Discover the keys to slashing years off your mortgage and laugh off the shackles of debt with your hosts Zeke and Oscar. This episode is a treasure trove of wisdom straight from the sun-kissed shores of Perth, embodying the city's splendor and the sheer bliss of financial liberation. We're dishing out anecdotes and shrewd advice that could see you bidding farewell to your home loan sooner than you thought possible. Whether you're a first-time buyer teetering on the precipice of homeownership or an old hand at the mortgage game feeling the squeeze of rising interest rates, we've got your back with tactics to tackle that towering principal and strategies to withstand the buffeting winds of economic change.
Buckle up for a journey through the fiscal wilderness, where we unveil the art of prudent budgeting and the importance of knowing just what you can truly afford. We'll show you how to stress-test your finances before taking the plunge and how a simple exercise could spell the difference between a dream home and a financial nightmare. For those already in the grips of a mortgage, we lay out actionable steps to pump more money into your loan and reveal why this seemingly straightforward move is a game-changer. So, turn up the volume and join us, Zeke and Oscar, as we guide you through the twists and turns of the home loan landscape, all the while keeping spirits high and the conversations light.
For any enquiries or to connect with Oscar, Zeke, or their company, Asset Road, listeners can visit the following links:
The advice shared on The Finance Bible is general in nature and does not consider your individual circumstances. The Finance Bible exists purely for educational / entertainment purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs
Discover the keys to slashing years off your mortgage and laugh off the shackles of debt with your hosts Zeke and Oscar. This episode is a treasure trove of wisdom straight from the sun-kissed shores of Perth, embodying the city's splendor and the sheer bliss of financial liberation. We're dishing out anecdotes and shrewd advice that could see you bidding farewell to your home loan sooner than you thought possible. Whether you're a first-time buyer teetering on the precipice of homeownership or an old hand at the mortgage game feeling the squeeze of rising interest rates, we've got your back with tactics to tackle that towering principal and strategies to withstand the buffeting winds of economic change.
Buckle up for a journey through the fiscal wilderness, where we unveil the art of prudent budgeting and the importance of knowing just what you can truly afford. We'll show you how to stress-test your finances before taking the plunge and how a simple exercise could spell the difference between a dream home and a financial nightmare. For those already in the grips of a mortgage, we lay out actionable steps to pump more money into your loan and reveal why this seemingly straightforward move is a game-changer. So, turn up the volume and join us, Zeke and Oscar, as we guide you through the twists and turns of the home loan landscape, all the while keeping spirits high and the conversations light.
For any enquiries or to connect with Oscar, Zeke, or their company, Asset Road, listeners can visit the following links:
The advice shared on The Finance Bible is general in nature and does not consider your individual circumstances. The Finance Bible exists purely for educational / entertainment purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs
Oscar Don & Zeke Guenthroth:
Welcome back to another episode of the Finance Bible Podcast. Zeke here and your co-host, oscar, but before we get into it, please note that nothing in this podcast should ever be considered as personal financial advice. Of course, if that is what you are seeking, reach out. We'll get you in touch with the correct professionals. Get the job done properly, sit back, relax and enjoy the show. Let's get into it and welcome back to another Finance Bible Podcast. I am your co-host, oscar Don joined alongside me. Zeke Goontroth, mate, as we always ask, how are you? Thanks for raising that question, mate. I'm very well, very well, thank you. We're currently in sunny, sunny Perth, beautiful day, just overlooking Opda Stadium, actually, at the moment, and a couple of churches yeah, looking at Opda Stadium. That brings me back to, I think, the 2021 final series. When the pies flew over the Perth and actually beat him by one point, it was any Perth locals or West Coast fans. We'll remember that.
