June 3, 2025 • 36 mins
What if we told you your loyalty to your bank could be costing you thousands… and your bank is hoping you never notice? By popular demand, Jaclyn Walsh from Zella Money is back to chat why refinancing could be the sneaky power play your bank really hopes you don’t make. We’re breaking down how it works, when it’s worth it, and why a mortgage broker might be your secret weapon to getting the best possible loan for you. Whether you’re looking for a better rate, more flexibility, or just want to stop donating extra cash to your bank each month, this episode has everything you need to know.
In This Episode:
💸 How to know when it’s time to rethink your mortgage
💸 The surprising ways refinancing can save (or cost) you thousands
💸 Why cashback deals aren’t always the flex they seem
💸 What a good mortgage broker can do that your bank won’t
💸 And the number one excuse that’s keeping people stuck on bad rates
FREEBIE: Get our She's on the Money Mortgage rate calculator here.
For all your mortgage and refinancing needs, you can contact Zella here.
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Acknowledgement of Country By Natarsha Bamblett aka Queen Acknowledgements.
The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708, AFSL - 451289.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Hello.
Speaker 2 (00:01):
My name's Santasha Nabananga Bamblet. I'm a proud or the
Order Kerni Whaltbury and a waddery woman. And before we
get started on She's on the Money podcast, I would
like to acknowledge the traditional custodians of the land of
which this podcast is recorded on a wondery country, acknowledging
the elders, the ancestors and the next generation coming through
(00:23):
as this podcast is about connecting, empowering, knowledge sharing and
the storytelling of you to make a difference for today
and lasting impact for tomorrow.
Speaker 1 (00:33):
Let's get into it.
Speaker 3 (00:34):
She's on the Money, She's on the Money.
Speaker 4 (00:57):
Hello, and welcome to She's on the Money, the podcast
here to remind you that your financial loyalty could be.
Speaker 1 (01:03):
Quietly costing you thousands of dollars.
Speaker 4 (01:05):
I'm Victoria Devine and if you don't know, I'm also
the founder and director of Zela Money, your go to
team of mortgage finance experts, and today we're going to
dive into a topic that could literally put money into
your back pocket, refinancing. And today we are definitely mixing
things up. Instead of Beck or instead of Jess by
my side, I've brought in someone who lives and breathes
(01:29):
this stuff, because if we're going to talk about refinancing,
I want you to hear from someone who actually does
it every single day. Jacqueline Walsh has been on the
show before and she is one of our senior brokers
at Zela Money, and she's no stranger to the podcast.
When she joined us last time, the community were obsessed
and I mean same like I get it, So of
course we had to get her back.
Speaker 1 (01:49):
Jacqueline, welcome back to the show.
Speaker 5 (01:51):
Thank you.
Speaker 4 (01:52):
I'm excited that you're here and we get to have
a yap about finance again.
Speaker 5 (01:55):
I know we do it every single day, yeah, but
it's not.
Speaker 4 (01:57):
But we get to have it like on a company
couch instead of spinneach chairs, and that's like a little
bit different. Today Jack, we are going to be walking
through what refinancing actually looks like, how to know if
it's worth doing, and everything you need to consider before
making the switch. Jack, are you excited about this because
I feel like at the time of recording, the RBA
(02:19):
actually announced a point two five percent reduction on the
cash rate yesterday.
Speaker 1 (02:24):
Yes, and so I could not be.
Speaker 4 (02:27):
More perfectly timed in having you on the show because
now the cash rate is sitting at three point eight
five and it is the first time in two years
that it has sat below four percent, and I just
think everyone in our office, we're just so excited about that.
Speaker 6 (02:41):
Yeah, that was a big discussion about it. A few
of us thought maybe point five.
Speaker 4 (02:45):
Yeah, I feel like they're too conservative for that. Like
the whole time, I was like, Nahn nutshul, thank.
Speaker 5 (02:50):
You, gotta put it out there.
Speaker 4 (02:51):
I reckon we'll get another point twenty five maybe next
time the RBA meet or the time after that, because
I know that we're technically all of the economy, so
saying that by the end of the year, we are
very likely to head towards the three percent mark, which
would be oh, very nice.
Speaker 5 (03:07):
Look it's on its way down that We're thankful.
Speaker 1 (03:10):
Very very nice.
Speaker 4 (03:11):
But let's start the chat. For those who might not know, Jack,
what is refinancing?
Speaker 6 (03:15):
Okay, So it's essentially replacing your old home loan with
a new home loan. So that could be at the
same bank that you're with, or you can look at
going to another lender.
Speaker 5 (03:27):
There's like a whole different variety as to why you
would do this.
Speaker 1 (03:30):
Yeah, but it's not.
Speaker 4 (03:31):
I think a lot of people are like, oh, I
refinanced my loan recently, but they just called up their
bank and got a better rate.
Speaker 1 (03:37):
That's different.
Speaker 4 (03:38):
Refinancing is actually picking up the finance offer you have
and getting a completely new one. Yes, a bit of paperwork,
a bit of organizing, having a chat with a good broker,
but it's not so much about asking for a better rate,
which we actually recommend you do definitely, And if you've
got a good broker, like if you're a XYLA money client,
you know this already. We are already going to be
getting you guys better rates because it's part of our right.
Speaker 5 (04:00):
Like part of the service.
Speaker 4 (04:01):
Literally, when the cash rates go down, we are and
we've got a pinned where you slack at work, We've
got a pinned thread at the moment of all of
the dates when all of the banks are actually going
to be honoring that drop and letting us know, you know,
how much they're decreasing their interest rates by, so that
we can literally get on the phone and be like, hey.
Speaker 1 (04:18):
So you know all of our clients that's being passed
on right like lock it in, Eddie.
Speaker 5 (04:23):
And then when they come to us.
Speaker 6 (04:24):
We can obviously tell them yep, it's happening this date,
the bank's going to automatically pass it on or if
you need to do anything else yet.
Speaker 4 (04:29):
But if you don't have a broker, I would definitely
be considering calling your bank and going, hey, so just
confirming that's going to be passed on, because sometimes in
your terms and conditions it might be that yes, it's
a variable interest rate, but like you've got to call
them and lock in the lower rate otherwise they continue
to charge you the higher rate.
Speaker 6 (04:50):
Yeah, it's not guaranteed with every single bank that they
just cannot pass it on. Therefore your monthly your payment's
going to be less every single month. So yeah, if
you are directly with the bank, we definitely recommend jumping
on the phone and giving them a call.
Speaker 4 (05:01):
Yeah, And it's a good idea to do that. And
then if you haven't had any traction, maybe then's the
time to have a chat to a broker to go Okay,
well that didn't work, now what now what? Because we
have done whole episodes on this show about like loyalty tax.
Speaker 1 (05:16):
Yeah, being loyal it.
Speaker 5 (05:17):
Doesn't pay, it's completely gone out the window.
Speaker 1 (05:20):
Yeah, being loyal it doesn't pay.
Speaker 4 (05:22):
So what do you think about the I guess comfort
trap of sticking with your current lender. I think a
lot of people are like, oh, I don't want to move.
I really like NAB or Macquarie or A and Z
or whatever, like I've been with them for twenty years,
and like I banked with them and now I have
my loan with them. Why are people so comfortable staying.
Speaker 6 (05:41):
I don't even know if it's that they necessarily like
their bank like that they're you know, really want to
stay with them. I think that the idea of moving
is maybe just a little bit more daunting than it
should be. Yeah, totally, I do understand, like why people
get stuck or stay. I mean, everyone's so busy these
days that just having another task to do, and you know,
I think gone are the days where you used to
(06:03):
have to sit on the front of hours and beg
to put their rates down. Now, if you're directly with
a bank most of the time that you can just
jump on your app and I guess request a discount
that way or send through an email. But if you
have a broker, just shoot them off an email and
just see where you're sitting and they can just have
a look at comparing all the offers out there for you.
Speaker 4 (06:19):
Yeah, one hundred percent. And I guess how often should
we be reviewing our mortgages?
Speaker 1 (06:26):
What does that look like?
Speaker 6 (06:27):
I would say every six months, and I say six monthly,
just because both banks will only allow you to sort
of do a pricing review once every six months. If
you try and you know, do two or three in
that period and they.
Speaker 4 (06:39):
Just don't allow it and they say sorry, three months ago.
Speaker 5 (06:42):
You're done.
Speaker 6 (06:43):
Yeah, so six monthly definitely, But there's obviously other reasons
as to why you would look into that as well,
So not just that.
Speaker 5 (06:50):
Obviously the rbas reduce their rates.
Speaker 6 (06:53):
Want to make sure that we're getting the best interest
rate possible if there's been any changes to your circumstances,
So you know, if your house has gone up, or
you know, the naghbor down the road has just sold
their property and they've got a great outcome, and you
want to see what you're true and correct. Like LVR
so loan to value ratio looks like that can have
an impact on your rate as well, So it's definitely
worth checking.
Speaker 4 (07:12):
Yeah, one hundred percent, And I think that you know
you gave the advice call up your broker, but like
it's quite They don't want to say it's funny, but
it's interesting because some brokers do require that prompting of oh,
hey can you review my loan and they go, oh, hey, Jacqueline,
haven't spoken to you in a while.
Speaker 1 (07:29):
Yeah, yeah, yeah, I'll pick it up and have a
look at it.
Speaker 4 (07:32):
Whereas like we and this is not mean like trying
to stroke around egos, but like good brokerage practices will
have a pricing team like we do, and their job
is actually every single day going through the thousands of
clients we have and repricing their mortgage. So, like our clients,
once you kind of get in, you get on the cycle,
and every six months we can basically guarantee that your
(07:53):
mortgage has been reviewed, and it gets reviewed. We've already
called the bank, we've negotiated the lower rate, and you'll
just get email of probably a call from Jack being like, hey,
just wanted to touch base. How are you We actually
dropped your rate this week? Bye, I have a nice day.
There's actually no admin from your behalf, which I think
is if you're going to use a broker and like Honestly,
(08:14):
if we're going to make money from you and your loan,
I think we should be working for that. I don't
think that we should just be taking it and being like, oh,
let's cruise along. I just there's something about that that
makes me feel uncomfortable to not put clients consistently in
the best possible position.
Speaker 5 (08:28):
Well, we exactly right. We're going to do the work
for you.
