October 27, 2025 • 40 mins
Most prospective buyers know how much they can borrow, but how much should you borrow?
Banks will often be happy to lend buyers an eye-watering amount of money, right at the top of what they can afford, but that doesn't mean buyers will be happy once those repayments kick in.
Not mention five years down the line, when interest rates aren't as low as they once were, and wages aren't increasing at the same rate.
So how can people actually work out their own borrowing limit - one that allows for the odd night out or weekend away?
LISTEN ABOVE
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks
be you know, yes.
Speaker 2 (00:33):
Welcome back or welcome on to the Weekend Collective. Now
this is the bit where we want your calls and
your participation on eight hundred eighty ten eighty. We want
we invite whatever word you want to use. Eight hundred
eighty ten eighty text nine nine two. And just before
we get into this hour, looking ahead till l after
five for the Parents Squad, we're going to be having
a chat with Catherine Burkett about whether you should in fact,
(00:56):
whether you should in fact stay together for the sake
of your kids, or you can put it the other way,
should you split up for the safety your kids? Because
we already had just in mentioning this before we went
on air in the newsroom at a few hot takes
on that as well, so we do talking about that
after five for the Parents Squad. But right now this
is the one roof radio show. And as I say,
(01:18):
we want your calls on eighte hundred and eighty ten
eighty and text on nine to two nine two. Now
what we're going to talk about is, firstly is this
goes back to when I first inquired about getting a
mortgage when we bought our place and the bank told
me how much I could borrow, which made me well.
I wouldn't say I would pass out or anything, but
(01:39):
it made me my eyes widen, thinking, good lord, I
can't imagine having a mortgage that bag. And banks. Look,
banks are careful as well. They don't want to lend
you amount of money they don't think you can pay for.
But it does seem from at least a few stories
I've heard in my own experience that banks can be
happy to lend you what might be an eye watering
amount of money, But does that mean you'll be happy
(02:03):
once the repayments kick out years down the line, when
interest rates maybe change a bit. So how much do
you need to have a really strong handle on what
you're comfortable with versus this is what the banks will
end us. Let's do it anyway. We have a new
guest on the show to talk about that. He's managing
director at Opis Mortgages. That's the name of a company.
(02:23):
It might sound familiar give him. That's where Ed mc
knight comes from. And he's his name is Peter Norris
and he's with me.
Speaker 3 (02:29):
Now, good Peter, how are you going, Yeah, good, good,
thanks for having me.
Speaker 2 (02:32):
Hey, since you knew, what's your what's your background and
into leading into what you do now?
Speaker 3 (02:39):
Yeah, Like I said, I'm managing director at Opes Mortgages,
so Ed McKnight's business partner. My background is I've been
a mortgage advisor now for Oh it feels like eternality
coming up. Fourteen odd years. Prior to that, I was
at B and Z for five years, just started fresh
out of high school. Actually I jumped in out of
high school and into the bank in the middle of
(03:00):
the GFC. I didn't even know what a GFC was,
and here I was lending money at eighteen years old,
never never owned a house, and but the bank's banks
bring in It was actually a great, great stopping ground
for me. Learned a lot did that for five years
and they jumped out of there.
Speaker 2 (03:13):
And what was the first impression you got when you're
doing that?
Speaker 3 (03:16):
Oh, do you know what I You go into the
bank at eighteen years old, you get an oversized suit,
you get given a wardrobe allowance, and and nothing really
really fits because you're fresh out of school. But yeah,
first impression was that was that was enjoyable. I really
loved it. It wasn't what I saw myself doing.
Speaker 2 (03:38):
What led you? What led you to get a job
there in the first place?
Speaker 3 (03:40):
Then, yeah, a good question. Like I said, it wasn't
at all what I had envisaged me doing. I grew
up playing football. I always wanted to be a football player,
and that's that's sort of where I wanted to go.
But during high school holidays, I did some casual work
at the bank and realized that you can earn pretty.
Speaker 2 (03:58):
Well yeah, and thought I want to earn some money.
Speaker 3 (04:03):
Yeah, And so I got used to doing in that
in the school holidays, and then started off at university
fresh out of high school after the school holidays working
at the bank and earning good money, and then went
to earning nothing and was like, I'm not about that.
I'll go back to earning some money. So I came
that idea and went to the bank.
Speaker 2 (04:20):
How long did it? How long did it take you
in your journey where you were you really felt that
you knew something, because you know, obviously you go from
It's like I mean, when I started practicing law back
in the day. You know, you get out of law school,
the four year degree, and you realize when it comes
to practicing law, you know next to nothing, and then
you gradually your conference builds over time. When was it
for you that you sort of felt you had something
(04:41):
genuinely like, oh sure I know what to do here?
Speaker 3 (04:44):
Yeah, well, it depends on I mean, there's still some
days now where where there's some new stuff to be learned.
But back then I kind of took the Richard Branson
approach of say, yes, figure it out later, or it
to you make it kind of approaching. I mean I
was I was nineteen and branch manager in Milford Being's
(05:05):
and it was you know, you look back and go,
what was that probably says more about the bank than
it does about me.
Speaker 2 (05:11):
Well, that tells me you must have been a relatively
quick learner.
Speaker 3 (05:15):
Yeah. The bank's really good at progressing the good ones through.
So if you've had bank managers in the past, you'll
know that they're any good. They often move on quite quickly,
and so the bank really does progress you. And if
you are half decent, will we'll promote you and move
you into that next role and put you short to
throw you in the deep end with lending or with
business lending or whatever it happens. To be Yeah, and
(05:36):
I just I was someone that really wanted to give
everything a crack. So I ended up as a branch manager,
ended up as as business manager, never owned a business,
which again potentially says a bit more for the for
about the bank than it is about me. But what
it does also demonstrators where having a professional mortgage advisor
or financial advisor is really important.
Speaker 2 (05:55):
As well, because there was a time when having a
mortgage mortgage advisor or a broker or something was didn't
seem that common. Whereas I mean, I've been doing this
property show for a little bit now and it almost
feels like it's the big One of the dumber things
you can do is not get one. Are people turning
(06:15):
to mortgage brokers and advised as much more as a
percentage of the population than they might have done twenty
thirty years ago.
Speaker 3 (06:21):
Oh significantly So the numbers over the last oh since
I've been doing it would have grown from twenty twenty
five percent and a little what you're talking about, it
wasn't really the dune thing. You would just go to
your local branch up to now would be closer to
seventy percent wow of clients would use an advisor now.
Speaker 2 (06:38):
Craky and so how did you get involved with the opia's.
Speaker 3 (06:41):
Chaps That sums it up.
Speaker 2 (06:45):
Copez Mortgages is owned by Opia's partners.
Speaker 3 (06:48):
Right out of the Open group. Yeah. Absolutely, So Opus
Mortgages we were. Opus was started twelve odd years ago
and it was built off really strong relationships with referral
sources such as mortgage advisors. So relied heavy on external
mortgage advisors to refer clients into my property. And so
(07:13):
I was one of those advisors. I was one of
the ones that was a preferred mortgage advisor for the guys.
And they reached a time where the business grew enough
that it wasn't so reliant on external referrals and actually
it was generating its own and where you go. So
where we go?
Speaker 2 (07:31):
We started the okay, well let's get onto that. Let's
get onto the first order business, which is the working out.
I mean, is this a common thing that people that
you have to deal with with clients with borrowers, is
that there is a certain amount that they can borrow.
But I mean I was shocked at how much the
bank thought I could pay. And I was probably a
little bit cynical about it as well, because well, of course,
(07:53):
so long as the bank feels it can get its
pound of flesh out of me. I'm not sure this
is a really dodgy thing. I'm going to say here.
Not dodgy, but I'm not sure how much they really
care about my long term prosperity or whatever. It's so
long as I can pay for that massive mortgage, which
the higher it is, and it's long as it's serviceable. Fine,
(08:16):
So how much of a difference is there between what
you should borrow versus what the bank will borrow?
Speaker 3 (08:21):
Yeah, I mean it's a relatively cynical view, so I'll
try and take a different difference attack to the banks
obviously are a business at the end of the day,
and we want them to be making money, so that's
probably an important point. They affordabilities runs in two different ways,
and I will always say this to clients when I'm
talking about what it is that they can afford. There's
(08:42):
what the bank says you can afford. And there's what
reality says you can afford. And that's your day to
day spending habits or what you're actually comfortable with. And
as long as what the bank says you can afford
is more than what you think you can afford, then
you'll be all right. It's the white times where you
think you can afford to borrow more, but the bank says, no,
you can't. That's where you're going to run into issues.
But well, I'll always have conversations with clients out well,
(09:05):
just because the bank says that you can borrow more
given times your income, doesn't mean that you should. Doesn't
mean that you're actually in the position where you're ready
to do that.
Speaker 2 (09:15):
Well, how often do people actually max out what the
banks will lend them? They say, the bank says, look,
you're good for a million, and they go, great, we're
gonna we've got a deposit of three hundred thousand. We're
going to spend one point three mil. I mean, some
people will be maxing out what they can borrow simply
to get in the market. Let's not you know, pussy
foot around with that. It's still it's expensive to buy
(09:36):
a house.
Speaker 3 (09:37):
Yeah, absolutely, you'd be surprised how often people do push
those limits as long as there's it depends on what
age and stage they are as well, but what their
runway is for work life or what their projected earnings are,
and whether or not. What looks to be tight now
may not be so tight in the future as they
continue to earn more. But borrowing capacity has increased a
(10:01):
lot as interest rates have fallen. The banks have what's
called a test which is where they apply a stress
test to what you can or whatever the today's interest
rates are. For example, right now, one year rates four
point four to nine, the test rate would be six
point seven to five, and they're testing that you're borrowing
against the higher rate in case rates go up.
Speaker 2 (10:21):
Now just on that wasn't the I mean, I was
ages ago advised by a friend you should always budget
to be able to ford eight percent. And the test
rate has varied from time to time, which makes because
it wasn't even higher, but just recently the test rate
was higher.
Speaker 3 (10:39):
Yeah, absolutely, so borrowing a year ago rates have fallen quickly,
and test rates have fallen from nine to six point
seven five, which is a and in some cases six
point yeah, six point five. In some cases six point seven.