Oscar Don & Zeke Guenthroth:
I don't want to talk about the 2018 granny, but look, today we are talking about how to save years off your home loan, your mortgage, the debt that's tied around your neck. You know a lot of people spend 30 odd years paying a bad boy off, generally struggling for a good 30 years to meet repayments and it's probably a great time to actually talk about it, due to last six to 12 months of continuation of the interest rates just going up and up and up. Right now, the on hold, which is great, but a lot of people will be feeling the pinch, I completely agree. I think, before we get too far into it, the best way to do what the point of this podcast episode is, which is pay off your mortgage quicker or save money on your mortgage, the best way to do it is to not be in the situation in the first place. Run the numbers and what you can afford before you do it. You're going for a loan. Take into account the interest rates might go up 1%, sit there and calculate how much you can actually afford to pay on the mortgage and figure out.
Oscar Don & Zeke Guenthroth:
Should I really be doing this? Should I take this step? Do I really need to get the property that's got the one extra bedroom and the highest ceilings and the ducted aircon, or do I need to take a step back and go Sad times? I shouldn't do that. Well, that's a good point, actually, because I'm a firm believer of well. For example, first time I moved out. Before I moved out, because I had never paid rent before, I put a bit of money in a rent account for my paycheck each week just to replicate. You know, can I live off this income when I'm renting, even though I hadn't actually gone into a new house yet? So I was putting away what my repayments would be to see if I could make the repayments and continue living life. So if you are wanting to purchase a home and you can get a rough idea of what the monthly repayments would be, just make it up for a couple months.
Oscar Don & Zeke Guenthroth:
Pretend you've actually got a mortgage and you're putting money away to it. If you're really struggling, obviously that's the answer for you. It's not the right time to do it or look for something cheaper or smaller. But if you're fine with it, that will be an option you can talk about with your broker or whatever. But it's a good place to start Because it's not something you can just jump into and if you're struggling, just jump straight out.
Oscar Don & Zeke Guenthroth:
Like majority of the time you lose money for debt straight away. But it's a 30 year commitment at least, solution number one. So once you're in the position you're in, you realise that hey, it's probably not great. So what can I do? So we're saying you've purchased the property, you have the home, you've got the mortgage. There is a noose? All right, you've got the one. What more money into it? Very simple, probably sounds like the dumbest thing you ever heard. You come in listening to a finance podcast and you're like what more money in your mortgage to save money? I know ridiculous, it is very safari. But if you put just a little bit more money into it let's say $100 a week, something pretty casual it's going to make a fair impact.
Oscar Don & Zeke Guenthroth:
Here we go, as he's bringing up the Westpac home loan repayment calculator, your best friend Mate. You guys know I love calculations. I like to bring you statistics and give you black and white facts that are correct. So $610 grand is the average loan size in Australia at the moment from every state combined, including Tasmania, northern Territory and other states. Some states have actually had a reduction in the last 12 months of their overall mortgage size, but $610 grand is now the average. If you were throwing the average interest rate as well at the moment, which is 6.84%, I think last time we did, this podcast is around the mid threes yeah, it would have been. I think we said it's like 3.6 or 7. Yeah, it would have about doubled since then. That does that up, but anyway, 6.84% currently is the average. If you are paying that over 30 years, we're pretty sure you're going to be paying a fair chunk of interest and I'm pretty sure that all of you guys would agree with that.
Oscar Don & Zeke Guenthroth:
Overall, if you just threw an extra $100 in per week, which is $400 a month, you save seven whole years off that mortgage and $225,000 in interest. Just from $100 a week, you can save $230 grand over a mortgage. It's seven years a long time to save as well. That's a long time, mate. In seven years. Pop it up to $200 a week. Pop it up to $200 a week. Like that. 11 years, 350k give or take.
Oscar Don & Zeke Guenthroth:
I like that and you can make, if you're struggling to make that money, bit of Uber Eats Door Dash, sell some things on Marketplace. You can always make money with things lying around your home. There's always ways. Yeah, if you just simply go all right, I want to save 11 years off my mortgage and I want to save $347,000 off my mortgage, I'm sure you could find a way in a week, or most people. Some of you might not be able to. But most people could probably find a way to make an extra $200 a week, whether it be four hours, five hours of doing Door Dash for two or three days a week, or Menu Log or Uber Eats, or if your employer is a casual, they could be picking up an extra four hours of work or something per week and throwing that at it, and you don't actually have to throw it straight onto the mortgage and completely try to pay that off ASAP. You could whack it in an offset account and reduce the amount of interest you pay. If you throw that amount onto the offset account, then that will take off the amount of money that you actually have to pay in terms of interest. So that could be a good solution. Very alarming.