Speaker 6 (08:31):
So the second that you do settle, like you said,
our pricing team will dirize every six months to do
that work for you. So you don't have to dom
on the phone, you don't have to send that email.
It's just sort of set and forget and we'll do
it for you.
Speaker 4 (08:41):
Yeah, one hundred percent. So when should we be considering refinancing?
I feel like the biggest push is when people see, oh,
the cash rates dropped, But there are six million reasons
why you would refinance. Talk me through some of your
recent refinances. Why are they refinancing?
Speaker 1 (08:57):
Jack?
Speaker 5 (08:58):
Oh?
Speaker 6 (08:58):
Like you said, there is so many reasons as to
why you would. It could be as simple as changing
your loan products. So if you're going from a fix
to a variable or vice versa, if you're needing to
access any equity, so you might be looking at consolidating
any loans or just cashing out some money for renovations
or whatever that looks like. Same with like I said,
(09:18):
if the house price has gone up, or if you've
made a lump some payment to your home loan and
it's changing that LVR. A lot of the banks now
are doing tiered interest rates, So if you're sitting between
that seventy to eighty percent mark, you might get one
rate you're sitting between sixty to seventy. So it's always
worth staying on top of. But there is so many
different reasons. It could even be just that you want
to change the loan term. So what I mean by
(09:41):
that is you might have a twenty loan term on
your current home loan, you're looking up forraing a little
bit more of cash flow. You might want to look
at extending that just while the interest rates are a
little bit higher, and then looking at bringing that back down,
you know, after they sort of drop a bit more.
Speaker 1 (09:54):
Yeah, one hundred percent.
Speaker 4 (09:55):
And like financial advice, I think gets confused a lot
of the time with mortgage brokers. I have this conversation
in my DMS on i'd say a weekly basis. People
will be like, oh my gosh, do I need to
see a financial advisor because I want to talk about
whether I should sell my property or rent it out.
And to me, that's not a financial advice question, because yes,
a financial advisor could sit you down and be like, okay, cool, Jacqueline,
(10:18):
You'd be in the best possible position.
Speaker 1 (10:19):
If you xyzed.
Speaker 4 (10:21):
But like a broker is going to be able to
model all of those scenarios for you and go, okay, Jack,
if you sold, it would look like this, and this
is what we would expect that property to sell for.
And also, this is how much equity you've got. This
is how much cash would probably come into your bank account,
and you'd be able to play with that.
Speaker 1 (10:37):
Okay, if we rented.
Speaker 4 (10:39):
It out, this is what we could do with it,
Like this is how much equity you've got to leverage
into another property, and like we're part of that decision
making team, Like, no, technically we can't tell you what to.
Speaker 1 (10:49):
Do, but we're just laying all the scenarios out and
be like, oh, would you look at that.
Speaker 4 (10:54):
That one looks like it comes comes out ahead, doesn't it.
And the client's often like oh my god, I would
never want to xyz if I could do this. And
so I think it's we're not leading you down the
garden path, but we're giving you every single stepping stove everything.
Pave your own path and work out what's going on.
And I mean you could go, oh, well, Jack, what
if I bought for six fifty? Oh, actually, what if
(11:15):
it was seven hundred. We can like model out all
of those different options. And I think that when you're refinancing,
going well, what's that even look like? Like you've called
your bank, you've got the lowest interest rate, but you
know it's not the lowest interest rate on the market.
Maybe you're going, well, what does it look like we've
owned this house for five years. Let's have a look
at what equity you've got. Because I think a lot
of the time people are surprised, if there've been homeowners
(11:39):
for a little while, at how possible and how easy
it might be to get into their next property, whether
that is you know, a bigger family home or an
investment property or whatever that looks like. Often we sit
down and go, did you realize you probably have like
one hundred and fifty thousand dollars of equity and they're like,
but I don't have that in my offset account.
Speaker 1 (11:57):
No, you don't.
Speaker 4 (11:58):
But the house is worth more than the mortgage that
you owe, and so we could actually use some of
that equity to buy an investment property and you don't
have to come up with any cash. So that's a
very popular reason we see in our community. I would
say as to why people are trying to like refinance,
because obviously that requires a different loan structure.
Speaker 6 (12:18):
Exactly, a lot of time people will put as much
money into the home loan to reduce that loan. So
instead of I guess having your savings sitting on the side,
you've got it in your home loan working for you.
So when the time comes that you want to look
at purchasing that next property, we are able to access
the equity and the extra funds that you've put into
that home loan and draw it back out for your
deposit for the next property.
Speaker 1 (12:38):
Yeah, exactly.
Speaker 4 (12:39):
And I think that a lot of people assume, oh, no,
that must be financial adviceor broker couldn't tell me if
I could, we can model it out. We can sit
you down and go, okay, cool, this is what that
would look like. This is what it would look like
if you did it over here over there. And I
think that that's the cool thing about it. It's free
as opposed to going and seeing a financial advisor who
would go, oh, so you you want to buy an
(13:00):
investment property and they will do your whole financial plan.
Speaker 1 (13:03):
That's cool.
Speaker 4 (13:04):
But like the question that you wanted answered was can
I afford it exactly? And I can work that out
for you with one of my brokers very quickly and
it won't cost you anything.
Speaker 1 (13:13):
So what are some.
Speaker 4 (13:15):
Signs that And I think this is a really important one,
and people don't realize that, what are some signs that
your mortgage maybe isn't working for you anymore? Like you
set it up, you thought you did absolutely everything. You
dotted all your eyes, you crossed all your t's, and
now maybe it's not working for you anymore.
Speaker 6 (13:30):
Well, I think, I mean, offsets aren't new, but they're
still quite relatively new. I guess in the lending world,
if you don't have an offset, or you haven't entertain
what that looks like, that might be something that you
need to consider, especially having your salary paid into an account,
or whether it's with the same bank or not with
the same bank, just having a look at the different
(13:50):
features that might be more beneficial to you.
Speaker 5 (13:53):
I guess yeah.
Speaker 4 (13:54):
I think a lot of people also, like if you're
in a bit of a pinch and you're like, oh,
I'm really feeling these mortgage repayments every single month, like
you don't have to kind of suffer in silence. You
can talk to a mortgage broker and go, okay, cool,
well what could we do. How could we refinance this
so that we're more financially comfortable today, but we still
have a plan to pay it off before retirement exactly.
(14:16):
And I think that that's an important factor as well,
because sometimes you might be worried about refinancing because you're like,
I don't want to start a brand new thirty year term,
Like I don't need a new loan to restart.
Speaker 1 (14:28):
I just I don't think that's a good idea.
Speaker 6 (14:29):
But that's probably the top one that comes through, is
that the refinancing. They assume that if you refinance, you
have to push it back out to thirty years, So
what do you do so in terms of when you're
looking at refinancing, we don't have to stretch it back
out of thirty years, But in some cases you might
look to do that just purely because trying to free
have a bit of cash flow at the moment. A
lot of the time clients will keep it at thirty
(14:52):
years so that they're contracted to thirty years and it's
the bare minimum payments. But then when they settle, they'll
jump online they can change it back down to, say
to twenty years. So I can tell you exactly what
that needs to look like and what you need to
change it to too, paid off in twenty years time.
But the beauty of it is, if you're contract to
the bare minimum, at least you know that if something
happens with work or you want to go on yeah travel,
sit back, you can just drop it down for that
(15:14):
month or however long you want, back to the bare minimum,
and it's in control with you, like you don't have
to contact.
Speaker 4 (15:19):
You're not going to get in trouble with that, like
you are just yeah, killing it yourself.
Speaker 6 (15:23):
Yeah, I love So then you might come back, you know,
after you've traveled for six months and say, right, you
know I've got a promotion or I've got you know,
more savings than I thought, I can make bigger repayments. Now,
if I wanted to chop off, say another five years,
what do my repayments need to look like?
Speaker 4 (15:36):
Now?
Speaker 1 (15:36):
Yeah?
Speaker 4 (15:36):
Yeah, And do you know what, Jack, you don't know
if there's but at the time that this episode is dropping,
I have a free mortgage repayment calculator dropping on our
website as well, So we'll put the link to that
in our show notes as well.
Speaker 1 (15:49):
But I think that that.
Speaker 4 (15:50):
Will be like a really helpful tool because it's a
really basic spreadsheet that I've built that is, like you
put your mortgage amount in, you put your interest rate
amount in, and then you can play around with the
repayments and see the time frame that it would take
to pay that off. Because there's obviously a lot of
maths that goes into the back of that that's not
just like one plus one equals too, like your interest
(16:11):
rate is kind of like it's compounds, like compound interest
on an investment would, So there's a lot of like
you end up paying a lot more of the mortgage
off in the later periods of your life and a
lot more interest at the start. So anyway, I will
have that in the show notes for you to download
for free, so that you can kind of play around
with that or just even see, well, what would it
look like if I could refinance and drop my rate
(16:32):
by you know, zero point two five percent? Like does
that actually put me in a better position? How much
of a good position? Because it's very handy to know
and feel like you're in control.
Speaker 6 (16:42):
And you might be in a position where with the
rate cuts, you know the point if I've I mean,
obviously everyone's a static about this and that means more
money in it.
Speaker 4 (16:49):
But we're so excited, like we are happened yesterday for us,
So like when you guys hear this, like just remember
having yesterday.
Speaker 1 (16:56):
We're going out for lunch today, Like we are excited.
Speaker 6 (17:01):
You know, you might be in a position where you
can keep that month your payment as is now and we're.
Speaker 1 (17:06):
Paying the same amount.
Speaker 5 (17:07):
Yes, some people.
Speaker 6 (17:08):
Want that money back in their back pocket, you know,
free up cash flow.
Speaker 1 (17:11):
I get it.
Speaker 6 (17:12):
Some people might be in a position where they can
keep it. Therefore they're going to end up paying off
their mortgage quicker.
Speaker 4 (17:17):
Yeah, Like a good example there, Jack, if you're paying
like let's say two thousand dollars a month to your
mortgage and you're like, but I'm comfortable with that, why
would I refinance? Well, if we refinance, you're going to
continue paying that two thousand dollars a month, and that
you're fantastic a lot less, you're paying a lot less interest,
and that mortgage is going to be gone sooner. Yes,
so yes, you might be in a quote same position
(17:39):
day to day, but long term, you're putting yourself in
the best possible position. So what would you say to people?