Speaker 2 (10:55):
Five is about the middle round.
Speaker 3 (10:56):
And when was it nine eighteen months ago?
Speaker 2 (10:59):
You see? That is that's problematic because if eighteen months
ago it was nine percent, I mean, how do you
work out what your test rate should be, because how
does I would have thought that test rates should be
sort of worst case scenario, this is what you could
be up for. So how does it go from nine
(11:20):
to six points and five that's over two percent? Two
percent on well, on a million bucks is twenty twenty
thousand dollars. So what would you advise people's test rate
to be.
Speaker 3 (11:33):
I'm fairly comfortable with where they are today. What tends
to happen is isn'tights fall. Those test rates tend to
fall as well, and it really does push borrowing capacity up.
There is another measure that is restricting people's borrowing right now, though,
and that's debt to income ration. And that's that's an
important factor because with test rates coming down, we are
now seeing those debt to incomes really come come to play.
(11:56):
When they first got introduced, they did nothing because you
couldn't borrow that much. You were limited to four or
five times your income because of the test rate was
nine percent. Whereas now with the test rate at six
point seven five, you can really borrow sort of seven
and a half times your income.
Speaker 2 (12:09):
So when they do the debt to income ratio, that's
based on the test rate, not on the rate you've
got right, that you've got.
Speaker 3 (12:18):
Well, no, the det to income ratio is based on
your income, so you've.
Speaker 2 (12:21):
Got Sorry, sorry, I was my brain that had a moment.
Speaker 3 (12:25):
When you go and borrow money, you need to meet
two criteria. One is the serviceability and that's tested on
the test rate, and then the other one is the
debt to income. So if the test rate and all
the banks calculators say that you can borrow seven times
your income, but you're borrowing an owner occupied then you
will be restricted to six times your income, even though
(12:48):
the calculator says you can do more. So that dit
to income is acting as a control to make sure
that people don't over expose themselves to debt whilst intratrates
are coming down.
Speaker 2 (12:58):
So owner occupied you sat six times and for what
investors it seven times, But the stakes are still just
as high, aren't they? Or is it because you're an investor,
You've got another property and therefore the bank feels safer
pushing pushing it a bit more. There's more collateral, Yeah,
there's a bit of that to it.
Speaker 3 (13:16):
There's also the fact that you've got the rental income
as well, so you're not completely reliant on personal income,
so you've got the rental property. They apply shading to that.
So there's quite a few measures in there to protect
the borrower.
Speaker 2 (13:29):
So how do you go about advising clients on what
they should borrow versus what the bank says they borrow.
Will you generally go with what the bank says you
can borrow? Or do you also have a look at well,
you know, do you still want to go and see oasis? Well,
I mean, these are the things and when you see
where people squander money, the big what was it people
banging on about I can't have avocado on toast. I'm
(13:51):
not sure.
Speaker 3 (13:51):
There's a whole bunch going on around. So the banks said, no,
what was that? I spent some money at kmart, so
the bank said not to my borrowing because I spent
too much.
Speaker 2 (14:02):
Yeah that was.
Speaker 3 (14:05):
A couple of years back.
Speaker 2 (14:06):
So I mean, what do you give clients advice separate
to what the banks is they can borrow?
Speaker 3 (14:12):
Oh? Very much so. And that's one of the benefits
of using a financial advisor is, as I said, the
bank might tell you can borrow a million dollars and
those repayments might be six grand a month, which might
based on on paper on your income say yep, that's doable.
But you might not be comfortable with that. You might
(14:33):
want to go and see oasis. You might want to,
you know, go to the sports games, go watch the
All Blacks, which costs a bit these days, and you know,
and having a mortgage might hinder that. And so we've
got to look at things in reality as well. Yeah,
and so yeah, absolutely, our jobs as financial advisors is
not simply to say, well, the banks is you can
spend a million to go and do that.
Speaker 2 (14:53):
Hey, we'd love your cause on this on eight and eighty,
what was your approach to finding out what the bank
would lend you versus what you decided you would you
would want to borrow and feel, I mean, how much
did you have to sacrifice too? Because often the case
is if you just want to get the loan that
you absolutely need to get into the market, you might
(15:13):
have had to max it out anyway. But we'd love
to hear from you. Should you should you, as a
matter of course, max out what the bank will loan
to you? Have you done that because you thought, oh well,
actually we're going to spend another couple hundred thousand, we'll
get something in a slightly different neighborhood or with an
extra bedroom. So what did you what approach did have
you taken to what the bank would loan you? And
did it shock you that what you thought you could
(15:34):
borrow was different to what the bank thought you could borrow.
We'd love your cause on this on eight hundred and
eighty ten eighty where with Peter Norrissy's managing director at
Ops Mortgages. And so if you've got any questions around borrowing,
or you know, if you've got a question around restructuring,
because we've seen interest rates change and people decide, oh god,
I'm stuck on this. I wouldn't mind getting out of that.
But if you've got any questions you want to ask Peter,
(15:55):
I'm sure he's happy to sort of give you some
broad general advice without being specific financial advice. That's age
your disclaim. It's twenty three past four news Talk. Sa'd
be this talk, said be. This is the one roof
Rady to show my guests. Peter and I was talking
about how much you should borrow and should you always
max it out. Now, I've got to be fair to anyone.
A lot of people who are getting into the market.
(16:17):
They are hanging out, I think, Peter, aren't they to
just get enough to get the maxed, to get to
borrow the maximum amount and hopefully the maximum will allow
them to get the house that they sort of want
to just get into the market. Is that quite a
common scenario where you know they're really just going, well,
I've got this much saved. God, I really hope we
can get the extra seven hundred and fifty from the bank. Yeah. Absolutely,
(16:39):
Hand a second, I'll just turn on your mic.
Speaker 3 (16:41):
Sorry, yeah, absolutely, yeah. I mean, part of it is.
Part of it comes back to do you just want
to get into the market first? I buy your emotions
get into it as well. You're just excited you want
to live in a particular area. Houses cost a particular
price to live in those areas. Thankfully, they've come back
a bit over the last while. It's making it easier.
Interest rates make it look more affordable. But you're also
(17:02):
going to remember that borrowers the banks apply the test rates,
but borrowers don't often think about that test rate being reality.
They think about what the rate is today and work
it out at four point four to nine, they say, well,
that's affordable, and then our job is to make sure
they understand that it could change, and it has done
(17:22):
over the last you know, rates have bounced around over
the last few years and really demonstrated that being cautious
is appropriate.
Speaker 2 (17:31):
Are there things do the bank, what the bank will
lend people? Does that? Does that take into account? For instance,
newly weirds, you know you might have a you know,
good chance you're gonna have kids? How far does how
far does the bank look into those potential circumstances.
Speaker 3 (17:46):
That the only only so far. One of the question
that is commonly asked from the banks now is what's
going Is anything expected to change in the next twelve months?
So as long as you can look that far ahead
and most of the time say no, no, no expected changes,
then that takes that box from the bank perspective. They've
covered themselves. And if something changes in thirteen months, then
(18:06):
because if you're.
Speaker 2 (18:07):
A couple, well, if you're a couple and you want
to be hoping that you're going to last, you know,
either forever or for a long time, long enough to
have kids, I would have I'm surprised actually, But of course,
if you want if you are one of those couples
and you want to borrow as much as you can.
Are you expecting anything to change? No, not really. I
mean because you know, honeymoon period it's been two or
three years, and maybe have kids, but that's still a
(18:30):
big cost that comes at the end. I mean I
look at people of at the difference and what you
can do with your income with and without kids. It's
a big deal.
Speaker 3 (18:40):
Absolutely. I've got a nine month old at home and
I can tell you it makes a difference having one
income versus too. So yeah, it's something that needs to
be needs to be talked about. Our rollers again as
a financial advisors, to talk to clients and understand if
there are those changes. But you can only go so
far with that. You can't assume that because someone's newly
married they are going to have kids.
Speaker 2 (19:00):
No, I mean, actually, is it almost not okay to ask?
I mean, if you've got a couple who come in,
if you're a bank or a mortgage broker advisor, you've
got a couple who come in, they're excited about starting
life together, they're getting married in six months time. Do
you actually ask them about having kids? Or can the
(19:22):
bank ask? Or is are there some questions you can't
ask because I always think money is involved in banks.
They'll ask you for anything they want.
Speaker 3 (19:28):
Yeah, and you write more off than they would. But
they are looking very short term when they're asking that question. Again,
they can't assume that they will. A lot of people
don't these days, and there's certain questions that are a
little bit more limited these days as well in terms
of whether you should ask them or not. But our
role is to make sure that clients are aware of
those potential risks when they are borrowing money. What could change.
Interest rates could go up, you could have a kid,
(19:49):
you could lose your job.
Speaker 2 (19:51):
Got quite an extraordinary text here. At twenty one and
twenty three, my husband and I were told by a
mortgage broker we could get one point two million. We
were both working full time, but I was freshly at
a universary. Literally no way that we could have afforded that,
even with low rates. My dad then went in to
find out how much we could get under his name.
(20:13):
He's got a fully paid off house, a decent salary,
and has no debt, and was told that he could
get four hundred and fifty thousand.
Speaker 3 (20:21):
Ah.
Speaker 2 (20:22):
Is there something in missing in that story? Anyway? They
ended up giving up on the broken went straight to
the bank, ended up being pre approved for Oh, it
sounds like the broker did something weird. He ended up
getting pre approved at eight hundred and fifty and my
dad for one point six million. So that sounds like
just some mixed messages from a broker, doesn't it.
Speaker 3 (20:40):
Yeah, that sounds like maybe there was a little bit
of something not quite presented well to the bank. I'd say,
especially if you've gone they've gone direct to the bank
and got a much different hunter.
Speaker 2 (20:50):
Yeah, what are the things that people should think about
then when they're borrowing, If you've got a new lenders
coming in new borrowers, should I say, what are the
things that you get to think about separate to what
the bank might be talking to them about.
Speaker 3 (21:06):
Well, ideal, if they're dealing with us, the bank's not
really talking to them about much.
Speaker 2 (21:09):
Sorry, Okay, yeah, no, good point.