Oscar Don & Zeke Guenthroth:
It's a very simple tool to use. If you do have a home loan, it's probably a good actually to play around with it and figure out what you can afford and what you may not be able to. Try and figure out also what you can pay off in terms of years from your mortgage. Another important one, let's say point number two, is if you haven't spoken to your lender or your broker for a while, maybe it's time to refinance. So we did talk about in our most recent episode I think it was the interest rate scenario, I think that was the name of it about talking to the lenders and your brokers to look at ways if there is an option to reduce your interest rate, because all you got to do is pick up your phone, call up your lender and ask for a review on your current rate, generally speaking, every 12 months. They do this for you. You can also try your luck if you've already done it in 12 months and try it a little bit sooner. But if you don't ask, you don't get it simple enough. Even if you went through a broker, give your broker a call if they haven't spoken to you about it, and ask them if they could request a possible review of your current interest rate.
Oscar Don & Zeke Guenthroth:
On that note, we did do a couple of recent podcasts which you just mentioned. There there was the interest rates and army and there was great why you should talk to mortgage brokers as well. I think yeah, I think it was the yeah, the six reasons you should use mortgage broker. Yes, well, there you go. You're the specificity. Yes, there we go. On those episodes we do talk about exactly how to go ahead and do that whole refinance scenario and what that involves and how simple it really is to save money.
Oscar Don & Zeke Guenthroth:
The next one is with your offset account or with repaying the mortgage, two other things that you can do. There is when you get your tax refund at the end of the year. If you get a tax refund that is not everyone does you can throw that onto the mortgage or onto the offset. And if you're just trying to save money and put it towards it a recent episode on saving tips that we did as well. There's a lot of recent resources which will actually help with this episode. Yeah, very, very simple. Go ahead and listen to five to 10 of our last episodes and you should be able to figure it out for yourself from there.
Oscar Don & Zeke Guenthroth:
But the other question is while all this is going on, what do you do at the end of that time? You've saved the 11 years on the mortgage, like we just showed you the example. You saved $350,000 on interest repayments $350,000. One more time $350,000. $350,000, baby, so good. What do you do then? Well, I know that if I saved $350,000, I'd be buying an investment property, probably where I am right now, and so think about that. Take the steps talked about in this episode today. I think that's it Short, simple. Hopefully. Help some of you out there Quickly before we do head off.
Oscar Don & Zeke Guenthroth:
One more tip I'd say, which I actually know a couple of family friends who have done this, in terms of they've gone down the path of buying a house, which probably, on the higher side, they can afford, but they've looked at actually renting out one of their rooms. True, which is very smart. If you're okay with having people living with you, ideally it's friends or family that you know, but sometimes people may prefer just strangers who have no idea. I'd prefer a complete random. Yeah well, there you go. So there's an issue. See, mate, there you go. So I'd prefer a friend, but everyone's different. But that's one way as well to help you help with the extra payments. So, other than that, I think, go through all the other resources. Every episode has distinct steps of how to actually help the mortgage broken or the interest rates, refinancing, all that. But investing in property is quite a big one as well to help you save a lot of years.
Oscar Don & Zeke Guenthroth:
We have done a few episodes on the actual properties as well. If anything that we've said on this particular episode or any episode in the past does not make sense or you need a further explanation. Although something not quite. Adding up one plus one is an equaling two. Then flick us a message, jump into our DMs and let us know we're happy to expand on everything. We just try to bring you quick, easy, simple content to make your lives easy. We'll see you all next time. See you then, ciao.