And I've heard this a million times and I'm sure
you have to who say, Look, refinancing is too much effort,
can't be bothered.
Speaker 6 (17:51):
I can see why people would think that. I mean,
it's definitely not as.
Speaker 4 (17:56):
Now we're saving money jack, like we are saving like
we save.
Speaker 1 (17:59):
Clients more my years of dollars, Like over the life
of your loan.
Speaker 4 (18:03):
I can almost guarantee that refinancing down point two five percent.
It's not like fifty one hundred dollars, it's tens of
thousands of dollars over that you're saving life. Yeah, we're
not talking like oh yeah, why bother Like a pair
of shoes, it's not a pair of shoe.
Speaker 1 (18:18):
It's a whole last caravan. You want the.
Speaker 4 (18:21):
Shoe store back yeah, so it's interesting how people go.
Oh but week to week it does an impact, Yes,
it does long.
Speaker 6 (18:27):
Term, I know, I see why people would think it's
in the too hard basket.
Speaker 5 (18:32):
The aim is to make it as painless as possible,
Like we don't.
Speaker 1 (18:36):
Want these to be a paople. I want you to
love us, not by us.
Speaker 6 (18:40):
Yeah, I mean yes, it is like a normal application
if you would say, go purchasing property. We do need
your income documents, we do need to see bank statements,
But like I said, we'll make it as painless as
possible and.
Speaker 5 (18:52):
As quick as possible for you.
Speaker 6 (18:54):
If you are trying to say, match this up with
like the refinance with say an fixed period date, just
let us know so we can try and you work
with you and try and match up those dates.
Speaker 5 (19:04):
But if we're not aware of that you're trying to
match it up, you know it might.
Speaker 4 (19:07):
We just give us as much information as possible, Like
the more info the better. Like it's such a I
said this about financial advice, and the same is for
mortgage broking, Like it's such a privileged position to be
in to like know how you feel about your life
and your goals and what you want to achieve, but
also like financially what you're doing, Like, we are so
lucky to be so trusted, but like you do need
(19:29):
to find a broker that you trust. You can't just
use anybody who you go, oh, my friend, use this guy.
He seems a bit weird, but it's fine. Like I
want you to be so confident that you're like no, no, no, oh,
so Jack, we were actually thinking what would our mortgage
your payments look like, Like what if we planned on having
a baby next year? Yeah, because that does impact your serviceability,
(19:49):
like a dependent joining their family.
Speaker 1 (19:52):
Is going to drop your borrowing?
Speaker 4 (19:54):
What actually, yes, and so we might go right well
in that case, we're not going to tell you where
to get pregnant, but like maybe let's try buy sooner
rather than later so we can lock in a good
rate and then we can talk about a baby a
little bit late, Like we can.
Speaker 1 (20:08):
Have those conversations.
Speaker 4 (20:09):
And if you're not trusting somebody with you know, being
able to have candid, nice conversations like that, like maybe
they're not the right fit, because like we want to
work as hard as possible to achieve your goals. Like
when you win, we win. And I think that that's
a really important reminder, Like if you don't feel comfy
being like, oh hey Jerry, Yeah, so what would my
(20:30):
borrowing capacity be if I had another baby?
Speaker 1 (20:32):
Like, yeah, I don't want.
Speaker 4 (20:33):
To talk to Jerry about my baby place. But Jack,
I'm a cool Jack, Like, it's not just about us.
It's more like, find someone that you just really gel with.
Because from my perspective, sometimes people see the relationship you
have with the mortgage brokers transactional. Yeah, but it's not
like if you find a good mortgage broker, they are
on your team for the life of your loan.
Speaker 1 (20:56):
That's like thirty years of us checking in.
Speaker 4 (20:59):
Always make sure you've got the best rate, talking to
you about, you know, potential investment opportunities. Okay, cool Jack,
you've got like enough for a deposit? Did you want
to leverage that? What does that look like? Are you comfortable?
Like we want you to be in the best possible
position ever, I.
Speaker 5 (21:13):
Really like you comment around. You know, when you win,
we win. It really does feel like that we're.
Speaker 1 (21:18):
Going out for lunch guy, because your interest rate dropped.
Speaker 6 (21:22):
I mean, who wants to be paying any more money
in interest if you don't have to one hundred Like
I just we're on cheese on the money, Like, I'm
not here to waste my money.
Speaker 1 (21:31):
No, I didn't say I always spend it in.
Speaker 4 (21:33):
Line with other people's values, but like, I want to
be able to be in the best possible financial position. Now,
I think a lot of people are listening and they're like, look,
maybe refinancing is worth it, but how do you actually
do it?
Speaker 1 (21:45):
Is the question?
Speaker 4 (21:46):
So up next we're going to talk about the features
that actually matter, the fees that you need to watch
out for, and how to spot a deal that's actually
worth switching for.
Speaker 1 (21:53):
So guys don't go anywhere.
Speaker 4 (21:59):
All right, So we're back, and I'm very excited about
this because we've covered when refinancing makes sense and why
it can feel a little bit overwhelming. But what happens
when someone actually does it? Like, if we're going to
go and do the whole refinancing thing, can you just,
I guess, maybe share a client win that you've had recently,
someone who thought maybe it was too hard but ended
(22:19):
up saving a whole heap of money.
Speaker 1 (22:21):
You're like, yep, everybody there, because otherwise it wasn't refinance.
Speaker 4 (22:26):
We also, I guess if you come to a mortgage broker, right,
and I know it's not worth three fun.
Speaker 5 (22:31):
You will tell you.
Speaker 4 (22:33):
We're not going to like, Babe, we don't want you
to do the admin and go through hoops to then
think that we didn't do anything.
Speaker 6 (22:38):
No, it did to be beneficial for you to do
it to make the move.
Speaker 5 (22:43):
We're gonna like lay it all out there.
Speaker 6 (22:45):
We're going to compare it all, including like the discharge
fees and the new like signing up fees and things
like that, and if it doesn't make sense, we will
tell you stay put, let's chat soon.
Speaker 1 (22:55):
Yeah, Like just sit pretty.
Speaker 4 (22:56):
You've actually got a pretty good deal and that's a
good position to be in as well, because and you
know that you're in the best possible position currently.
Speaker 1 (23:02):
But at least you're checking right, Yeah, exactly.
Speaker 4 (23:05):
So for anyone who's I guess never gone through this before,
because I think a lot of our community they've just
bought their first homes in the last few years and
maybe they've never refinanced. What does the refinance process actually involve?
So like, let's say I want you to do it
for me, Jack, I pick up the phone and go, hey, Jack,
you are now my official broker.
Speaker 1 (23:22):
What do I do?
Speaker 6 (23:24):
So I guess from here we would compare obviously rates
number one, looking at you know, getting a lower rate,
so less monthly repayments, things like that. We're going to
look at the discharge fees, Like I said, what that
looks like the land titles office fees to discharge the
mortgage from the loan.
Speaker 4 (23:42):
That's a lot of fees. I don't think a lot
of people thought about.
Speaker 6 (23:45):
No, but we will lay it all out on table
for you, so we will compare it all. We'll send
you an email. It's all you know, their fee to
visually see it. So we're talking. You know what your
rate is, what your payment is, what your startup fees
look like.
Speaker 5 (23:58):
You discharge fees any of you and your fees with
the new bank. You may or may not have had one.
Do you have one now?
Speaker 6 (24:05):
So we've got to weigh it all up and make
sure it's still beneficial when taking everything into account.
Speaker 4 (24:10):
Yeah, absolutely, so talk to me about Obviously I'm.
Speaker 1 (24:13):
Very pro broker.
Speaker 4 (24:14):
I own a brogage broker is kind of like I
own a mortgage breaking business. Obviously am pro broker, but
like I adore the idea of a broker for a
number of reasons. But like Jack, why wouldn't someone just
go directly to a bank instead of, you know, talking
to a.
Speaker 1 (24:28):
Broker, Because that's a very valid question.
Speaker 5 (24:31):
Yes it is. I don't I want to say.
Speaker 4 (24:35):
Jacquelines or in PC in the nicest possible way. She's
very complimentary of everybody in the industry, honestly, sometimes to
her detriment.
Speaker 1 (24:42):
But I think it's.
Speaker 4 (24:44):
Look, I used to work for a bank, so but
you did it, really you did a different role. But
I think it's interesting because like if you go to
the bank, it's kind of like going down to Let's say,
you want to like go buy a packet of chips, right,
So you walk into Smith's, the Smith's factory, and you say,
what chips.
Speaker 5 (25:03):
Have you got?
Speaker 1 (25:04):
Yeah, and they're gonna.
Speaker 4 (25:05):
Show you all of the chips that they have in
their particular range. They're going to go, oh, we've got
these crinkle cut lines, they're really popular. We've got this, this,
and this, and you go, okay, cool, Like that's all
the chip ranges. I'm going to pick from that, and
you've got maybe like five options, right.
Speaker 5 (25:19):
I'm going to say two or three?
Speaker 4 (25:21):
Yeah, Okay, Well, I don't know I don't actually buy
chips that often. I just thought it was a good example.
But then you go, all right, well, maybe I'll just
go down to Coals or Woolies. And that's like you're broker.
Speaker 1 (25:31):
You go in. There's a whole damn aisle. There's every opportunity.
Speaker 4 (25:34):
There's a Red Rock Deli, you've got the gluten free options,
you've got you know, Thins, You've got Lays, You've got
Smith's is there too, Yeah, but you now have so
many more options, so many more price points, so many
more flavors and benefits. That's I guess the difference. So yes,
you absolutely could go direct. If you're like, I don't care,
I only want a bank with nab ever Victoria, that's great.
(25:58):
You could be paying loyalty tax because you're not getting
the best possible deal. You're not getting the best possible structure.
Like we write now loans all the time. So don't
think that RV doesn't like that. It's just an example
because like for some clients that works perfectly, but other
clients were like, oh my goodness, have you heard of Macquarie?
Like this particular platform is going to give you unlimited
offset accounts and this might make the most sense for you.
(26:19):
So I think it's all about options and it is
free to go to safe ways and look at all
the options.
Speaker 1 (26:26):
Like they're not paying an entry fee.