Speaker 3 (21:12):
Yeah, but no, But I argue what you mean the
big one. Most clients when they're coming to see us,
they just want to know what they can what they
can borrow, what that's going to look like, what their
repayment's going to look like, how that's going to look
over the long term. And then if it's known or occupy,
how do they pay that off? What are the tips
and tricks that they need to think about to be
able to get that deck on? But initially the fundamental
(21:34):
question is how much can I borrow? And then it's
about figuring out is that enough or is it too much?
And what are they comfortable with in terms of repayments?
And then our drobs also to analyze their bank statements
and see what kind of habits do they have at
the moment? What you know, do they demonstrate that they
could spend fifteen hundred dollars a week on their mortgage
(21:55):
when actually at the moment they're flatting and only spending
two hundred dollars a week, So you know, we've got
to talk to them about that.
Speaker 2 (22:03):
What are the biggest what are the the stumbling blocks
for people when it comes to working that sort of
thing out? Is it just I mean, do you do
you advise them on lock this is what the bank,
this is what you want to borrow, You realize that
a couple of your spending habits are going to have
to change. How often do you sort of intervene in
that sort of respect?
Speaker 3 (22:22):
Quite often? I mean, like I said, we when we're
presenting an application to the bank, we've we've gone through
the client's bank statements, checked if there's any unarranged overdrafts,
any bad habits, any after pays or anything like that
that might demonstrate to the bank that you're living beyond
your means. As you do you have a credit card,
and is it paid off in full every month? If not, again,
(22:45):
it's borrowing from the future, so it looks like you
can't afford how are you're living. So it's about sometimes
it might just be about saying to clients, lock you
earn enough income, but we've got to start demonstrating to
the bank that you've got some good habits. So let's
go away for a few months and put together a
bit of a plan and then come back.
Speaker 2 (23:02):
So is that often the state the part of the
process because people have got some bad spending habits and
you say, look, you're not going to get what you
want right now, given this is what we're watching you're spending.
How long do they have to go away and demonstrate
different spending habits.
Speaker 3 (23:16):
I think there's bad habits and then there's really bad habits.
Speaker 2 (23:18):
What are bad habits and what are really bad habits.
Speaker 3 (23:20):
Have also really bad stuff as you, like I said,
your typical sort of after pays, which again not always
a lot of people use after pays as a way
of you know, just because it's arguably free money, but
more often than not, it's used because you don't have
enough money, and so that demonstrates that you're not you
don't have any regular savings or you know you can't
you can't meet those payments. Your other bad stuff is
(23:42):
unarranged overdrafts or missed payments, direct debits, bouncing, those sorts
of things that would be really bad. Those would demonstrate
to the bank that hey, they probably shouldn't be lending
you any money. You're not quite ready bad habits. It's
not even really bad.
Speaker 2 (23:55):
I thought you were going to tell me a casino
account or something.
Speaker 3 (23:59):
Actually to be fair, because yeah, it's a good one actually, Yeah,
casinos tabs, that sort of stuff where it's read clearly
signals a bit of a habit. Yeah, the bank will
absolutely ask questions around that.
Speaker 2 (24:11):
And when you say ask questions, is there an answer
they can get where they're okay with it.
Speaker 3 (24:16):
Well, some people have, you know, they might have a
separate account, a bit of a flutter account with their mates.
I check one hundred bucks in and sort of dabble.
And I've got a good friend of mine who says
a group of mates and they bet on the NRL
every week, And if you just looked at that account,
you'd say there's a problem there, and actually there's an
explained So if it's.
Speaker 2 (24:35):
Just part of it, it's a bit like so for instance,
somebody has a hobby or whatever if they belong to
a sports club, and if you just happen to be
part of something where you have a flutter with your
mates on the NRL, that's all right, yeah, absolutely, Whereas
if you've got a sort of waxing and waning sort
of up and down balance depending on how lucky have
you been at the horses, that might be a bit different.
Speaker 3 (24:52):
Yep, yep, yeah. The bank want to look too well
on that. And then there's the stuff that the media
does a good job of hyping up. The stuff Like
I mentioned earlier, I went to Kmart, I spent too
much money so the bank declined me, or you know,
spent too much on groceries or whatever happened to be.
That's not reality. The banks aren't going to that level
these days. There was a period of time where the
(25:15):
responsible lending code was in, their banks were scraping bank
statements and really analyzing spending. Thankfully we're not there now,
and so it means that some of those you know,
if you've been on holiday in the last month and
spent up large outside of what you normally would, we
can explain that one, whereas previously that wasn't possible.
Speaker 2 (25:34):
What was that came out? Story? I mean why, I
mean you said the media are mischievous on that, and
of course the media was going to take it, you know,
the story that sticks its head above the parapet and
report it. What actually was that? What was going?
Speaker 3 (25:45):
Oh, there was an article a few years back that
came out when interest rates were were low, but the
responsible lending code was in, and what the banks were
doing was they were scraping your bank statements. So they
had invested large amounts of money and technology to really
analyze every single dollar of your spending. So when you
present an application to a bank, you might say that
you spend five hundred dollars a month on miss Laney's
(26:09):
general expenses, but they were analyzing your bank samends and saying, well, actually,
you spent five hundred and three dollars last month, that's
what you and that penalized you. So there was a
period of time where that was happening. One of those
stories called on and it.
Speaker 2 (26:24):
Okay, look, we'd love your cause on this as well, though,
at your approach to what the bank will lend you
or what you can borrow versus what you should borrow,
or you what you want to borrow, and give us
a call on that on eight hundred and eighty ten eighty.
There are some things with other couple of the things
we're going to dig into as well before we wrap
up the hour, and in fact, one of them is
there was a story about Prime Minister Christopher Luxen who
(26:45):
got some rates relieved relief. Look, it's a bit of
a beat up on him, but it's a story that
you know, he's the prime minister, so people are curious
about it. But he objected to his rates valuation and
saved himself are.
Speaker 4 (26:56):
Rates he saved himself I think it was eight thousand
bucks in rates, And we're gonna have a bit of
a chat about whether that's a good idea to have
to your rates valuation, because somebody once said to me,
and I just was.
Speaker 2 (27:09):
Too late objecting to ours. Anyway, when I successfully did challenge,
and it was when the market was quite buoyant, and
I successfully challenged the value because I wanted to save
a few hundred bucks of my rates and I won.
And somebody said to me, that was a really dumb
thing to do, because eventually you're going to want to
sell that property and you don't want it to be
downplayed by the council valuation. And we might just dig
(27:30):
into that a little bit in just a second. This
is one Rufredio Shamba. Guest, he's Peter Norris. He's managing
director at Opia's Mortgages Opah's opes. It sounds like I'll
put an that's z in there, doesn't it. We'll be
back in just a moment. It is coming up to
twenty three. It's just gone twenty three minutes to five
news Talk Sai'd be with Tim Beveridge. My guest is
Peter Noris, he's managing director Op's Mortgages, talking about how
(27:53):
much you should and could borrow and do they both
meet up? Should you borrow as much as you can
eight hundred and eighty ten to eighty and also you
might want to break your mortgage. We might have a
chat about that in just a moment as well. But guy,
get a.
Speaker 5 (28:06):
How are you doing good?
Speaker 2 (28:07):
Thanks?
Speaker 5 (28:10):
Yeah, I was listening to the show It's good, it's good,
it's good. Into I was just wanting to ask Petere
his experience of thoughts on break fees from the banks. Like,
we're in the process of buying a new house, looking
to buy a new house, keeping our existing ones, getting
the funding through existing mortgage provider. Yeah, and they're coming
(28:35):
out as telling us is going to be a break fee,
and we're not, like, well, we're going to take out
borrowing with you again for a lot more money. And
I feel like talented to shove the break fee is
a standard? Is there any negotiation on those because at
the minute they're saying no, no negotiation, but there is
a bit of a sweetener sort of.
Speaker 2 (28:54):
So you you wanted to restructure all your mortgages, but
you're buying another house.
Speaker 3 (28:59):
Bricked.
Speaker 2 (28:59):
Yeah, okay, Peter, what are you reckon? Well, hang on,
hang on here, We're going to put your mind.
Speaker 3 (29:05):
So are you selling your existing place and buying a
new one?
Speaker 2 (29:10):
Yeah?
Speaker 5 (29:10):
Selling it to our so or through a look through company,
if you know what I mean. So we're taking the equity.
Speaker 3 (29:15):
Oh yeah, you're restructuring your lending from one entity to another.
And then and then therefore the bank will treat that
is breaking your lending and putting it into the new entity.
So taking out a new loan. So yeah, the bank will,
but the bank will will charge a breakthrough. They should
I dearly look to pay you some incentive to for
(29:36):
the new lending though, because of the treat that as
new lending.
Speaker 2 (29:38):
Are they just can I just check? So that are
they saying that they're going to break charge your break
fee even if you renew your lending with the new
entities with the same bank, or they were they threatening
that if you go elsewhere, this is your break fee.
Speaker 5 (29:55):
No, no, yes, sticking with them. We haven't even said
we're going to go elsewhere. Sticking with them. Oh yeah,
you're going to get hit with a brief Come on,
that's good favor.
Speaker 2 (30:05):
So what do you recompeter That sounds a bit peculiar.
Speaker 3 (30:08):
Yeah, every bank is a little bit different. Some banks
can move the lending what's called sort of like a
transfer loan with home they'll shift the lending from one
entity to another, and but you'll retain the current interest
rate and therefore not have to pay a break fee.
Some banks simply can't do that, and we'll have to.
You'll have to pay a break fee and start that
lending again, but you will reduce the interest rate.
Speaker 2 (30:28):
What can he bargain with them in some sense, I mean,
would a mortgage advice and be able to help them
with that even though there are lendings established.
Speaker 3 (30:37):
Look, I'd like to say yes to that. Banks are
pretty strict on break fees. There's always a way to negotiating,
and you'd like to think that if you're staying with
that bank, and again, as I said, hopefully getting a
cash back to stay with that bank. Hopefully that bank
is giving you a cash incentive to stay. Otherwise there
really is no incentive. You're paying a break fee and
not getting anything on the other side. But hopefully with
(30:59):
a break fee, a reduced interest rate, and a cash
back for the new lending, it will end up in
a cost neutral exercise. Obviously sometimes it doesn't, but but
the rail is plexible charge that for you.
