
Speaker 2 (31:46):
So she, I mean, this person who's texting would have
to have income for a start, because you know, unless
I'm not sure how she's talking about paying that off.
What questions would get asked of there?
Speaker 4 (32:00):
Yeah, well income is going to be a big one.
You can't borrow money without income unless you're unless you
dealing with lenders you don't want to deal with.
Speaker 2 (32:06):
Yeah, okay, that is a difficult one. I wonder how
many people do actually get mortgages once they're sort of
beyond retirement age.
Speaker 4 (32:12):
The big one at that point is probably the reverse
mortgage is where you've got a lot of equity and
you borrow against the equity, something I'm a fan of,
not a big fan of.
Speaker 2 (32:21):
No, I'm not a fan of that either. Okay, here's
another one. Forty years ago, I married bought a house
with a thirty year mortgage. Apparently having a mortgage is
not a marriage, is not a marriage. Vow quickly. I'm
now sixty and I have five years left on the mortgage.
Dad said, oh god, I don't know why I'm reading
these texts out the punchline. No cancel that, cancel that text.
(32:44):
So in the short term for people to think about
their mortgage rates, what do you think the short term
prognosis is for the next sort of three to six months,
because it does tend to if you think interest rates
are something going to change big time. And I'm looking
with that cheap money we got that people ended up
spending a fortune on properties that now you know, But
how long do you think the window is for people
(33:04):
to sort of make decision on borrowing and locking in
a cheaper interest rate?
Speaker 4 (33:08):
What do you reckon If you look back historically, there's
lots of research around the fact that actually trying to
predict interest rates, it almost never goes the way where
you want it to go, where you're likely to have
more more success in. Again, this is not advice, but
there's lots of research to suggest just taking one years,
going one year, one year, one year consistently tends to
(33:30):
have you be able to ride out those waves and
come head on the better side as opposed to as
opposed to trying to predict what rates are going to
do in the short term, it looks like rates are
going into increase. Yeah, you've got to weigh that up
against your own plans.
Speaker 2 (33:44):
Okay, somebody, there's a question on green loans here. I
could almost answer this with a guess, but I won't.
Are there any banks that'll give you a green loan
if you don't bank with them and don't have a mortgage.
Speaker 4 (33:55):
My guess is no, no, because it's secured by property.
Speaker 2 (33:58):
Okay, so there you go. That's a really easy answer
on that one. Peter, interested in your thoughts on our
situation where a young family and Auckland who own a
townhouse in Mount Roskill, which is full of townhouses. We
have tenants and they're renting ourselves in a different suburb.
Is now the time to get rid of the townhouse?
Speaker 4 (34:14):
Oh?
Speaker 2 (34:14):
What do you think townhouse supply will go down in
Auckland with the looming construction crisis for best to hold on? Oh,
townhouses are a tricky one, aren't they. Yeah?
Speaker 4 (34:24):
Look, I mean I'm not a property advisor, and but
right now, if you look at the numbers, Auckland looks
like it's at the bottom of the cycle. Probably not
a great time to be flicking it.
Speaker 2 (34:35):
No. So, in other words, because it is the time
it takes to sell a townhouse is it's It's quite
tough work at the moment, isn't it.
Speaker 4 (34:42):
Yeah? I think I think the time it takes to
sell a lot of property at the moment is tough. So,
but would you want to sell a property when you're
at the bottom of the market. Probably not. When you're selling,
you want to be near the top. Right when you're buying,
you want to be at the bottom.
Speaker 2 (34:55):
It looks like, well, that's the ultimate quest for everyone
in a property market, doesn't it. I want to sell
at the top and bar and the bottom. It's like, wow,
not many people actually manage to do that.
Speaker 4 (35:03):
Ex you don't know where you are till we look back.
Speaker 2 (35:06):
And the only people who've brag about that are the
ones who've succeeded. The other ones who haven't, you never
hear them bragging about Hey, guess what, I'm really messed
up my time on that one. Hey, look, we'ving back
in with The one roof Property of the Week is next.
It's twelve minutes to five news Talk z.
Speaker 1 (35:19):
B the one roof Property of the Week on the
Weekend Collective.
Speaker 2 (35:24):
Yes, the one roof Property the Week is in Totonger,
and I've got to say it is absolutely gorgeous property.
It actually reminds me of something that's fairly near where
I live. But as I was looking at it, as
in fact I play guess where the property is, it's
pretty difficult to work it out. But it's got gorgeous
sea views. But it is one of the area's originals
(35:46):
and automoti and at one time it was the residence
of an orchard. And the property actually has a name.
It's elmdene e l m DN and locopies over a
quarter acre of prime flat land and automotive is ever
desirable henewa road. It's got a northerly aspect. I love
this expression peeps of the harbor. My house has peeps
(36:08):
of the harbor, but I trust me, not the sort
of PEPs of the harbor that make you think it's
going to add to its value, but a pep of
the harbor. Nevertheless, it's I don't know how to describe
the the vibe of it, but it's in fact. I
might bring you in on this, Peter. If you've seen
the property of the weekendn't you, what's your description of it?