Speaker 4 (26:28):
It's not like going and seeing a financial advisor where
you have to pay thousands of dollars. We are very
lucky in that we get paid by the banks, but
only if your loan settles, only if it works. So
that is to me really important because some people would go, oh,
that feels a bit weird, but like, at the end
of the day, you're not being charged more as a consumer.
(26:50):
The bank is sharing their profit with us as kind
of like a finder's fee. They're going, thanks Jack, we
wouldn't have had that client without you, so we're going
to split our profit with you. The client is always
going to be in the best possible position. And because
of Australian law and regulation, not only do we have
to make sure you're in the best possible position, we
have to give you three options every single time. You're
(27:12):
not just getting one. You will always get given here
are the top three options for you personally. So I
think that that's not what would happen if you went
to a mortgage broker who works directly for a bank
or went to a bank directly. And it's not about
like they're good brokers, like they are intelligent, they are smart,
they just don't have.
Speaker 1 (27:33):
Access to the wide range exactly.
Speaker 4 (27:36):
And so just seeing a mortgage broker, you go, but
I have a broker, Well, who were they employed by?
If they're employed by a bank. To me, I would go, well,
maybe you're not getting as many options put on the
table as possible. They could be the best person in
the entire world. I mean, you heard before Jacqueline used
to work for a bank, but when you did, you
would have had a limited range of opportunity.
Speaker 6 (27:55):
Pretty much looking at variable or fix really exactly. They
will give you, obviously the best product that they can offer,
I'm sure of it. But like you said, if you
go into a broker, we've got I mean sometimes you've
got sixty different lenders on your panel, so there's sixty
different dictions that we can, yeah, put in the mix
and show you exactly.
Speaker 4 (28:16):
And I think that that's really important to take into
consideration as well. So Jack, beyond chasing a lawer rate,
what loan features should we actually be looking for to
make sure that refinancing actually improves our financial situation. Like
I feel like so many times people just really get
stuck on the numbers.
Speaker 1 (28:32):
And they're like, I just want to lawer rate, I
just want to lower rate. What else are we looking for? Fees?
Speaker 6 (28:37):
I guess, and your fees accounts offsetting fees. Some banks
will have it set per month or per year to
take into account if you're paying any of those fees.
Number one, do you have an offset? Is it going
to be worth you introducing an off set? Do you
have separate banking at different banks? Is it worth looking
at putting it maybe with the one bank, and then
(28:59):
that way we can put your savings into one of
the offsets, or your holiday fund or your spending funds.
Because all of that money that is in an offset
is working for you. So you know, you're paying less
in interest on your mortgage every single it's calculate daily actually.
Speaker 4 (29:13):
So it's so I guess on that as well. Your
mortgage broker can and should, from my perspective, be helping
you with cash flow. So they should be sitting down
and going, all right, so this is how we're going
to budget. This is what this looks like. This money
goes into this. It's one of our favorite parts of
our job. Like, once you've got your loan, being able
to go okay, cool, We're going to put you in
the best possible position by doing ABC and D. Got
(29:36):
any questions, call me right because I'll know, and it's
just so fun. We obviously have lots of different fees
and that can be really overwhelming.
Speaker 1 (29:45):
But the flip side.
Speaker 4 (29:46):
Is cash back offers, Like I feel like they're probably
going to make a resurgent soon because of the dropping
cash rate, and obviously lots of people have their eyes
on lots of different opportunities. So you might see some
of the big banks going refinance with us and we'll
give you three thousand dollars cash or two thousand dollar.
When you see it all the time, it would be.
Speaker 6 (30:06):
I mean every single bank. I felt like I was
playing part in that. Probably two or three years ago, it.
Speaker 4 (30:11):
Was everywhere in COVID, everybody was doing a cash back off. Yeah,
and brokers can access that for you too. You don't
have to go direct to that bank, like you call
your broker first.
Speaker 5 (30:21):
Yeah.
Speaker 6 (30:21):
Now it has sort of dropped. There is only probably
limited banks that are offering it. You got to wait
it up like sometimes I do think it probably is
a shiny distraction. I think it's easy if you don't
have a broker who's obviously, you know, going to like
I said, laid all out on the table for you
to show you every little single fee and charge and
(30:42):
take everything into account. I think if you're doing it
direct to bank, it's easy to go, well, you know
they're going to offer me two thousand dollars or three
thousand dollars.
Speaker 5 (30:49):
Why wouldn't I.
Speaker 4 (30:50):
Yeah, money win, Yeah, but long term it might cost
you more than I do find sometimes the interest rate
is probably slightly higher than.
Speaker 5 (30:58):
What you could get. But I mean not to take
it out.
Speaker 6 (31:01):
You just got to wigh up where that pinpoint is
in your loan term, Like you know, after one year,
is it now that we're at that break point where
it's no longer working, and do we need to look
at now either refinancing yet again to get a lower
interest rate or you know, sometimes people will just slip
into the comfort of just staying with them again, and
that's probably how what.
Speaker 4 (31:19):
They're doing exactly probably got you in the door with
the shiny thing, and then you stayed because it was warm.
Speaker 3 (31:24):
Here.
Speaker 4 (31:25):
I think that's interesting as well, because yeah, so many
times we think that's a good deal. But like instant
gratification versus delayed gratification.
Speaker 5 (31:33):
Sometimes forget like most of the time your loan is
over a thirty loan.
Speaker 4 (31:37):
Term, yeah, and three grand over the long term, maybe
you're paying ten thousand dollars more.
Speaker 1 (31:41):
Maybe not.
Speaker 6 (31:42):
I'm sure that that three thousand dollars is probably not
sitting in your offset, you know, working for you.
Speaker 5 (31:47):
I'm sure that's already been spent.
Speaker 1 (31:48):
And oh yeah that in my head, that's free money. Yeah,
that's not my saving that last free money.
Speaker 5 (31:54):
Yeah, going on a holiday with it.
Speaker 1 (31:55):
Yeah, yeah, money. We so talk to me about.
Speaker 4 (31:59):
Obviously, we want to be shopping for a better rate
because it is important to get the best deal possible.
But how does that impact my credit score?
Speaker 5 (32:05):
I mean, if you're just looking like window.
Speaker 1 (32:08):
Shopping, little yeah we window shopping, Okay, window.
Speaker 6 (32:10):
Shopping, it's not going to obviously impact your credit score.
So if we're just you know, seeing what's out there,
reaching out to a mortgage broker to see what options
there are.
Speaker 5 (32:19):
Then your credit file is not being touched whatsoever.
Speaker 6 (32:22):
If we're actually committing to it, and actually going ahead
with the refinance.
Speaker 5 (32:27):
Then obviously, yes, it is going to have a hit
on your credit file.
Speaker 6 (32:31):
That's not necessarily going to have a negative effect. However,
multiple times in a short period of time.
Speaker 1 (32:38):
Yes, this.
Speaker 4 (32:39):
Don't go talk to lots of brokers and submit lots
of inquiries and do all of that, because I don't
know how to say this, but you are disadvantaging all
of the brokers if you are shopping around. I'm not
saying don't have an initial chat with them, and if
they're not the broker for you, go find somebody else.
But don't go down the garden path. Don't like, submit
(33:00):
a credit inquiry with a broker just to.
Speaker 1 (33:03):
See what options they can put on the table for you.
Speaker 5 (33:05):
They don't need to be doing.
Speaker 4 (33:07):
Yeah no, because all good brokers, honestly should be able
to analyze your situation in exactly the same way as
the next broker down the road and get the same outcome.
And if they're not, I'm actually a little bit concerned.
The important cherry on top there is like the relationship
you have with them the above and beyond, what additional
things does that business offer you in terms of support
(33:28):
and ongoing client relationship and like whatever that looks like.
And I think that that's really important to consider as well,
because it's just it's so important that we're not just
making multiple inquiries on our credit score just to see
because that can drop your credit score and therefore make
it harder to get a better deal exactly.
Speaker 6 (33:48):
Because when you a credit I think we've spoken about
that previously, but credit scores can have an impact on
which lenders will and won't take you. So therefore, instead
of having you know, the door open to say, like
a had sixty different lenders, you might only be able
to now look at three options. Yeah, so it is
hindering where you can go and what you can get.
Speaker 4 (34:07):
Yeah, and a broker we'll be able to guide you
on that too, because like if you've got terrible credit
or something, you can still have a chat and be like, well,
what can I do Jack to either increase my credit score?
Or like can I ever move while they have a
bad credit score? And can you move? Like if my
credit score is not amazing, Jack, don't have to wait?
Speaker 1 (34:23):
What can I do?
Speaker 6 (34:24):
We need to obviously have a look at it, see
what it is, see what the actual background is, and
what we can do, but there's certainly options. We've definitely
had clients that have come to us that we've been
able to move from a much lower rate that thought
that their credit score wasn't too It.
Speaker 4 (34:37):
Wasn't amazing incredible, but like once we have a couple
of conversations with the bdms and the banks, they're like,
oh that makes sense. No, we'd be willing to accept
them all good. That's where the relationship part comes into it.
A lot of the time, Jack, this has been incredible,
but unfortunately it is all we have time for today.
Thank you so much for jumping back on the show. Genuinely,
(34:57):
I feel like I was like not pulling teeth, but
I'll it's.
Speaker 1 (35:00):
Like, so could you do this week? What about next week?
Speaker 4 (35:02):
Can you come on the show and talk about refinancing,
because like, I'm getting a lot of questions about refinancing.
I feel like you always explain stuff in a really
clear and really practical way that just makes sense, and
I know that people are going to find this really helpful, so.
Speaker 1 (35:14):
I appreciate it.
Speaker 4 (35:16):
Oh thanks, no, of course, And guys, it doesn't need
to be a massive process, and getting the right support
can make it a whole lot easier, even if you're
just checking if your rate is going to drop. Is
a great first step, and of course, if you've got
questions or you want to help figuring out if it
is the right.
Speaker 1 (35:31):
Move for you.
Speaker 4 (35:32):
The team at Zela Money we literally always here. I'll
put our contact details in the show notes because if
I can't shamelessly promote my own business on my own show,
why are we here? And as always, if you enjoyed
this episode, make sure that you're following the show, hit
subscribe and leave us a review and share it with
someone who you think might need a little refinancing nudge.
We'll see you again on Friday. Bye, guys, Bye. The
(36:01):
advice shared on She's on the Money is general in
nature and does not consider.