Speaker 2 (31:13):
Can you get a bit of right elsewhere? Guy? Or
you actually quite like the deal that your bank's got
apart from the break fee thing, and.
Speaker 5 (31:19):
There were all pretty much as much of a muchness
I think, but yeah, give you some curious Yeah, yeah,
yeah they did offer that, and I was just wondering.
It's sort of banging my head against the break and
ball telling telling them I'm not doing your break fee.
You've waved a break fee and give me the cash back, thanks,
and we'll stick with you.
Speaker 2 (31:39):
Yeah. So so hong on they're giving you, they're often
you cash back and charging a break fee. So does
it cancel out?
Speaker 5 (31:48):
And I'm getting the impressive he sold that. Yeah, it's
going to camp Lea. It might be a little bit
more cash back. But I was just curious about the
break fees, like, yeah, well mortgage of ide is negotiate
them saying that I will waive the breakthree thanks. So
I think, yeah, as.
Speaker 3 (32:05):
Long as as long as it cancels each other out
and you're no worse off, then you might just have
to suck that one up. If you went to another bank,
you're going to pay the break fee and get the
cash back as well and pay some legal fees for
the move, so you might be worse off. So if
you can, if you make it work with staying with
the bank, then.
Speaker 2 (32:20):
Good luck, Okay, good on. So well, I mean I'm
reading between the lines. I think, Okay, you're getting some
cash back, you're getting a break fee, no harm, no foul.
I just probably just go along with it, wouldn't you.
I think that's what I'm detecting.
Speaker 3 (32:36):
Yeah, yeah, I agree if you were, if you were
paying a break fee and not getting a cash back,
then I'd be pushing your point on that.
Speaker 2 (32:41):
Is it actually just the bank's process that they that
they have to present it that way. Of course. Imagine
I'm wondering if they just said, look, if you transfer
your lending to these new entities, look, it's not going
to cost you anything, as opposed to them saying we're
going to give you some cash back, but we're going
(33:02):
to charge you a great break fee. I have a
suspicion that if they said to go, look, we're happy
to work this all out and we're just restructure it
and all done. But because they mentioned fees, break fees
and cash bonuses, it's made them go, what what's this
about a break fee?
Speaker 3 (33:18):
Yeah, yeah, definitely part of that. It could also be
it could have been presented away where the assumption as
being made that the client wants to break their loan
and start on the lower rates, wants to reduce their rate,
therefore there has to be a break fee. But actually,
in reality what may happen is they might be happy
to stick on the current rates and terms, and that
just hasn't been communicated.
Speaker 2 (33:36):
Yeah, would there be an option there? I mean, it's
difficult to know, of course, But if they're keeping their
existing lending and they're doing a look through company, obviously
they're setting it up as some investment where they could
just continue with what they've got and just take a
new loan out at another bank, I guess for the
new house, which they could do.
Speaker 3 (33:55):
But well, it sounds like the house the set is
only one house here. Oh, it's just being shifted from
their joint names into their company, into a new company.
Speaker 2 (34:02):
And I thought they were I thought they were buying
another house but sticking the existing one until look through company.
But anyway, we don't know because he's gone. Actually, boy,
we've almost tooked ourselves out because we haven't got much
time to go before we have to come back with
the property of the week. So might do a few
texts and we'll have to leave that discussion around the rates. Oh, actually,
I get your take on it. Would you haggle your
(34:24):
rates down for the or is it about does the
rates valuation? People tell me all the time rates council
valuations are meaningless? So should you haggle your value of
your property down for a cheaper rates bill like lux
and did?
Speaker 3 (34:37):
I probably come back to what you your mate said
when you did it that if you're looking if you
have plans to sell within the next few years, I'd
probably think twice about that, Yeah, because potential buyers look
at it. If you've got no plans to do that
in the next few years and it's kind of reset
itself at that point anyway, then then you'd probably be
in support of the decision. It doesn't impeat your borrowing.
(35:00):
Gone are the days where banks have really looked at
the CV to lend the against. These days they have
other systems that are decided on the property's worth.
Speaker 2 (35:09):
Another text Camson it comes in on the bank breaking fees.
It says it's important to note the bank brack fee
has to be their genuine cost. They can't make money
out of it. Well, that makes sense, doesn't it?
Speaker 3 (35:18):
Absolutely?
Speaker 2 (35:19):
So? It shouldn't just be a tool to keep you,
to keep you there. Hey, look we need to take
a break. We'll come back and just a moment with
the one roof properly of the week. It is twelve
minutes to five news talks.
Speaker 1 (35:29):
He'd be the one roof property of the week on
the weekend collective.
Speaker 2 (35:35):
Yes, so one with probably of the week. Actually, it's funny.
I was just discussing the one we had last week,
which we weren't too keen on, but I am quite
keen on this one. And in terms of affordability and
what you're getting, it does look fairly affordable. I'm quite
surprised it is. The address is five unit, five Dash
twenty nine Saint Benedict Street, eden Terrace, Auckland City. It's
(35:59):
it's okay. It's two bedrooms and two bathrooms, two parking spaces,
which I think is a big plus. The houses a
hundred and sixty seven square meters. It is built basically
over a century ago, in nineteen fifteen. But it's described
as I'll read the blurb for it briefly. It says
it's an urban sanctuary of unparalleled scale and character, tucked
away in a boutique warehouse conversion of just five residences.
(36:21):
It's too close to two hundred square meters apartment basically
described as a hidden gem blending history and elegance. It's
got sowing ceilings, polished concrete, timber floors, exposed brick and
I don't mind telling you I actually am fairly impressed
with this, and I'll throw it to Peter Knowllys Norris.
How would you describe it? Peter?
Speaker 3 (36:43):
Yeah, I would agree with you. I love that two bedroom,
two bathroom meets the affordability criteria and over a million dollars,
but it's.
Speaker 2 (36:53):
I'm so used to reading out things at a seven
or eight million, so.
Speaker 3 (36:56):
Yeah, no, I rely like a really big fan of
the exposed brick. I think the size of it for
a two bedroom, two bathroom, and like you say, a
couple of carp in Central Auckland's pretty attractive.
Speaker 2 (37:08):
I think it's one of those things. I mean, it is,
so if you want to go and check it out.
All the walls are exposed brick, but it wouldn't be
a house you could buy sight unseen. You definitely not
to need to go and have a walk around and
get the vibe for it. But it does look like
in terms of its location, quite a quite a bit
of bang for bucks.
Speaker 3 (37:27):
It am I being, I mean, I'm married with three kids,
so it's not gonna work for me, but if well
as a young couple, I think it's a great, great spot.
Speaker 2 (37:36):
Yeah, so go and check it out on the one Roof,
one Roof website. It is five Dash twenty nine Saint
Benedict's Street. And as I say, the price expectation is well,
this is another one that ties into the conversation we were
sort of going to going to have and we might
still have managed to squeeze a couple more minutes out
of it, where the price that it's estimated as is
(38:00):
one point zero nine even though the r vs one
point three. I can't quite weak that out. What do
you reckon said all about just the markets come off
of it? Or yeah?
Speaker 3 (38:07):
Yeah, I think that demonstrates where the markets at.
Speaker 2 (38:10):
Yeah, maybe they didn't object to their rates as I
should have done. Would you have objected to the rates
if you were lux and he had what's as why
heck he getaways valued at ten mil and he got
it down to seven and has saved himself close to
nine grand and rates.
Speaker 3 (38:25):
Yeah, he's stroking a bit, doesn't he.
Speaker 2 (38:28):
Actually, it's funny. I think it's the lesson is there
that even if you people who have a lot of
money are careful with what money they've got. Because I
was surprised that he bothered. But then again, and it's
eight thousand bucks. I mean that's how many how much
per week? Is that?
Speaker 3 (38:47):
Eight thousand bucks a year? One hundred and fifty bucks
a week?
Speaker 2 (38:49):
Yeah, so he saved that. Would you would you have
quered your rates? Would you ever query your rate bill?
Speaker 3 (38:56):
Yeah?
Speaker 2 (38:56):
I probably would anyway, because you're not thinking going anywhere anytimes?
I guess. Yeah, interesting one, isn't it? Anyway? Unfortunately, didn't
leave really enough time to flog that one out. A
couple of texts here coming and said one person said
that there were some large eerrors in the city rates assessments.
Do you know anything about that? Where there? Actually? Did
(39:17):
they have any glitchers with their database that I'm suffering from?
Speaker 3 (39:20):
Possibly it's all data, to be fair, No, I don't know.
Speaker 2 (39:24):
Okay, anyway, Hey, anyway, if people want to check out
what you do, where do they go for ops? Mortgages?
How do they track you down?
Speaker 3 (39:31):
Peter best place to go to be the Op's mortgages,
Dot Coto and Zen. Do you find everything you need?
Speaker 2 (39:35):
Excellent? Good? Hey, good, thanks for coming on show. You're
going to Auckland f C.
Speaker 3 (39:38):
Now, yeah, absolutely, off there now, it'll be a little
bit late, probably about twenty minutes late.
Speaker 2 (39:41):
I see you've got the track toop on there is
there is there a blue jersey or what do they
call it? The strip.
Speaker 3 (39:51):
As well?
Speaker 2 (39:51):
Yeah, yeah, and I guess that all comes off if
you score a goal.
Speaker 3 (39:54):
Yeah, that's the Phoenix, not us.
Speaker 2 (39:57):
It's only the Phoenix that take their shirts off.
Speaker 3 (39:59):
Yeah, that's right.
Speaker 2 (40:00):
There is something a little bit more refined about you guys. Anyway,
he's hoping that Auckland C ever have a right start
their game and season as well. We'll be chatting about that,
by the way on the Sports Rat with Nathan Limb,
which will be at quarter to six, of course, but
the game is due to start off and kick off
in a few minutes, so Peter's going to sprint catches
Uber and head to the game and we'll be back
(40:21):
shortly with the parents squad. Catherine Burketts with us talking
about whether you should stay together for the safety kids
or maybe the other question is should you split up
for the safety of kids, which is some of the
comments we had in the newsroom about that as well.