Speaker 4 (36:28):
Yeah, it's got a lot of character. I think that
people of the harbor that they mentioned the photos, I
think it's got a little bit more than a peep too.
I'm just some things.
Speaker 2 (36:37):
They've been quite modest about that, haven't they. I'm trying
to for some reason, to me, it sort of conjures
up that sort of and this might be overplaying it,
but there's sort of the Rhode Island in the USA.
There's a certain sort of American influence to the house.
I don't know why I'm saying that, but do you
know what I mean? For some reason, I'm thinking of
(37:03):
Barbara Streisand's house, which is the subject of the Strides
and effect that that's a completely I was.
Speaker 4 (37:08):
Going to say, they're putting the house that we're talking
about in your suburb significantly different price.
Speaker 2 (37:14):
I mean, if it was in Sinhalia's properly like that.
In fact, I originally thought when I saw it, but
then I saw the price and I thought, God, In fact,
I would have thought even for Toranger. So the asking prices,
they've got an asking price on this two point four
nine to five million, two and a half mil. The
RV is to point two two, but I don't know
what that means when we sometimes write them off and
(37:36):
the estimate for the one roof a site is around
two point three. I would have thought, actually that even
while it's not in an Auckland, Taro is a really
you know, an incredibly fast growing part of a part
of our country. I actually thought that that was I
don't want to say cheap, because nothing that's two and
a half million would ever be cheap. But what's your
(37:57):
take on the value of it.
Speaker 4 (37:58):
It's a lot of house for two and a half
mil compared to what you get around us, No, I think,
so that's a good price.
Speaker 2 (38:05):
Yeah, so go and check that out. It is sixteen
hen now I rode to Moti and Totranger. I'm not
sure if we've got any parting words of advice on
their whole mortgage? Should you borrow as much as the
bank can give you? Because your comments Peter ware that
basically the banks are a lot more responsible. So the
question I was thinking about Back when we could borrow,
(38:26):
we did have to really put our brain into gear
and go, well, hang on a minute, they'll lend us this,
But what really should we any thoughts in terms of
some of the things you should really consider when you're
looking at the amount you borrow.
Speaker 4 (38:36):
I think the big thoughts are if the amount of
banks is that you can afford is more than what
you want to borrow, then you're good. If it's the
other way around, then you can look at things like
spending habits. You can look at things like credit card
limits and those though after pays and all those things
that can hinder your borrowing capacity. There are things that
(38:57):
you can do to improve your borrowing ability. All I'm
saying is I think the bank's put a lot of
stress testing, and they governed by you know, a lot
of rules and regulation do make it harder for them
to lend people money than what historically it's been.
Speaker 2 (39:11):
Do you know many people who borrow to go on
holiday and things like.
Speaker 4 (39:13):
That every now and again, not very often, because.
Speaker 2 (39:16):
I must say I'm always amazed that people go on
I know, the interest rates gone down. I've gone on
board a new boat and buy it. I'm sort of like, God,
your game. But I guess you.
Speaker 4 (39:23):
Know, horses for courses, haven't.
Speaker 2 (39:26):
Hey great c Peter, thanks for coming in. If you
want to check out what's the website for you guys
at Opez Ops Mortgages dot C and Opeas Mortgages dot
co dot nz. And that wraps up the One Roof
Radio show. And if you want to go and check
out that property of the week, by the way it is,
I didn't think I gave the address today sixteen Henawa
Hi n e Waa, road, Otomoti and tong so go
(39:50):
and check that out and we'll be back. That was
the That was the One Ruth Radio Show. But we'll
be back with the Parents Squad, which is next. We've
got a new guest on the show. She is doctor
Miriam Mikaylab. She's Public Health Fellow at the University of
Canterbury and look broadly speaking, do we worry to too
much about ruining our kids? Are we too worried about
being perfect parents? From just chill out and just go
with the fly. We just dig into that. Plus also
(40:13):
the shure fire ways, perhaps that you can mess your
kids up. We'll be taking your calls on eight hundred
eighty ten eighty. It is now four minutes to five.
News Talks B.
Speaker 5 (40:23):
God, it takes Chrisis, the far See a cowboy eyes
fas Joy Leave drinking Jack by myself. He's choosing Texas
ikon te drinking Jacob by myself. He's choosing Texas talking to.
Speaker 2 (40:48):
Come on, baby.
Speaker 5 (40:54):
Oh, just let up the God in.
Speaker 3 (41:00):
The fire.
Speaker 1 (41:03):
Ship. For more from the Weekend Collective, listen live to
News Talk ZEDB weekends from three pm, or follow the
podcast on iHeartRadio
Popular Podcasts
Hey Jonas!
Hey Jonas! The official Jonas Brothers podcast. Hosted by Kevin, Joe, and Nick Jonas. It’s the Jonas Brothers you know... musicians, actors, and well, yes, brothers. Now, they’re sharing another side of themselves in the playful, intimate, and irreverent way only they can. Spend time with the Jonas Brothers here and stay a little bit longer for deep conversations like never before.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com