Speaker 1 (36:05):
Your individual circumstances.
Speaker 4 (36:07):
She's on the Money exists purely for educational purposes and
should not be relied upon to make an investment or
financial decision. If you do choose to buy a financial product, read.
Speaker 7 (36:17):
The PDS TMD and obtain appropriate financial.
Speaker 1 (36:19):
Advice tailored towards your needs.
Speaker 7 (36:22):
Victoria Divine and She's on the Money are authorized representatives
of Money sheper Pty Ltd ABN three two one six
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Hello.
Speaker 2 (00:01):
My name's Santasha Nabananga Bamblet. I'm a proud or the
Order Kerni Whaltbury and a waddery woman. And before we
get started on She's on the Money podcast, I would
like to acknowledge the traditional custodians of the land of
which this podcast is recorded on a wondery country, acknowledging
the elders, the ancestors and the next generation coming through
(00:23):
as this podcast is about connecting, empowering, knowledge sharing and
the storytelling of you to make a difference for today
and lasting impact for tomorrow.
Speaker 1 (00:33):
Let's get into it.
Speaker 3 (00:34):
She's on the Money, She's on the Money.
Speaker 4 (00:57):
Hello, and welcome to She's on the Money, the podcast
here to remind you that your financial loyalty could be.
Speaker 1 (01:03):
Quietly costing you thousands of dollars.
Speaker 4 (01:05):
I'm Victoria Devine and if you don't know, I'm also
the founder and director of Zela Money, your go to
team of mortgage finance experts, and today we're going to
dive into a topic that could literally put money into
your back pocket, refinancing. And today we are definitely mixing
things up. Instead of Beck or instead of Jess by
my side, I've brought in someone who lives and breathes
(01:29):
this stuff, because if we're going to talk about refinancing,
I want you to hear from someone who actually does
it every single day. Jacqueline Walsh has been on the
show before and she is one of our senior brokers
at Zela Money, and she's no stranger to the podcast.
When she joined us last time, the community were obsessed
and I mean same like I get it, So of
course we had to get her back.
Speaker 1 (01:49):
Jacqueline, welcome back to the show.
Speaker 5 (01:51):
Thank you.
Speaker 4 (01:52):
I'm excited that you're here and we get to have
a yap about finance again.
Speaker 5 (01:55):
I know we do it every single day, yeah, but
it's not.
Speaker 4 (01:57):
But we get to have it like on a company
couch instead of spinneach chairs, and that's like a little
bit different. Today Jack, we are going to be walking
through what refinancing actually looks like, how to know if
it's worth doing, and everything you need to consider before
making the switch. Jack, are you excited about this because
I feel like at the time of recording, the RBA
(02:19):
actually announced a point two five percent reduction on the
cash rate yesterday.
Speaker 1 (02:24):
Yes, and so I could not be.
Speaker 4 (02:27):
More perfectly timed in having you on the show because
now the cash rate is sitting at three point eight
five and it is the first time in two years
that it has sat below four percent, and I just
think everyone in our office, we're just so excited about that.
Speaker 6 (02:41):
Yeah, that was a big discussion about it. A few
of us thought maybe point five.
Speaker 4 (02:45):
Yeah, I feel like they're too conservative for that. Like
the whole time, I was like, Nahn nutshul, thank.
Speaker 5 (02:50):
You, gotta put it out there.
Speaker 4 (02:51):
I reckon we'll get another point twenty five maybe next
time the RBA meet or the time after that, because
I know that we're technically all of the economy, so
saying that by the end of the year, we are
very likely to head towards the three percent mark, which
would be oh, very nice.
Speaker 5 (03:07):
Look it's on its way down that We're thankful.
Speaker 1 (03:10):
Very very nice.
Speaker 4 (03:11):
But let's start the chat. For those who might not know, Jack,
what is refinancing?
Speaker 6 (03:15):
Okay, So it's essentially replacing your old home loan with
a new home loan. So that could be at the
same bank that you're with, or you can look at
going to another lender.
Speaker 5 (03:27):
There's like a whole different variety as to why you
would do this.
Speaker 1 (03:30):
Yeah, but it's not.
Speaker 4 (03:31):
I think a lot of people are like, oh, I
refinanced my loan recently, but they just called up their
bank and got a better rate.
Speaker 1 (03:37):
That's different.
Speaker 4 (03:38):
Refinancing is actually picking up the finance offer you have
and getting a completely new one. Yes, a bit of paperwork,
a bit of organizing, having a chat with a good broker,
but it's not so much about asking for a better rate,
which we actually recommend you do definitely, And if you've
got a good broker, like if you're a XYLA money client,
you know this already. We are already going to be
getting you guys better rates because it's part of our right.
Speaker 5 (04:00):
Like part of the service.
Speaker 4 (04:01):
Literally, when the cash rates go down, we are and
we've got a pinned where you slack at work, We've
got a pinned thread at the moment of all of
the dates when all of the banks are actually going
to be honoring that drop and letting us know, you know,
how much they're decreasing their interest rates by, so that
we can literally get on the phone and be like, hey.
Speaker 1 (04:18):
So you know all of our clients that's being passed
on right like lock it in, Eddie.
Speaker 5 (04:23):
And then when they come to us.
Speaker 6 (04:24):
We can obviously tell them yep, it's happening this date,
the bank's going to automatically pass it on or if
you need to do anything else yet.
Speaker 4 (04:29):
But if you don't have a broker, I would definitely
be considering calling your bank and going, hey, so just
confirming that's going to be passed on, because sometimes in
your terms and conditions it might be that yes, it's
a variable interest rate, but like you've got to call
them and lock in the lower rate otherwise they continue
to charge you the higher rate.
Speaker 6 (04:50):
Yeah, it's not guaranteed with every single bank that they
just cannot pass it on. Therefore your monthly your payment's
going to be less every single month. So yeah, if
you are directly with the bank, we definitely recommend jumping
on the phone and giving them a call.
Speaker 4 (05:01):
Yeah, And it's a good idea to do that. And
then if you haven't had any traction, maybe then's the
time to have a chat to a broker to go Okay,
well that didn't work, now what now what? Because we
have done whole episodes on this show about like loyalty tax.
Speaker 1 (05:16):
Yeah, being loyal it.
Speaker 5 (05:17):
Doesn't pay, it's completely gone out the window.
Speaker 1 (05:20):
Yeah, being loyal it doesn't pay.
Speaker 4 (05:22):
So what do you think about the I guess comfort
trap of sticking with your current lender. I think a
lot of people are like, oh, I don't want to move.
I really like NAB or Macquarie or A and Z
or whatever, like I've been with them for twenty years,
and like I banked with them and now I have
my loan with them. Why are people so comfortable staying.
Speaker 6 (05:41):
I don't even know if it's that they necessarily like
their bank like that they're you know, really want to
stay with them. I think that the idea of moving
is maybe just a little bit more daunting than it
should be. Yeah, totally, I do understand, like why people
get stuck or stay. I mean, everyone's so busy these
days that just having another task to do, and you know,
I think gone are the days where you used to
(06:03):
have to sit on the front of hours and beg
to put their rates down. Now, if you're directly with
a bank most of the time that you can just
jump on your app and I guess request a discount
that way or send through an email. But if you
have a broker, just shoot them off an email and
just see where you're sitting and they can just have
a look at comparing all the offers out there for you.
Speaker 4 (06:19):
Yeah, one hundred percent. And I guess how often should
we be reviewing our mortgages?
Speaker 1 (06:26):
What does that look like?
Speaker 6 (06:27):
I would say every six months, and I say six monthly,
just because both banks will only allow you to sort
of do a pricing review once every six months. If
you try and you know, do two or three in
that period and they.
Speaker 4 (06:39):
Just don't allow it and they say sorry, three months ago.
Speaker 5 (06:42):
You're done.
Speaker 6 (06:43):
Yeah, so six monthly definitely, But there's obviously other reasons
as to why you would look into that as well,
So not just that.
Speaker 5 (06:50):
Obviously the rbas reduce their rates.
Speaker 6 (06:53):
Want to make sure that we're getting the best interest
rate possible if there's been any changes to your circumstances,
So you know, if your house has gone up, or
you know, the naghbor down the road has just sold
their property and they've got a great outcome, and you
want to see what you're true and correct. Like LVR
so loan to value ratio looks like that can have
an impact on your rate as well, So it's definitely
worth checking.
Speaker 4 (07:12):
Yeah, one hundred percent, And I think that you know
you gave the advice call up your broker, but like
it's quite They don't want to say it's funny, but
it's interesting because some brokers do require that prompting of oh,
hey can you review my loan and they go, oh, hey, Jacqueline,
haven't spoken to you in a while.
Speaker 1 (07:29):
Yeah, yeah, yeah, I'll pick it up and have a
look at it.
Speaker 4 (07:32):
Whereas like we and this is not mean like trying
to stroke around egos, but like good brokerage practices will
have a pricing team like we do, and their job
is actually every single day going through the thousands of
clients we have and repricing their mortgage. So, like our clients,
once you kind of get in, you get on the cycle,
and every six months we can basically guarantee that your
(07:53):
mortgage has been reviewed, and it gets reviewed. We've already
called the bank, we've negotiated the lower rate, and you'll
just get email of probably a call from Jack being like, hey,
just wanted to touch base. How are you We actually
dropped your rate this week? Bye, I have a nice day.
There's actually no admin from your behalf, which I think
is if you're going to use a broker and like Honestly,
(08:14):
if we're going to make money from you and your loan,
I think we should be working for that. I don't
think that we should just be taking it and being like, oh,
let's cruise along. I just there's something about that that
makes me feel uncomfortable to not put clients consistently in
the best possible position.
Speaker 5 (08:28):
Well, we exactly right. We're going to do the work
for you.
Speaker 6 (08:31):
So the second that you do settle, like you said,
our pricing team will dirize every six months to do
that work for you. So you don't have to dom
on the phone, you don't have to send that email.
It's just sort of set and forget and we'll do
it for you.
Speaker 4 (08:41):
Yeah, one hundred percent. So when should we be considering refinancing?
I feel like the biggest push is when people see, oh,
the cash rates dropped, But there are six million reasons
why you would refinance. Talk me through some of your
recent refinances. Why are they refinancing?
Speaker 1 (08:57):
Jack?
Speaker 5 (08:58):
Oh?