Eight hundred and eighty ten to eighty will be. The
number is three and a half minutes to five.
Speaker 1 (40:55):
For more from the Weekend Collective, listen live to news
Talk Said Be weekends from three pm, or follow the
podcast on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talks
be you know, yes.
Speaker 2 (00:33):
Welcome back or welcome on to the Weekend Collective. Now
this is the bit where we want your calls and
your participation on eight hundred eighty ten eighty. We want
we invite whatever word you want to use. Eight hundred
eighty ten eighty text nine nine two. And just before
we get into this hour, looking ahead till l after
five for the Parents Squad, we're going to be having
a chat with Catherine Burkett about whether you should in fact,
(00:56):
whether you should in fact stay together for the sake
of your kids, or you can put it the other way,
should you split up for the safety your kids? Because
we already had just in mentioning this before we went
on air in the newsroom at a few hot takes
on that as well, so we do talking about that
after five for the Parents Squad. But right now this
is the one roof radio show. And as I say,
(01:18):
we want your calls on eighte hundred and eighty ten
eighty and text on nine to two nine two. Now
what we're going to talk about is, firstly is this
goes back to when I first inquired about getting a
mortgage when we bought our place and the bank told
me how much I could borrow, which made me well.
I wouldn't say I would pass out or anything, but
(01:39):
it made me my eyes widen, thinking, good lord, I
can't imagine having a mortgage that bag. And banks. Look,
banks are careful as well. They don't want to lend
you amount of money they don't think you can pay for.
But it does seem from at least a few stories
I've heard in my own experience that banks can be
happy to lend you what might be an eye watering
amount of money, But does that mean you'll be happy
(02:03):
once the repayments kick out years down the line, when
interest rates maybe change a bit. So how much do
you need to have a really strong handle on what
you're comfortable with versus this is what the banks will
end us. Let's do it anyway. We have a new
guest on the show to talk about that. He's managing
director at Opis Mortgages. That's the name of a company.
(02:23):
It might sound familiar give him. That's where Ed mc
knight comes from. And he's his name is Peter Norris
and he's with me.
Speaker 3 (02:29):
Now, good Peter, how are you going, Yeah, good, good,
thanks for having me.
Speaker 2 (02:32):
Hey, since you knew, what's your what's your background and
into leading into what you do now?
Speaker 3 (02:39):
Yeah, Like I said, I'm managing director at Opes Mortgages,
so Ed McKnight's business partner. My background is I've been
a mortgage advisor now for Oh it feels like eternality
coming up. Fourteen odd years. Prior to that, I was
at B and Z for five years, just started fresh
out of high school. Actually I jumped in out of
high school and into the bank in the middle of
(03:00):
the GFC. I didn't even know what a GFC was,
and here I was lending money at eighteen years old,
never never owned a house, and but the bank's banks
bring in It was actually a great, great stopping ground
for me. Learned a lot did that for five years
and they jumped out of there.
Speaker 2 (03:13):
And what was the first impression you got when you're
doing that?
Speaker 3 (03:16):
Oh, do you know what I You go into the
bank at eighteen years old, you get an oversized suit,
you get given a wardrobe allowance, and and nothing really
really fits because you're fresh out of school. But yeah,
first impression was that was that was enjoyable. I really
loved it. It wasn't what I saw myself doing.
Speaker 2 (03:38):
What led you? What led you to get a job
there in the first place?
Speaker 3 (03:40):
Then, yeah, a good question. Like I said, it wasn't
at all what I had envisaged me doing. I grew
up playing football. I always wanted to be a football player,
and that's that's sort of where I wanted to go.
But during high school holidays, I did some casual work
at the bank and realized that you can earn pretty.
Speaker 2 (03:58):
Well yeah, and thought I want to earn some money.
Speaker 3 (04:03):
Yeah, And so I got used to doing in that
in the school holidays, and then started off at university
fresh out of high school after the school holidays working
at the bank and earning good money, and then went
to earning nothing and was like, I'm not about that.
I'll go back to earning some money. So I came
that idea and went to the bank.
Speaker 2 (04:20):
How long did it? How long did it take you
in your journey where you were you really felt that
you knew something, because you know, obviously you go from
It's like I mean, when I started practicing law back
in the day. You know, you get out of law school,
the four year degree, and you realize when it comes
to practicing law, you know next to nothing, and then
you gradually your conference builds over time. When was it
for you that you sort of felt you had something
(04:41):
genuinely like, oh sure I know what to do here?
Speaker 3 (04:44):
Yeah, well, it depends on I mean, there's still some
days now where where there's some new stuff to be learned.
But back then I kind of took the Richard Branson
approach of say, yes, figure it out later, or it
to you make it kind of approaching. I mean I
was I was nineteen and branch manager in Milford Being's
(05:05):
and it was you know, you look back and go,
what was that probably says more about the bank than
it does about me.
Speaker 2 (05:11):
Well, that tells me you must have been a relatively
quick learner.
Speaker 3 (05:15):
Yeah. The bank's really good at progressing the good ones through.
So if you've had bank managers in the past, you'll
know that they're any good. They often move on quite quickly,
and so the bank really does progress you. And if
you are half decent, will we'll promote you and move
you into that next role and put you short to
throw you in the deep end with lending or with
business lending or whatever it happens. To be Yeah, and
(05:36):
I just I was someone that really wanted to give
everything a crack. So I ended up as a branch manager,
ended up as as business manager, never owned a business,
which again potentially says a bit more for the for
about the bank than it is about me. But what
it does also demonstrators where having a professional mortgage advisor
or financial advisor is really important.
Speaker 2 (05:55):
As well, because there was a time when having a
mortgage mortgage advisor or a broker or something was didn't
seem that common. Whereas I mean, I've been doing this
property show for a little bit now and it almost
feels like it's the big One of the dumber things
you can do is not get one. Are people turning
(06:15):
to mortgage brokers and advised as much more as a
percentage of the population than they might have done twenty
thirty years ago.
Speaker 3 (06:21):
Oh significantly So the numbers over the last oh since
I've been doing it would have grown from twenty twenty
five percent and a little what you're talking about, it
wasn't really the dune thing. You would just go to
your local branch up to now would be closer to
seventy percent wow of clients would use an advisor now.
Speaker 2 (06:38):
Craky and so how did you get involved with the opia's.
Speaker 3 (06:41):
Chaps That sums it up.
Speaker 2 (06:45):
Copez Mortgages is owned by Opia's partners.
Speaker 3 (06:48):
Right out of the Open group. Yeah. Absolutely, So Opus
Mortgages we were. Opus was started twelve odd years ago
and it was built off really strong relationships with referral
sources such as mortgage advisors. So relied heavy on external
mortgage advisors to refer clients into my property. And so
(07:13):
I was one of those advisors. I was one of
the ones that was a preferred mortgage advisor for the guys.
And they reached a time where the business grew enough
that it wasn't so reliant on external referrals and actually
it was generating its own and where you go. So
where we go?
Speaker 2 (07:31):
We started the okay, well let's get onto that. Let's
get onto the first order business, which is the working out.
I mean, is this a common thing that people that
you have to deal with with clients with borrowers, is
that there is a certain amount that they can borrow.
But I mean I was shocked at how much the
bank thought I could pay. And I was probably a
little bit cynical about it as well, because well, of course,
(07:53):
so long as the bank feels it can get its
pound of flesh out of me. I'm not sure this
is a really dodgy thing. I'm going to say here.
Not dodgy, but I'm not sure how much they really
care about my long term prosperity or whatever. It's so
long as I can pay for that massive mortgage, which
the higher it is, and it's long as it's serviceable. Fine,
(08:16):
So how much of a difference is there between what
you should borrow versus what the bank will borrow?
Speaker 3 (08:21):
Yeah, I mean it's a relatively cynical view, so I'll
try and take a different difference attack to the banks
obviously are a business at the end of the day,
and we want them to be making money, so that's
probably an important point. They affordabilities runs in two different ways,
and I will always say this to clients when I'm
talking about what it is that they can afford. There's
(08:42):
what the bank says you can afford. And there's what
reality says you can afford. And that's your day to
day spending habits or what you're actually comfortable with. And
as long as what the bank says you can afford
is more than what you think you can afford, then
you'll be all right. It's the white times where you
think you can afford to borrow more, but the bank says, no,
you can't. That's where you're going to run into issues.
But well, I'll always have conversations with clients out well,
(09:05):
just because the bank says that you can borrow more
given times your income, doesn't mean that you should. Doesn't
mean that you're actually in the position where you're ready
to do that.
Speaker 2 (09:15):
Well, how often do people actually max out what the
banks will lend them? They say, the bank says, look,
you're good for a million, and they go, great, we're
gonna we've got a deposit of three hundred thousand. We're
going to spend one point three mil. I mean, some
people will be maxing out what they can borrow simply
to get in the market. Let's not you know, pussy
foot around with that. It's still it's expensive to buy
(09:36):
a house.
Speaker 3 (09:37):
Yeah, absolutely, you'd be surprised how often people do push
those limits as long as there's it depends on what
age and stage they are as well, but what their
runway is for work life or what their projected earnings are,
and whether or not. What looks to be tight now
may not be so tight in the future as they
continue to earn more. But borrowing capacity has increased a
(10:01):
lot as interest rates have fallen. The banks have what's
called a test which is where they apply a stress
test to what you can or whatever the today's interest
rates are. For example, right now, one year rates four
point four to nine, the test rate would be six
point seven to five, and they're testing that you're borrowing
against the higher rate in case rates go up.
Speaker 2 (10:21):
Now just on that wasn't the I mean, I was
ages ago advised by a friend you should always budget
to be able to ford eight percent. And the test
rate has varied from time to time, which makes because
it wasn't even higher, but just recently the test rate
was higher.
Speaker 3 (10:39):
Yeah, absolutely, so borrowing a year ago rates have fallen quickly,
and test rates have fallen from nine to six point
seven five, which is a and in some cases six
point yeah, six point five. In some cases six point seven.
Speaker 2 (10:55):
Five is about the middle round.
Speaker 3 (10:56):
And when was it nine eighteen months ago?