Speaker 6 (08:58):
Like you said, there is so many reasons as to
why you would. It could be as simple as changing
your loan products. So if you're going from a fix
to a variable or vice versa, if you're needing to
access any equity, so you might be looking at consolidating
any loans or just cashing out some money for renovations
or whatever that looks like. Same with like I said,
(09:18):
if the house price has gone up, or if you've
made a lump some payment to your home loan and
it's changing that LVR. A lot of the banks now
are doing tiered interest rates, So if you're sitting between
that seventy to eighty percent mark, you might get one
rate you're sitting between sixty to seventy. So it's always
worth staying on top of. But there is so many
different reasons. It could even be just that you want
to change the loan term. So what I mean by
(09:41):
that is you might have a twenty loan term on
your current home loan, you're looking up forraing a little
bit more of cash flow. You might want to look
at extending that just while the interest rates are a
little bit higher, and then looking at bringing that back down,
you know, after they sort of drop a bit more.
Speaker 1 (09:54):
Yeah, one hundred percent.
Speaker 4 (09:55):
And like financial advice, I think gets confused a lot
of the time with mortgage brokers. I have this conversation
in my DMS on i'd say a weekly basis. People
will be like, oh my gosh, do I need to
see a financial advisor because I want to talk about
whether I should sell my property or rent it out.
And to me, that's not a financial advice question, because yes,
a financial advisor could sit you down and be like, okay, cool, Jacqueline,
(10:18):
You'd be in the best possible position.
Speaker 1 (10:19):
If you xyzed.
Speaker 4 (10:21):
But like a broker is going to be able to
model all of those scenarios for you and go, okay, Jack,
if you sold, it would look like this, and this
is what we would expect that property to sell for.
And also, this is how much equity you've got. This
is how much cash would probably come into your bank account,
and you'd be able to play with that.
Speaker 1 (10:37):
Okay, if we rented.
Speaker 4 (10:39):
It out, this is what we could do with it,
Like this is how much equity you've got to leverage
into another property, and like we're part of that decision
making team, Like, no, technically we can't tell you what to.
Speaker 1 (10:49):
Do, but we're just laying all the scenarios out and
be like, oh, would you look at that.
Speaker 4 (10:54):
That one looks like it comes comes out ahead, doesn't it.
And the client's often like oh my god, I would
never want to xyz if I could do this. And
so I think it's we're not leading you down the
garden path, but we're giving you every single stepping stove everything.
Pave your own path and work out what's going on.
And I mean you could go, oh, well, Jack, what
if I bought for six fifty? Oh, actually, what if
(11:15):
it was seven hundred. We can like model out all
of those different options. And I think that when you're refinancing,
going well, what's that even look like? Like you've called
your bank, you've got the lowest interest rate, but you
know it's not the lowest interest rate on the market.
Maybe you're going, well, what does it look like we've
owned this house for five years. Let's have a look
at what equity you've got. Because I think a lot
of the time people are surprised, if there've been homeowners
(11:39):
for a little while, at how possible and how easy
it might be to get into their next property, whether
that is you know, a bigger family home or an
investment property or whatever that looks like. Often we sit
down and go, did you realize you probably have like
one hundred and fifty thousand dollars of equity and they're like,
but I don't have that in my offset account.
Speaker 1 (11:57):
No, you don't.
Speaker 4 (11:58):
But the house is worth more than the mortgage that
you owe, and so we could actually use some of
that equity to buy an investment property and you don't
have to come up with any cash. So that's a
very popular reason we see in our community. I would
say as to why people are trying to like refinance,
because obviously that requires a different loan structure.
Speaker 6 (12:18):
Exactly, a lot of time people will put as much
money into the home loan to reduce that loan. So
instead of I guess having your savings sitting on the side,
you've got it in your home loan working for you.
So when the time comes that you want to look
at purchasing that next property, we are able to access
the equity and the extra funds that you've put into
that home loan and draw it back out for your
deposit for the next property.
Speaker 1 (12:38):
Yeah, exactly.
Speaker 4 (12:39):
And I think that a lot of people assume, oh, no,
that must be financial adviceor broker couldn't tell me if
I could, we can model it out. We can sit
you down and go, okay, cool, this is what that
would look like. This is what it would look like
if you did it over here over there. And I
think that that's the cool thing about it. It's free
as opposed to going and seeing a financial advisor who
would go, oh, so you you want to buy an
(13:00):
investment property and they will do your whole financial plan.
Speaker 1 (13:03):
That's cool.
Speaker 4 (13:04):
But like the question that you wanted answered was can
I afford it exactly? And I can work that out
for you with one of my brokers very quickly and
it won't cost you anything.
Speaker 1 (13:13):
So what are some.
Speaker 4 (13:15):
Signs that And I think this is a really important one,
and people don't realize that, what are some signs that
your mortgage maybe isn't working for you anymore? Like you
set it up, you thought you did absolutely everything. You
dotted all your eyes, you crossed all your t's, and
now maybe it's not working for you anymore.
Speaker 6 (13:30):
Well, I think, I mean, offsets aren't new, but they're
still quite relatively new. I guess in the lending world,
if you don't have an offset, or you haven't entertain
what that looks like, that might be something that you
need to consider, especially having your salary paid into an account,
or whether it's with the same bank or not with
the same bank, just having a look at the different
(13:50):
features that might be more beneficial to you.
Speaker 5 (13:53):
I guess yeah.
Speaker 4 (13:54):
I think a lot of people also, like if you're
in a bit of a pinch and you're like, oh,
I'm really feeling these mortgage repayments every single month, like
you don't have to kind of suffer in silence. You
can talk to a mortgage broker and go, okay, cool,
well what could we do. How could we refinance this
so that we're more financially comfortable today, but we still
have a plan to pay it off before retirement exactly.
(14:16):
And I think that that's an important factor as well,
because sometimes you might be worried about refinancing because you're like,
I don't want to start a brand new thirty year term,
Like I don't need a new loan to restart.
Speaker 1 (14:28):
I just I don't think that's a good idea.
Speaker 6 (14:29):
But that's probably the top one that comes through, is
that the refinancing. They assume that if you refinance, you
have to push it back out to thirty years, So
what do you do so in terms of when you're
looking at refinancing, we don't have to stretch it back
out of thirty years, But in some cases you might
look to do that just purely because trying to free
have a bit of cash flow at the moment. A
lot of the time clients will keep it at thirty
(14:52):
years so that they're contracted to thirty years and it's
the bare minimum payments. But then when they settle, they'll
jump online they can change it back down to, say
to twenty years. So I can tell you exactly what
that needs to look like and what you need to
change it to too, paid off in twenty years time.
But the beauty of it is, if you're contract to
the bare minimum, at least you know that if something
happens with work or you want to go on yeah travel,
sit back, you can just drop it down for that
(15:14):
month or however long you want, back to the bare minimum,
and it's in control with you, like you don't have
to contact.
Speaker 4 (15:19):
You're not going to get in trouble with that, like
you are just yeah, killing it yourself.
Speaker 6 (15:23):
Yeah, I love So then you might come back, you know,
after you've traveled for six months and say, right, you
know I've got a promotion or I've got you know,
more savings than I thought, I can make bigger repayments. Now,
if I wanted to chop off, say another five years,
what do my repayments need to look like?
Speaker 4 (15:36):
Now?
Speaker 1 (15:36):
Yeah?
Speaker 4 (15:36):
Yeah, And do you know what, Jack, you don't know
if there's but at the time that this episode is dropping,
I have a free mortgage repayment calculator dropping on our
website as well, So we'll put the link to that
in our show notes as well.
Speaker 1 (15:49):
But I think that that.
Speaker 4 (15:50):
Will be like a really helpful tool because it's a
really basic spreadsheet that I've built that is, like you
put your mortgage amount in, you put your interest rate
amount in, and then you can play around with the
repayments and see the time frame that it would take
to pay that off. Because there's obviously a lot of
maths that goes into the back of that that's not
just like one plus one equals too, like your interest
(16:11):
rate is kind of like it's compounds, like compound interest
on an investment would, So there's a lot of like
you end up paying a lot more of the mortgage
off in the later periods of your life and a
lot more interest at the start. So anyway, I will
have that in the show notes for you to download
for free, so that you can kind of play around
with that or just even see, well, what would it
look like if I could refinance and drop my rate
(16:32):
by you know, zero point two five percent? Like does
that actually put me in a better position? How much
of a good position? Because it's very handy to know
and feel like you're in control.
Speaker 6 (16:42):
And you might be in a position where with the
rate cuts, you know the point if I've I mean,
obviously everyone's a static about this and that means more
money in it.
Speaker 4 (16:49):
But we're so excited, like we are happened yesterday for us,
So like when you guys hear this, like just remember
having yesterday.
Speaker 1 (16:56):
We're going out for lunch today, Like we are excited.
Speaker 6 (17:01):
You know, you might be in a position where you
can keep that month your payment as is now and we're.
Speaker 1 (17:06):
Paying the same amount.
Speaker 5 (17:07):
Yes, some people.
Speaker 6 (17:08):
Want that money back in their back pocket, you know,
free up cash flow.
Speaker 1 (17:11):
I get it.
Speaker 6 (17:12):
Some people might be in a position where they can
keep it. Therefore they're going to end up paying off
their mortgage quicker.
Speaker 4 (17:17):
Yeah, Like a good example there, Jack, if you're paying
like let's say two thousand dollars a month to your
mortgage and you're like, but I'm comfortable with that, why
would I refinance? Well, if we refinance, you're going to
continue paying that two thousand dollars a month, and that
you're fantastic a lot less, you're paying a lot less interest,
and that mortgage is going to be gone sooner. Yes,
so yes, you might be in a quote same position
(17:39):
day to day, but long term, you're putting yourself in
the best possible position. So what would you say to people?
And I've heard this a million times and I'm sure
you have to who say, Look, refinancing is too much effort,
can't be bothered.
Speaker 6 (17:51):
I can see why people would think that. I mean,
it's definitely not as.
Speaker 4 (17:56):
Now we're saving money jack, like we are saving like
we save.
Speaker 1 (17:59):
Clients more my years of dollars, Like over the life
of your loan.
Speaker 4 (18:03):
I can almost guarantee that refinancing down point two five percent.