Speaker 2 (10:59):
You see? That is that's problematic because if eighteen months
ago it was nine percent, I mean, how do you
work out what your test rate should be, because how
does I would have thought that test rates should be
sort of worst case scenario, this is what you could
be up for. So how does it go from nine
(11:20):
to six points and five that's over two percent? Two
percent on well, on a million bucks is twenty twenty
thousand dollars. So what would you advise people's test rate
to be.
Speaker 3 (11:33):
I'm fairly comfortable with where they are today. What tends
to happen is isn'tights fall. Those test rates tend to
fall as well, and it really does push borrowing capacity up.
There is another measure that is restricting people's borrowing right now, though,
and that's debt to income ration. And that's that's an
important factor because with test rates coming down, we are
now seeing those debt to incomes really come come to play.
(11:56):
When they first got introduced, they did nothing because you
couldn't borrow that much. You were limited to four or
five times your income because of the test rate was
nine percent. Whereas now with the test rate at six
point seven five, you can really borrow sort of seven
and a half times your income.
Speaker 2 (12:09):
So when they do the debt to income ratio, that's
based on the test rate, not on the rate you've
got right, that you've got.
Speaker 3 (12:18):
Well, no, the det to income ratio is based on
your income, so you've.
Speaker 2 (12:21):
Got Sorry, sorry, I was my brain that had a moment.
Speaker 3 (12:25):
When you go and borrow money, you need to meet
two criteria. One is the serviceability and that's tested on
the test rate, and then the other one is the
debt to income. So if the test rate and all
the banks calculators say that you can borrow seven times
your income, but you're borrowing an owner occupied then you
will be restricted to six times your income, even though
(12:48):
the calculator says you can do more. So that dit
to income is acting as a control to make sure
that people don't over expose themselves to debt whilst intratrates
are coming down.
Speaker 2 (12:58):
So owner occupied you sat six times and for what
investors it seven times, But the stakes are still just
as high, aren't they? Or is it because you're an investor,
You've got another property and therefore the bank feels safer
pushing pushing it a bit more. There's more collateral, Yeah,
there's a bit of that to it.
Speaker 3 (13:16):
There's also the fact that you've got the rental income
as well, so you're not completely reliant on personal income,
so you've got the rental property. They apply shading to that.
So there's quite a few measures in there to protect
the borrower.
Speaker 2 (13:29):
So how do you go about advising clients on what
they should borrow versus what the bank says they borrow.
Will you generally go with what the bank says you
can borrow? Or do you also have a look at well,
you know, do you still want to go and see oasis? Well,
I mean, these are the things and when you see
where people squander money, the big what was it people
banging on about I can't have avocado on toast. I'm
(13:51):
not sure.
Speaker 3 (13:51):
There's a whole bunch going on around. So the banks said, no,
what was that? I spent some money at kmart, so
the bank said not to my borrowing because I spent
too much.
Speaker 2 (14:02):
Yeah that was.
Speaker 3 (14:05):
A couple of years back.
Speaker 2 (14:06):
So I mean, what do you give clients advice separate
to what the banks is they can borrow?
Speaker 3 (14:12):
Oh? Very much so. And that's one of the benefits
of using a financial advisor is, as I said, the
bank might tell you can borrow a million dollars and
those repayments might be six grand a month, which might
based on on paper on your income say yep, that's doable.
But you might not be comfortable with that. You might
(14:33):
want to go and see oasis. You might want to,
you know, go to the sports games, go watch the
All Blacks, which costs a bit these days, and you know,
and having a mortgage might hinder that. And so we've
got to look at things in reality as well. Yeah,
and so yeah, absolutely, our jobs as financial advisors is
not simply to say, well, the banks is you can
spend a million to go and do that.
Speaker 2 (14:53):
Hey, we'd love your cause on this on eight and eighty,
what was your approach to finding out what the bank
would lend you versus what you decided you would you
would want to borrow and feel, I mean, how much
did you have to sacrifice too? Because often the case
is if you just want to get the loan that
you absolutely need to get into the market, you might
(15:13):
have had to max it out anyway. But we'd love
to hear from you. Should you should you, as a
matter of course, max out what the bank will loan
to you? Have you done that because you thought, oh well,
actually we're going to spend another couple hundred thousand, we'll
get something in a slightly different neighborhood or with an
extra bedroom. So what did you what approach did have
you taken to what the bank would loan you? And
did it shock you that what you thought you could
(15:34):
borrow was different to what the bank thought you could borrow.
We'd love your cause on this on eight hundred and
eighty ten eighty where with Peter Norrissy's managing director at
Ops Mortgages. And so if you've got any questions around borrowing,
or you know, if you've got a question around restructuring,
because we've seen interest rates change and people decide, oh god,
I'm stuck on this. I wouldn't mind getting out of that.
But if you've got any questions you want to ask Peter,
(15:55):
I'm sure he's happy to sort of give you some
broad general advice without being specific financial advice. That's age
your disclaim. It's twenty three past four news Talk. Sa'd
be this talk, said be. This is the one roof
Rady to show my guests. Peter and I was talking
about how much you should borrow and should you always
max it out. Now, I've got to be fair to anyone.
A lot of people who are getting into the market.
(16:17):
They are hanging out, I think, Peter, aren't they to
just get enough to get the maxed, to get to
borrow the maximum amount and hopefully the maximum will allow
them to get the house that they sort of want
to just get into the market. Is that quite a
common scenario where you know they're really just going, well,
I've got this much saved. God, I really hope we
can get the extra seven hundred and fifty from the bank. Yeah. Absolutely,
(16:39):
Hand a second, I'll just turn on your mic.
Speaker 3 (16:41):
Sorry, yeah, absolutely, yeah. I mean, part of it is.
Part of it comes back to do you just want
to get into the market first? I buy your emotions
get into it as well. You're just excited you want
to live in a particular area. Houses cost a particular
price to live in those areas. Thankfully, they've come back
a bit over the last while. It's making it easier.
Interest rates make it look more affordable. But you're also
(17:02):
going to remember that borrowers the banks apply the test rates,
but borrowers don't often think about that test rate being reality.
They think about what the rate is today and work
it out at four point four to nine, they say, well,
that's affordable, and then our job is to make sure
they understand that it could change, and it has done
(17:22):
over the last you know, rates have bounced around over
the last few years and really demonstrated that being cautious
is appropriate.
Speaker 2 (17:31):
Are there things do the bank, what the bank will
lend people? Does that? Does that take into account? For instance,
newly weirds, you know you might have a you know,
good chance you're gonna have kids? How far does how
far does the bank look into those potential circumstances.
Speaker 3 (17:46):
That the only only so far. One of the question
that is commonly asked from the banks now is what's
going Is anything expected to change in the next twelve months?
So as long as you can look that far ahead
and most of the time say no, no, no expected changes,
then that takes that box from the bank perspective. They've
covered themselves. And if something changes in thirteen months, then
(18:06):
because if you're.
Speaker 2 (18:07):
A couple, well, if you're a couple and you want
to be hoping that you're going to last, you know,
either forever or for a long time, long enough to
have kids, I would have I'm surprised actually, But of course,
if you want if you are one of those couples
and you want to borrow as much as you can.
Are you expecting anything to change? No, not really. I
mean because you know, honeymoon period it's been two or
three years, and maybe have kids, but that's still a
(18:30):
big cost that comes at the end. I mean I
look at people of at the difference and what you
can do with your income with and without kids. It's
a big deal.
Speaker 3 (18:40):
Absolutely. I've got a nine month old at home and
I can tell you it makes a difference having one
income versus too. So yeah, it's something that needs to
be needs to be talked about. Our rollers again as
a financial advisors, to talk to clients and understand if
there are those changes. But you can only go so
far with that. You can't assume that because someone's newly
married they are going to have kids.
Speaker 2 (19:00):
No, I mean, actually, is it almost not okay to ask?
I mean, if you've got a couple who come in,
if you're a bank or a mortgage broker advisor, you've
got a couple who come in, they're excited about starting
life together, they're getting married in six months time. Do
you actually ask them about having kids? Or can the
(19:22):
bank ask? Or is are there some questions you can't
ask because I always think money is involved in banks.
They'll ask you for anything they want.
Speaker 3 (19:28):
Yeah, and you write more off than they would. But
they are looking very short term when they're asking that question. Again,
they can't assume that they will. A lot of people
don't these days, and there's certain questions that are a
little bit more limited these days as well in terms
of whether you should ask them or not. But our
role is to make sure that clients are aware of
those potential risks when they are borrowing money. What could change.
Interest rates could go up, you could have a kid,
(19:49):
you could lose your job.
Speaker 2 (19:51):
Got quite an extraordinary text here. At twenty one and
twenty three, my husband and I were told by a
mortgage broker we could get one point two million. We
were both working full time, but I was freshly at
a universary. Literally no way that we could have afforded that,
even with low rates. My dad then went in to
find out how much we could get under his name.
(20:13):
He's got a fully paid off house, a decent salary,
and has no debt, and was told that he could
get four hundred and fifty thousand.
Speaker 3 (20:21):
Ah.
Speaker 2 (20:22):
Is there something in missing in that story? Anyway? They
ended up giving up on the broken went straight to
the bank, ended up being pre approved for Oh, it
sounds like the broker did something weird. He ended up
getting pre approved at eight hundred and fifty and my
dad for one point six million. So that sounds like
just some mixed messages from a broker, doesn't it.
Speaker 3 (20:40):
Yeah, that sounds like maybe there was a little bit
of something not quite presented well to the bank. I'd say,
especially if you've gone they've gone direct to the bank
and got a much different hunter.
Speaker 2 (20:50):
Yeah, what are the things that people should think about
then when they're borrowing, If you've got a new lenders
coming in new borrowers, should I say, what are the
things that you get to think about separate to what
the bank might be talking to them about.
Speaker 3 (21:06):
Well, ideal, if they're dealing with us, the bank's not
really talking to them about much.
Speaker 2 (21:09):
Sorry, Okay, yeah, no, good point.
Speaker 3 (21:12):
Yeah, but no, But I argue what you mean the
big one. Most clients when they're coming to see us,
they just want to know what they can what they
can borrow, what that's going to look like, what their
repayment's going to look like, how that's going to look
over the long term. And then if it's known or occupy,
how do they pay that off? What are the tips
and tricks that they need to think about to be
able to get that deck on? But initially the fundamental
(21:34):
question is how much can I borrow? And then it's
about figuring out is that enough or is it too much?