It's not like fifty one hundred dollars, it's tens of
thousands of dollars over that you're saving life. Yeah, we're
not talking like oh yeah, why bother Like a pair
of shoes, it's not a pair of shoe.
Speaker 1 (18:18):
It's a whole last caravan. You want the.
Speaker 4 (18:21):
Shoe store back yeah, so it's interesting how people go.
Oh but week to week it does an impact, Yes,
it does long.
Speaker 6 (18:27):
Term, I know, I see why people would think it's
in the too hard basket.
Speaker 5 (18:32):
The aim is to make it as painless as possible,
Like we don't.
Speaker 1 (18:36):
Want these to be a paople. I want you to
love us, not by us.
Speaker 6 (18:40):
Yeah, I mean yes, it is like a normal application
if you would say, go purchasing property. We do need
your income documents, we do need to see bank statements,
But like I said, we'll make it as painless as
possible and.
Speaker 5 (18:52):
As quick as possible for you.
Speaker 6 (18:54):
If you are trying to say, match this up with
like the refinance with say an fixed period date, just
let us know so we can try and you work
with you and try and match up those dates.
Speaker 5 (19:04):
But if we're not aware of that you're trying to
match it up, you know it might.
Speaker 4 (19:07):
We just give us as much information as possible, Like
the more info the better. Like it's such a I
said this about financial advice, and the same is for
mortgage broking, Like it's such a privileged position to be
in to like know how you feel about your life
and your goals and what you want to achieve, but
also like financially what you're doing, Like, we are so
lucky to be so trusted, but like you do need
(19:29):
to find a broker that you trust. You can't just
use anybody who you go, oh, my friend, use this guy.
He seems a bit weird, but it's fine. Like I
want you to be so confident that you're like no, no, no, oh,
so Jack, we were actually thinking what would our mortgage
your payments look like, Like what if we planned on having
a baby next year? Yeah, because that does impact your serviceability,
(19:49):
like a dependent joining their family.
Speaker 1 (19:52):
Is going to drop your borrowing?
Speaker 4 (19:54):
What actually, yes, and so we might go right well
in that case, we're not going to tell you where
to get pregnant, but like maybe let's try buy sooner
rather than later so we can lock in a good
rate and then we can talk about a baby a
little bit late, Like we can.
Speaker 1 (20:08):
Have those conversations.
Speaker 4 (20:09):
And if you're not trusting somebody with you know, being
able to have candid, nice conversations like that, like maybe
they're not the right fit, because like we want to
work as hard as possible to achieve your goals. Like
when you win, we win. And I think that that's
a really important reminder, Like if you don't feel comfy
being like, oh hey Jerry, Yeah, so what would my
(20:30):
borrowing capacity be if I had another baby?
Speaker 1 (20:32):
Like, yeah, I don't want.
Speaker 4 (20:33):
To talk to Jerry about my baby place. But Jack,
I'm a cool Jack, Like, it's not just about us.
It's more like, find someone that you just really gel with.
Because from my perspective, sometimes people see the relationship you
have with the mortgage brokers transactional. Yeah, but it's not
like if you find a good mortgage broker, they are
on your team for the life of your loan.
Speaker 1 (20:56):
That's like thirty years of us checking in.
Speaker 4 (20:59):
Always make sure you've got the best rate, talking to
you about, you know, potential investment opportunities. Okay, cool Jack,
you've got like enough for a deposit? Did you want
to leverage that? What does that look like? Are you comfortable?
Like we want you to be in the best possible
position ever, I.
Speaker 5 (21:13):
Really like you comment around. You know, when you win,
we win. It really does feel like that we're.
Speaker 1 (21:18):
Going out for lunch guy, because your interest rate dropped.
Speaker 6 (21:22):
I mean, who wants to be paying any more money
in interest if you don't have to one hundred Like
I just we're on cheese on the money, Like, I'm
not here to waste my money.
Speaker 1 (21:31):
No, I didn't say I always spend it in.
Speaker 4 (21:33):
Line with other people's values, but like, I want to
be able to be in the best possible financial position. Now,
I think a lot of people are listening and they're like, look,
maybe refinancing is worth it, but how do you actually
do it?
Speaker 1 (21:45):
Is the question?
Speaker 4 (21:46):
So up next we're going to talk about the features
that actually matter, the fees that you need to watch
out for, and how to spot a deal that's actually
worth switching for.
Speaker 1 (21:53):
So guys don't go anywhere.
Speaker 4 (21:59):
All right, So we're back, and I'm very excited about
this because we've covered when refinancing makes sense and why
it can feel a little bit overwhelming. But what happens
when someone actually does it? Like, if we're going to
go and do the whole refinancing thing, can you just,
I guess, maybe share a client win that you've had recently,
someone who thought maybe it was too hard but ended
(22:19):
up saving a whole heap of money.
Speaker 1 (22:21):
You're like, yep, everybody there, because otherwise it wasn't refinance.
Speaker 4 (22:26):
We also, I guess if you come to a mortgage broker, right,
and I know it's not worth three fun.
Speaker 5 (22:31):
You will tell you.
Speaker 4 (22:33):
We're not going to like, Babe, we don't want you
to do the admin and go through hoops to then
think that we didn't do anything.
Speaker 6 (22:38):
No, it did to be beneficial for you to do
it to make the move.
Speaker 5 (22:43):
We're gonna like lay it all out there.
Speaker 6 (22:45):
We're going to compare it all, including like the discharge
fees and the new like signing up fees and things
like that, and if it doesn't make sense, we will
tell you stay put, let's chat soon.
Speaker 1 (22:55):
Yeah, Like just sit pretty.
Speaker 4 (22:56):
You've actually got a pretty good deal and that's a
good position to be in as well, because and you
know that you're in the best possible position currently.
Speaker 1 (23:02):
But at least you're checking right, Yeah, exactly.
Speaker 4 (23:05):
So for anyone who's I guess never gone through this before,
because I think a lot of our community they've just
bought their first homes in the last few years and
maybe they've never refinanced. What does the refinance process actually involve?
So like, let's say I want you to do it
for me, Jack, I pick up the phone and go, hey, Jack,
you are now my official broker.
Speaker 1 (23:22):
What do I do?
Speaker 6 (23:24):
So I guess from here we would compare obviously rates
number one, looking at you know, getting a lower rate,
so less monthly repayments, things like that. We're going to
look at the discharge fees, Like I said, what that
looks like the land titles office fees to discharge the
mortgage from the loan.
Speaker 4 (23:42):
That's a lot of fees. I don't think a lot
of people thought about.
Speaker 6 (23:45):
No, but we will lay it all out on table
for you, so we will compare it all. We'll send
you an email. It's all you know, their fee to
visually see it. So we're talking. You know what your
rate is, what your payment is, what your startup fees
look like.
Speaker 5 (23:58):
You discharge fees any of you and your fees with
the new bank. You may or may not have had one.
Do you have one now?
Speaker 6 (24:05):
So we've got to weigh it all up and make
sure it's still beneficial when taking everything into account.
Speaker 4 (24:10):
Yeah, absolutely, so talk to me about Obviously I'm.
Speaker 1 (24:13):
Very pro broker.
Speaker 4 (24:14):
I own a brogage broker is kind of like I
own a mortgage breaking business. Obviously am pro broker, but
like I adore the idea of a broker for a
number of reasons. But like Jack, why wouldn't someone just
go directly to a bank instead of, you know, talking
to a.
Speaker 1 (24:28):
Broker, Because that's a very valid question.
Speaker 5 (24:31):
Yes it is. I don't I want to say.
Speaker 4 (24:35):
Jacquelines or in PC in the nicest possible way. She's
very complimentary of everybody in the industry, honestly, sometimes to
her detriment.
Speaker 1 (24:42):
But I think it's.
Speaker 4 (24:44):
Look, I used to work for a bank, so but
you did it, really you did a different role. But
I think it's interesting because like if you go to
the bank, it's kind of like going down to Let's say,
you want to like go buy a packet of chips, right,
So you walk into Smith's, the Smith's factory, and you say,
what chips.
Speaker 5 (25:03):
Have you got?
Speaker 1 (25:04):
Yeah, and they're gonna.
Speaker 4 (25:05):
Show you all of the chips that they have in
their particular range. They're going to go, oh, we've got
these crinkle cut lines, they're really popular. We've got this, this,
and this, and you go, okay, cool, Like that's all
the chip ranges. I'm going to pick from that, and
you've got maybe like five options, right.
Speaker 5 (25:19):
I'm going to say two or three?
Speaker 4 (25:21):
Yeah, Okay, Well, I don't know I don't actually buy
chips that often. I just thought it was a good example.
But then you go, all right, well, maybe I'll just
go down to Coals or Woolies. And that's like you're broker.
Speaker 1 (25:31):
You go in. There's a whole damn aisle. There's every opportunity.
Speaker 4 (25:34):
There's a Red Rock Deli, you've got the gluten free options,
you've got you know, Thins, You've got Lays, You've got
Smith's is there too, Yeah, but you now have so
many more options, so many more price points, so many
more flavors and benefits. That's I guess the difference. So yes,
you absolutely could go direct. If you're like, I don't care,
I only want a bank with nab ever Victoria, that's great.
(25:58):
You could be paying loyalty tax because you're not getting
the best possible deal. You're not getting the best possible structure.
Like we write now loans all the time. So don't
think that RV doesn't like that. It's just an example
because like for some clients that works perfectly, but other
clients were like, oh my goodness, have you heard of Macquarie?
Like this particular platform is going to give you unlimited
offset accounts and this might make the most sense for you.
(26:19):
So I think it's all about options and it is
free to go to safe ways and look at all
the options.
Speaker 1 (26:26):
Like they're not paying an entry fee.
Speaker 4 (26:28):
It's not like going and seeing a financial advisor where
you have to pay thousands of dollars. We are very
lucky in that we get paid by the banks, but
only if your loan settles, only if it works. So
that is to me really important because some people would go, oh,
that feels a bit weird, but like, at the end
of the day, you're not being charged more as a consumer.
(26:50):
The bank is sharing their profit with us as kind
of like a finder's fee. They're going, thanks Jack, we
wouldn't have had that client without you, so we're going
to split our profit with you. The client is always
going to be in the best possible position. And because
of Australian law and regulation, not only do we have
to make sure you're in the best possible position, we
have to give you three options every single time. You're
(27:12):
not just getting one. You will always get given here
are the top three options for you personally. So I
think that that's not what would happen if you went
to a mortgage broker who works directly for a bank
or went to a bank directly. And it's not about
like they're good brokers, like they are intelligent, they are smart,
they just don't have.