And what are they comfortable with in terms of repayments?
And then our drobs also to analyze their bank statements
and see what kind of habits do they have at
the moment? What you know, do they demonstrate that they
could spend fifteen hundred dollars a week on their mortgage
(21:55):
when actually at the moment they're flatting and only spending
two hundred dollars a week, So you know, we've got
to talk to them about that.
Speaker 2 (22:03):
What are the biggest what are the the stumbling blocks
for people when it comes to working that sort of
thing out? Is it just I mean, do you do
you advise them on lock this is what the bank,
this is what you want to borrow, You realize that
a couple of your spending habits are going to have
to change. How often do you sort of intervene in
that sort of respect?
Speaker 3 (22:22):
Quite often? I mean, like I said, we when we're
presenting an application to the bank, we've we've gone through
the client's bank statements, checked if there's any unarranged overdrafts,
any bad habits, any after pays or anything like that
that might demonstrate to the bank that you're living beyond
your means. As you do you have a credit card,
and is it paid off in full every month? If not, again,
(22:45):
it's borrowing from the future, so it looks like you
can't afford how are you're living. So it's about sometimes
it might just be about saying to clients, lock you
earn enough income, but we've got to start demonstrating to
the bank that you've got some good habits. So let's
go away for a few months and put together a
bit of a plan and then come back.
Speaker 2 (23:02):
So is that often the state the part of the
process because people have got some bad spending habits and
you say, look, you're not going to get what you
want right now, given this is what we're watching you're spending.
How long do they have to go away and demonstrate
different spending habits.
Speaker 3 (23:16):
I think there's bad habits and then there's really bad habits.
Speaker 2 (23:18):
What are bad habits and what are really bad habits.
Speaker 3 (23:20):
Have also really bad stuff as you, like I said,
your typical sort of after pays, which again not always
a lot of people use after pays as a way
of you know, just because it's arguably free money, but
more often than not, it's used because you don't have
enough money, and so that demonstrates that you're not you
don't have any regular savings or you know you can't
you can't meet those payments. Your other bad stuff is
(23:42):
unarranged overdrafts or missed payments, direct debits, bouncing, those sorts
of things that would be really bad. Those would demonstrate
to the bank that hey, they probably shouldn't be lending
you any money. You're not quite ready bad habits. It's
not even really bad.
Speaker 2 (23:55):
I thought you were going to tell me a casino
account or something.
Speaker 3 (23:59):
Actually to be fair, because yeah, it's a good one actually, Yeah,
casinos tabs, that sort of stuff where it's read clearly
signals a bit of a habit. Yeah, the bank will
absolutely ask questions around that.
Speaker 2 (24:11):
And when you say ask questions, is there an answer
they can get where they're okay with it.
Speaker 3 (24:16):
Well, some people have, you know, they might have a
separate account, a bit of a flutter account with their mates.
I check one hundred bucks in and sort of dabble.
And I've got a good friend of mine who says
a group of mates and they bet on the NRL
every week, And if you just looked at that account,
you'd say there's a problem there, and actually there's an
explained So if it's.
Speaker 2 (24:35):
Just part of it, it's a bit like so for instance,
somebody has a hobby or whatever if they belong to
a sports club, and if you just happen to be
part of something where you have a flutter with your
mates on the NRL, that's all right, yeah, absolutely, Whereas
if you've got a sort of waxing and waning sort
of up and down balance depending on how lucky have
you been at the horses, that might be a bit different.
Speaker 3 (24:52):
Yep, yep, yeah. The bank want to look too well
on that. And then there's the stuff that the media
does a good job of hyping up. The stuff Like
I mentioned earlier, I went to Kmart, I spent too
much money so the bank declined me, or you know,
spent too much on groceries or whatever happened to be.
That's not reality. The banks aren't going to that level
these days. There was a period of time where the
(25:15):
responsible lending code was in, their banks were scraping bank
statements and really analyzing spending. Thankfully we're not there now,
and so it means that some of those you know,
if you've been on holiday in the last month and
spent up large outside of what you normally would, we
can explain that one, whereas previously that wasn't possible.
Speaker 2 (25:34):
What was that came out? Story? I mean why, I
mean you said the media are mischievous on that, and
of course the media was going to take it, you know,
the story that sticks its head above the parapet and
report it. What actually was that? What was going?
Speaker 3 (25:45):
Oh, there was an article a few years back that
came out when interest rates were were low, but the
responsible lending code was in, and what the banks were
doing was they were scraping your bank statements. So they
had invested large amounts of money and technology to really
analyze every single dollar of your spending. So when you
present an application to a bank, you might say that
you spend five hundred dollars a month on miss Laney's
(26:09):
general expenses, but they were analyzing your bank samends and saying, well, actually,
you spent five hundred and three dollars last month, that's
what you and that penalized you. So there was a
period of time where that was happening. One of those
stories called on and it.
Speaker 2 (26:24):
Okay, look, we'd love your cause on this as well, though,
at your approach to what the bank will lend you
or what you can borrow versus what you should borrow,
or you what you want to borrow, and give us
a call on that on eight hundred and eighty ten eighty.
There are some things with other couple of the things
we're going to dig into as well before we wrap
up the hour, and in fact, one of them is
there was a story about Prime Minister Christopher Luxen who
(26:45):
got some rates relieved relief. Look, it's a bit of
a beat up on him, but it's a story that
you know, he's the prime minister, so people are curious
about it. But he objected to his rates valuation and
saved himself are.
Speaker 4 (26:56):
Rates he saved himself I think it was eight thousand
bucks in rates, And we're gonna have a bit of
a chat about whether that's a good idea to have
to your rates valuation, because somebody once said to me,
and I just was.
Speaker 2 (27:09):
Too late objecting to ours. Anyway, when I successfully did challenge,
and it was when the market was quite buoyant, and
I successfully challenged the value because I wanted to save
a few hundred bucks of my rates and I won.
And somebody said to me, that was a really dumb
thing to do, because eventually you're going to want to
sell that property and you don't want it to be
downplayed by the council valuation. And we might just dig
(27:30):
into that a little bit in just a second. This
is one Rufredio Shamba. Guest, he's Peter Norris. He's managing
director at Opia's Mortgages Opah's opes. It sounds like I'll
put an that's z in there, doesn't it. We'll be
back in just a moment. It is coming up to
twenty three. It's just gone twenty three minutes to five
news Talk Sai'd be with Tim Beveridge. My guest is
Peter Noris, he's managing director Op's Mortgages, talking about how
(27:53):
much you should and could borrow and do they both
meet up? Should you borrow as much as you can
eight hundred and eighty ten to eighty and also you
might want to break your mortgage. We might have a
chat about that in just a moment as well. But guy,
get a.
Speaker 5 (28:06):
How are you doing good?
Speaker 2 (28:07):
Thanks?
Speaker 5 (28:10):
Yeah, I was listening to the show It's good, it's good,
it's good. Into I was just wanting to ask Petere
his experience of thoughts on break fees from the banks. Like,
we're in the process of buying a new house, looking
to buy a new house, keeping our existing ones, getting
the funding through existing mortgage provider. Yeah, and they're coming
(28:35):
out as telling us is going to be a break fee,
and we're not, like, well, we're going to take out
borrowing with you again for a lot more money. And
I feel like talented to shove the break fee is
a standard? Is there any negotiation on those because at
the minute they're saying no, no negotiation, but there is
a bit of a sweetener sort of.
Speaker 2 (28:54):
So you you wanted to restructure all your mortgages, but
you're buying another house.
Speaker 3 (28:59):
Bricked.
Speaker 2 (28:59):
Yeah, okay, Peter, what are you reckon? Well, hang on,
hang on here, We're going to put your mind.
Speaker 3 (29:05):
So are you selling your existing place and buying a
new one?
Speaker 2 (29:10):
Yeah?
Speaker 5 (29:10):
Selling it to our so or through a look through company,
if you know what I mean. So we're taking the equity.
Speaker 3 (29:15):
Oh yeah, you're restructuring your lending from one entity to another.
And then and then therefore the bank will treat that
is breaking your lending and putting it into the new entity.
So taking out a new loan. So yeah, the bank will,
but the bank will will charge a breakthrough. They should
I dearly look to pay you some incentive to for
(29:36):
the new lending though, because of the treat that as
new lending.
Speaker 2 (29:38):
Are they just can I just check? So that are
they saying that they're going to break charge your break
fee even if you renew your lending with the new
entities with the same bank, or they were they threatening
that if you go elsewhere, this is your break fee.
Speaker 5 (29:55):
No, no, yes, sticking with them. We haven't even said
we're going to go elsewhere. Sticking with them. Oh yeah,
you're going to get hit with a brief Come on,
that's good favor.
Speaker 2 (30:05):
So what do you recompeter That sounds a bit peculiar.
Speaker 3 (30:08):
Yeah, every bank is a little bit different. Some banks
can move the lending what's called sort of like a
transfer loan with home they'll shift the lending from one
entity to another, and but you'll retain the current interest
rate and therefore not have to pay a break fee.
Some banks simply can't do that, and we'll have to.
You'll have to pay a break fee and start that
lending again, but you will reduce the interest rate.
Speaker 2 (30:28):
What can he bargain with them in some sense, I mean,
would a mortgage advice and be able to help them
with that even though there are lendings established.
Speaker 3 (30:37):
Look, I'd like to say yes to that. Banks are
pretty strict on break fees. There's always a way to negotiating,
and you'd like to think that if you're staying with
that bank, and again, as I said, hopefully getting a
cash back to stay with that bank. Hopefully that bank
is giving you a cash incentive to stay. Otherwise there
really is no incentive. You're paying a break fee and
not getting anything on the other side. But hopefully with
(30:59):
a break fee, a reduced interest rate, and a cash
back for the new lending, it will end up in
a cost neutral exercise. Obviously sometimes it doesn't, but but
the rail is plexible charge that for you.
Speaker 2 (31:13):
Can you get a bit of right elsewhere? Guy? Or
you actually quite like the deal that your bank's got
apart from the break fee thing, and.