Speaker 1 (27:33):
Access to the wide range exactly.
Speaker 4 (27:36):
And so just seeing a mortgage broker, you go, but
I have a broker, Well, who were they employed by?
If they're employed by a bank. To me, I would go, well,
maybe you're not getting as many options put on the
table as possible. They could be the best person in
the entire world. I mean, you heard before Jacqueline used
to work for a bank, but when you did, you
would have had a limited range of opportunity.
Speaker 6 (27:55):
Pretty much looking at variable or fix really exactly. They
will give you, obviously the best product that they can offer,
I'm sure of it. But like you said, if you
go into a broker, we've got I mean sometimes you've
got sixty different lenders on your panel, so there's sixty
different dictions that we can, yeah, put in the mix
and show you exactly.
Speaker 4 (28:16):
And I think that that's really important to take into
consideration as well. So Jack, beyond chasing a lawer rate,
what loan features should we actually be looking for to
make sure that refinancing actually improves our financial situation. Like
I feel like so many times people just really get
stuck on the numbers.
Speaker 1 (28:32):
And they're like, I just want to lawer rate, I
just want to lower rate. What else are we looking for? Fees?
Speaker 6 (28:37):
I guess, and your fees accounts offsetting fees. Some banks
will have it set per month or per year to
take into account if you're paying any of those fees.
Number one, do you have an offset? Is it going
to be worth you introducing an off set? Do you
have separate banking at different banks? Is it worth looking
at putting it maybe with the one bank, and then
(28:59):
that way we can put your savings into one of
the offsets, or your holiday fund or your spending funds.
Because all of that money that is in an offset
is working for you. So you know, you're paying less
in interest on your mortgage every single it's calculate daily actually.
Speaker 4 (29:13):
So it's so I guess on that as well. Your
mortgage broker can and should, from my perspective, be helping
you with cash flow. So they should be sitting down
and going, all right, so this is how we're going
to budget. This is what this looks like. This money
goes into this. It's one of our favorite parts of
our job. Like, once you've got your loan, being able
to go okay, cool, We're going to put you in
the best possible position by doing ABC and D. Got
(29:36):
any questions, call me right because I'll know, and it's
just so fun. We obviously have lots of different fees
and that can be really overwhelming.
Speaker 1 (29:45):
But the flip side.
Speaker 4 (29:46):
Is cash back offers, Like I feel like they're probably
going to make a resurgent soon because of the dropping
cash rate, and obviously lots of people have their eyes
on lots of different opportunities. So you might see some
of the big banks going refinance with us and we'll
give you three thousand dollars cash or two thousand dollar.
When you see it all the time, it would be.
Speaker 6 (30:06):
I mean every single bank. I felt like I was
playing part in that. Probably two or three years ago, it.
Speaker 4 (30:11):
Was everywhere in COVID, everybody was doing a cash back off. Yeah,
and brokers can access that for you too. You don't
have to go direct to that bank, like you call
your broker first.
Speaker 5 (30:21):
Yeah.
Speaker 6 (30:21):
Now it has sort of dropped. There is only probably
limited banks that are offering it. You got to wait
it up like sometimes I do think it probably is
a shiny distraction. I think it's easy if you don't
have a broker who's obviously, you know, going to like
I said, laid all out on the table for you
to show you every little single fee and charge and
(30:42):
take everything into account. I think if you're doing it
direct to bank, it's easy to go, well, you know
they're going to offer me two thousand dollars or three
thousand dollars.
Speaker 5 (30:49):
Why wouldn't I.
Speaker 4 (30:50):
Yeah, money win, Yeah, but long term it might cost
you more than I do find sometimes the interest rate
is probably slightly higher than.
Speaker 5 (30:58):
What you could get. But I mean not to take
it out.
Speaker 6 (31:01):
You just got to wigh up where that pinpoint is
in your loan term, Like you know, after one year,
is it now that we're at that break point where
it's no longer working, and do we need to look
at now either refinancing yet again to get a lower
interest rate or you know, sometimes people will just slip
into the comfort of just staying with them again, and
that's probably how what.
Speaker 4 (31:19):
They're doing exactly probably got you in the door with
the shiny thing, and then you stayed because it was warm.
Speaker 3 (31:24):
Here.
Speaker 4 (31:25):
I think that's interesting as well, because yeah, so many
times we think that's a good deal. But like instant
gratification versus delayed gratification.
Speaker 5 (31:33):
Sometimes forget like most of the time your loan is
over a thirty loan.
Speaker 4 (31:37):
Term, yeah, and three grand over the long term, maybe
you're paying ten thousand dollars more.
Speaker 1 (31:41):
Maybe not.
Speaker 6 (31:42):
I'm sure that that three thousand dollars is probably not
sitting in your offset, you know, working for you.
Speaker 5 (31:47):
I'm sure that's already been spent.
Speaker 1 (31:48):
And oh yeah that in my head, that's free money. Yeah,
that's not my saving that last free money.
Speaker 5 (31:54):
Yeah, going on a holiday with it.
Speaker 1 (31:55):
Yeah, yeah, money. We so talk to me about.
Speaker 4 (31:59):
Obviously, we want to be shopping for a better rate
because it is important to get the best deal possible.
But how does that impact my credit score?
Speaker 5 (32:05):
I mean, if you're just looking like window.
Speaker 1 (32:08):
Shopping, little yeah we window shopping, Okay, window.
Speaker 6 (32:10):
Shopping, it's not going to obviously impact your credit score.
So if we're just you know, seeing what's out there,
reaching out to a mortgage broker to see what options
there are.
Speaker 5 (32:19):
Then your credit file is not being touched whatsoever.
Speaker 6 (32:22):
If we're actually committing to it, and actually going ahead
with the refinance.
Speaker 5 (32:27):
Then obviously, yes, it is going to have a hit
on your credit file.
Speaker 6 (32:31):
That's not necessarily going to have a negative effect. However,
multiple times in a short period of time.
Speaker 1 (32:38):
Yes, this.
Speaker 4 (32:39):
Don't go talk to lots of brokers and submit lots
of inquiries and do all of that, because I don't
know how to say this, but you are disadvantaging all
of the brokers if you are shopping around. I'm not
saying don't have an initial chat with them, and if
they're not the broker for you, go find somebody else.
But don't go down the garden path. Don't like, submit
(33:00):
a credit inquiry with a broker just to.
Speaker 1 (33:03):
See what options they can put on the table for you.
Speaker 5 (33:05):
They don't need to be doing.
Speaker 4 (33:07):
Yeah no, because all good brokers, honestly should be able
to analyze your situation in exactly the same way as
the next broker down the road and get the same outcome.
And if they're not, I'm actually a little bit concerned.
The important cherry on top there is like the relationship
you have with them the above and beyond, what additional
things does that business offer you in terms of support
(33:28):
and ongoing client relationship and like whatever that looks like.
And I think that that's really important to consider as well,
because it's just it's so important that we're not just
making multiple inquiries on our credit score just to see
because that can drop your credit score and therefore make
it harder to get a better deal exactly.
Speaker 6 (33:48):
Because when you a credit I think we've spoken about
that previously, but credit scores can have an impact on
which lenders will and won't take you. So therefore, instead
of having you know, the door open to say, like
a had sixty different lenders, you might only be able
to now look at three options. Yeah, so it is
hindering where you can go and what you can get.
Speaker 4 (34:07):
Yeah, and a broker we'll be able to guide you
on that too, because like if you've got terrible credit
or something, you can still have a chat and be like, well,
what can I do Jack to either increase my credit score?
Or like can I ever move while they have a
bad credit score? And can you move? Like if my
credit score is not amazing, Jack, don't have to wait?
Speaker 1 (34:23):
What can I do?
Speaker 6 (34:24):
We need to obviously have a look at it, see
what it is, see what the actual background is, and
what we can do, but there's certainly options. We've definitely
had clients that have come to us that we've been
able to move from a much lower rate that thought
that their credit score wasn't too It.
Speaker 4 (34:37):
Wasn't amazing incredible, but like once we have a couple
of conversations with the bdms and the banks, they're like,
oh that makes sense. No, we'd be willing to accept
them all good. That's where the relationship part comes into it.
A lot of the time, Jack, this has been incredible,
but unfortunately it is all we have time for today.
Thank you so much for jumping back on the show. Genuinely,
(34:57):
I feel like I was like not pulling teeth, but
I'll it's.
Speaker 1 (35:00):
Like, so could you do this week? What about next week?
Speaker 4 (35:02):
Can you come on the show and talk about refinancing,
because like, I'm getting a lot of questions about refinancing.
I feel like you always explain stuff in a really
clear and really practical way that just makes sense, and
I know that people are going to find this really helpful, so.
Speaker 1 (35:14):
I appreciate it.
Speaker 4 (35:16):
Oh thanks, no, of course, And guys, it doesn't need
to be a massive process, and getting the right support
can make it a whole lot easier, even if you're
just checking if your rate is going to drop. Is
a great first step, and of course, if you've got
questions or you want to help figuring out if it
is the right.
Speaker 1 (35:31):
Move for you.
Speaker 4 (35:32):
The team at Zela Money we literally always here. I'll
put our contact details in the show notes because if
I can't shamelessly promote my own business on my own show,
why are we here? And as always, if you enjoyed
this episode, make sure that you're following the show, hit
subscribe and leave us a review and share it with
someone who you think might need a little refinancing nudge.
We'll see you again on Friday. Bye, guys, Bye. The
(36:01):
advice shared on She's on the Money is general in
nature and does not consider.
Speaker 1 (36:05):
Your individual circumstances.
Speaker 4 (36:07):
She's on the Money exists purely for educational purposes and
should not be relied upon to make an investment or
financial decision. If you do choose to buy a financial product, read.
Speaker 7 (36:17):
The PDS TMD and obtain appropriate financial.
Speaker 1 (36:19):
Advice tailored towards your needs.
Speaker 7 (36:22):
Victoria Divine and She's on the Money are authorized representatives
of Money sheper Pty Ltd ABN three two one six
four nine two seven seven zero eight AFSL four five
one two eight nine
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