Speaker 5 (31:19):
There were all pretty much as much of a muchness
I think, but yeah, give you some curious Yeah, yeah,
yeah they did offer that, and I was just wondering.
It's sort of banging my head against the break and
ball telling telling them I'm not doing your break fee.
You've waved a break fee and give me the cash back, thanks,
and we'll stick with you.
Speaker 2 (31:39):
Yeah. So so hong on they're giving you, they're often
you cash back and charging a break fee. So does
it cancel out?
Speaker 5 (31:48):
And I'm getting the impressive he sold that. Yeah, it's
going to camp Lea. It might be a little bit
more cash back. But I was just curious about the
break fees, like, yeah, well mortgage of ide is negotiate
them saying that I will waive the breakthree thanks. So
I think, yeah, as.
Speaker 3 (32:05):
Long as as long as it cancels each other out
and you're no worse off, then you might just have
to suck that one up. If you went to another bank,
you're going to pay the break fee and get the
cash back as well and pay some legal fees for
the move, so you might be worse off. So if
you can, if you make it work with staying with
the bank, then.
Speaker 2 (32:20):
Good luck, Okay, good on. So well, I mean I'm
reading between the lines. I think, Okay, you're getting some
cash back, you're getting a break fee, no harm, no foul.
I just probably just go along with it, wouldn't you.
I think that's what I'm detecting.
Speaker 3 (32:36):
Yeah, yeah, I agree if you were, if you were
paying a break fee and not getting a cash back,
then I'd be pushing your point on that.
Speaker 2 (32:41):
Is it actually just the bank's process that they that
they have to present it that way. Of course. Imagine
I'm wondering if they just said, look, if you transfer
your lending to these new entities, look, it's not going
to cost you anything, as opposed to them saying we're
going to give you some cash back, but we're going
(33:02):
to charge you a great break fee. I have a
suspicion that if they said to go, look, we're happy
to work this all out and we're just restructure it
and all done. But because they mentioned fees, break fees
and cash bonuses, it's made them go, what what's this
about a break fee?
Speaker 3 (33:18):
Yeah, yeah, definitely part of that. It could also be
it could have been presented away where the assumption as
being made that the client wants to break their loan
and start on the lower rates, wants to reduce their rate,
therefore there has to be a break fee. But actually,
in reality what may happen is they might be happy
to stick on the current rates and terms, and that
just hasn't been communicated.
Speaker 2 (33:36):
Yeah, would there be an option there? I mean, it's
difficult to know, of course, But if they're keeping their
existing lending and they're doing a look through company, obviously
they're setting it up as some investment where they could
just continue with what they've got and just take a
new loan out at another bank, I guess for the
new house, which they could do.
Speaker 3 (33:55):
But well, it sounds like the house the set is
only one house here. Oh, it's just being shifted from
their joint names into their company, into a new company.
Speaker 2 (34:02):
And I thought they were I thought they were buying
another house but sticking the existing one until look through company.
But anyway, we don't know because he's gone. Actually, boy,
we've almost tooked ourselves out because we haven't got much
time to go before we have to come back with
the property of the week. So might do a few
texts and we'll have to leave that discussion around the rates. Oh, actually,
I get your take on it. Would you haggle your
(34:24):
rates down for the or is it about does the
rates valuation? People tell me all the time rates council
valuations are meaningless? So should you haggle your value of
your property down for a cheaper rates bill like lux
and did?
Speaker 3 (34:37):
I probably come back to what you your mate said
when you did it that if you're looking if you
have plans to sell within the next few years, I'd
probably think twice about that, Yeah, because potential buyers look
at it. If you've got no plans to do that
in the next few years and it's kind of reset
itself at that point anyway, then then you'd probably be
in support of the decision. It doesn't impeat your borrowing.
(35:00):
Gone are the days where banks have really looked at
the CV to lend the against. These days they have
other systems that are decided on the property's worth.
Speaker 2 (35:09):
Another text Camson it comes in on the bank breaking fees.
It says it's important to note the bank brack fee
has to be their genuine cost. They can't make money
out of it. Well, that makes sense, doesn't it?
Speaker 3 (35:18):
Absolutely?
Speaker 2 (35:19):
So? It shouldn't just be a tool to keep you,
to keep you there. Hey, look we need to take
a break. We'll come back and just a moment with
the one roof properly of the week. It is twelve
minutes to five news talks.
Speaker 1 (35:29):
He'd be the one roof property of the week on
the weekend collective.
Speaker 2 (35:35):
Yes, so one with probably of the week. Actually, it's funny.
I was just discussing the one we had last week,
which we weren't too keen on, but I am quite
keen on this one. And in terms of affordability and
what you're getting, it does look fairly affordable. I'm quite
surprised it is. The address is five unit, five Dash
twenty nine Saint Benedict Street, eden Terrace, Auckland City. It's
(35:59):
it's okay. It's two bedrooms and two bathrooms, two parking spaces,
which I think is a big plus. The houses a
hundred and sixty seven square meters. It is built basically
over a century ago, in nineteen fifteen. But it's described
as I'll read the blurb for it briefly. It says
it's an urban sanctuary of unparalleled scale and character, tucked
away in a boutique warehouse conversion of just five residences.
(36:21):
It's too close to two hundred square meters apartment basically
described as a hidden gem blending history and elegance. It's
got sowing ceilings, polished concrete, timber floors, exposed brick and
I don't mind telling you I actually am fairly impressed
with this, and I'll throw it to Peter Knowllys Norris.
How would you describe it? Peter?
Speaker 3 (36:43):
Yeah, I would agree with you. I love that two bedroom,
two bathroom meets the affordability criteria and over a million dollars,
but it's.
Speaker 2 (36:53):
I'm so used to reading out things at a seven
or eight million, so.
Speaker 3 (36:56):
Yeah, no, I rely like a really big fan of
the exposed brick. I think the size of it for
a two bedroom, two bathroom, and like you say, a
couple of carp in Central Auckland's pretty attractive.
Speaker 2 (37:08):
I think it's one of those things. I mean, it is,
so if you want to go and check it out.
All the walls are exposed brick, but it wouldn't be
a house you could buy sight unseen. You definitely not
to need to go and have a walk around and
get the vibe for it. But it does look like
in terms of its location, quite a quite a bit
of bang for bucks.
Speaker 3 (37:27):
It am I being, I mean, I'm married with three kids,
so it's not gonna work for me, but if well
as a young couple, I think it's a great, great spot.
Speaker 2 (37:36):
Yeah, so go and check it out on the one Roof,
one Roof website. It is five Dash twenty nine Saint
Benedict's Street. And as I say, the price expectation is well,
this is another one that ties into the conversation we were
sort of going to going to have and we might
still have managed to squeeze a couple more minutes out
of it, where the price that it's estimated as is
(38:00):
one point zero nine even though the r vs one
point three. I can't quite weak that out. What do
you reckon said all about just the markets come off
of it? Or yeah?
Speaker 3 (38:07):
Yeah, I think that demonstrates where the markets at.
Speaker 2 (38:10):
Yeah, maybe they didn't object to their rates as I
should have done. Would you have objected to the rates
if you were lux and he had what's as why
heck he getaways valued at ten mil and he got
it down to seven and has saved himself close to
nine grand and rates.
Speaker 3 (38:25):
Yeah, he's stroking a bit, doesn't he.
Speaker 2 (38:28):
Actually, it's funny. I think it's the lesson is there
that even if you people who have a lot of
money are careful with what money they've got. Because I
was surprised that he bothered. But then again, and it's
eight thousand bucks. I mean that's how many how much
per week? Is that?
Speaker 3 (38:47):
Eight thousand bucks a year? One hundred and fifty bucks
a week?
Speaker 2 (38:49):
Yeah, so he saved that. Would you would you have
quered your rates? Would you ever query your rate bill?
Speaker 3 (38:56):
Yeah?
Speaker 2 (38:56):
I probably would anyway, because you're not thinking going anywhere anytimes?
I guess. Yeah, interesting one, isn't it? Anyway? Unfortunately, didn't
leave really enough time to flog that one out. A
couple of texts here coming and said one person said
that there were some large eerrors in the city rates assessments.
Do you know anything about that? Where there? Actually? Did
(39:17):
they have any glitchers with their database that I'm suffering from?
Speaker 3 (39:20):
Possibly it's all data, to be fair, No, I don't know.
Speaker 2 (39:24):
Okay, anyway, Hey, anyway, if people want to check out
what you do, where do they go for ops? Mortgages?
How do they track you down?
Speaker 3 (39:31):
Peter best place to go to be the Op's mortgages,
Dot Coto and Zen. Do you find everything you need?
Speaker 2 (39:35):
Excellent? Good? Hey, good, thanks for coming on show. You're
going to Auckland f C.
Speaker 3 (39:38):
Now, yeah, absolutely, off there now, it'll be a little
bit late, probably about twenty minutes late.
Speaker 2 (39:41):
I see you've got the track toop on there is
there is there a blue jersey or what do they
call it? The strip.
Speaker 3 (39:51):
As well?
Speaker 2 (39:51):
Yeah, yeah, and I guess that all comes off if
you score a goal.
Speaker 3 (39:54):
Yeah, that's the Phoenix, not us.
Speaker 2 (39:57):
It's only the Phoenix that take their shirts off.
Speaker 3 (39:59):
Yeah, that's right.
Speaker 2 (40:00):
There is something a little bit more refined about you guys. Anyway,
he's hoping that Auckland C ever have a right start
their game and season as well. We'll be chatting about that,
by the way on the Sports Rat with Nathan Limb,
which will be at quarter to six, of course, but
the game is due to start off and kick off
in a few minutes, so Peter's going to sprint catches
Uber and head to the game and we'll be back
(40:21):
shortly with the parents squad. Catherine Burketts with us talking
about whether you should stay together for the safety kids
or maybe the other question is should you split up
for the safety of kids, which is some of the
comments we had in the newsroom about that as well.
Eight hundred and eighty ten to eighty will be. The
number is three and a half minutes to five.
Speaker 1 (40:55):
For more from the Weekend Collective, listen live to news
Talk Said Be weekends from three pm, or follow the
podcast on iHeartRadio.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
The Breakfast Club
The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy, Jess Hilarious, And Charlamagne Tha God!