Good morning, everyone, and welcome back to another episode of Sugar Mumma's Fireplay. I am your host's financial planner, Canna Campbell, and today I want to waste no time at all because we're talking about your mortgage, and we're going to talk about seven different ideas for you to apply right now today for your mortgage so that you can save valuable time and money. And I'm not talking about small
dollars here or silly amounts of time. I'm talking tens, if not maybe hundreds of thousands of dollars and shaving years off your home loan. This is something I'm really serious about you understanding how your mortgage works and the things that you can actually do that are really not that hard to save you so much time and money. And of course, the moment that mortgage is paid off, woohoo, there are so many other tools that we can start
playing with to build wealth outside of your home. Of course, now to help us break down all these ideas, these very powerful ideas, these practical ideas, these simple ideas, I am joined by John Micklzzi from blue Land and Financial Services. As you know, we've previously had Adam McCabe in the studio plenty of and I decided to mix things up because Blue Lantern is actually who I recommend for mortgage brokers.
I get zero benefit from doing this. I'm just happy to share contacts of people that I know and trust, but more importantly, people that I have worked with for tens of years and actually do my own personal mortgage broking and investment loans, as well as my family members and all of my friends. So if at any time you think you know what, I need to speak to
these guys. They sound really good. They are, and of course I will link all the contact details in the podcast notes so you can quickly and easily connect with them whenever you feel ready. Now a quick reminder, of course, all of these podcasts are general in nature and for educational purposes only. All right, now that we've got that important compliance requirement out of the way, let's hit the ground running. John, good morning. Thank you for coming into
the studio and to talk about this. And I'm so serious about Australian's realing what they can do with their home loans to actually get the monkey off their back. Do you agree that we need to be paying more attention to our homelands?
Absolutely? And I could not agree with you more, Kenna.
We have a great calculator on the sugar Mumba website. It's an extra repayment calculator at a combined lumpsung. You just simply plug in your details and see what an extra fifty dollars per month, plus say an extra thousand dollars bonus each year on your homelan doesn't see the term drop and see the amount of savings add up. And of course that's subject to interest rates remaining the same and of course making sure you don't draw that
money back out again. But you have a choice, and you really can actually pay off the whole mortgage so much faster. You are not dictated by the bank or your lender. But look, let's get cracking because we've got seven ideas that we want to break down together as to how to pay off your home loan off as quickly as possible. Before we begin, I'm just sorry, I
just don't want to hit the gray money. Can you just give everyone the quick introductionist to who you are, because obviously everyone's used to hearing Adam on the show. Can you explain to everyone what you do and how you fit in at Blue Lantern.
Sure, So there's a few brokers at Lantern. I'm Johnny.
Let's see on one of the team, and so we bread the workout evenly between the team, depending on a speciality, depending on who's available, depending on you know, where that client has come from. So there's always good coverage for anyone that wants to come and have a chat with us, do a mortgage health check, get ready for a purchase.
So briefly, that's my work splits into two. So it's either helping people purchase the property, but then importantly staying with them after that, you know, working with them through the life of the loan to ensure that you know, they are trying to minimize interest costs and they are getting to total home ownership or at least comfortable levels of debt as soon as possible.
That ongoing service is completely underestimated. And I say that because I know how much I rely on Blue Land and to review my home loan, to call the bank on my behalf and negotiate a better interest rate, you know, when it's time to refinance, because the bank won't match what they're paying new customers or what the competitive rate is.
And that guidance as to how to actually structure the loans in the right way, because there are lots of ways to pay your home loft and lots of different ways that suit different people in different situations or different periods of their lives. So that ongoing service is actually free, isn't it.
That's exactly right, And I'll go into more detail about this later.
Because of our business model, not all brokes are the same.
We are compelled, you know, to look after you and to give you options and to make sure that everything's working well for you. And this is no disrespect to banks because obviously we do source funding from banks. We've work with them, we work with them, but they are not compelled to do anything. They only have to explain their products and services.
That's it.
Look for anyone who is a mortgage right now, they've never had any ongoing relationship in helping power their bank. Can this be your sign to pick up the phone and find a good quality mortgage broker that's going to work with you. And you know, the way I would describe what you guys do is you're almost like a coach.
And look, Adam has always done our home loans and investment loans, and I have him on speed dial, and it makes it makes the difference because you do make greater inroads and you make better progress and you tick those goals off. So all right, let's get started. Number one. The first thing to do, and when it comes to trying to pay for your home loan as quickly as possible is to do a budget. But can you explain why and how effective this is?
Certainly, so to try and determine, okay, where could you make savings and where can you make inroads? You've got to understand what your current expenditure is and try to categorize it. To think about categories such as your mortgagey payments. Obviously that's the first start, but then things like utilities, rates, insurances, communications, expenditure, so those things that you might think, okay, well they're
sort of fixed in nature. And then there's other categories such as groceries, eating out, recreation, entertainment, which are more discretionary, right.
And't mentalize these expenses exactly, so you can sort of focus purely on looking at the utilities expenses, the gas, electricity, the water, see what you can't really do too much with. And then obviously look at the groceries, alcohol, you know, those other inns absolutely which are more volatile or fluctuate.
Yeah.
So I have people who say, oh, you know, my credit card bill is three thousand dollars a month, so that's my expenses. But that's just to have one number. It's hard to make inroads into it unless you break down that number and see, okay, where can I perhaps improve what can't be improved, So.
You've got to do a deep dive. Yes, I completely agree. Now, you and I were chatting on the phone and we were talking about this thing called bank statements dot com and you've given me example, and I have to say it's quite fascinating because it basically is a software system that breaks down and does all that. It's almost like an AI of budgeting because it breaks down, it compartmentalizes everything for you so you don't need to do it yourself.
So then you can then look at each individual category and see what needs to be cut down or cut out. Can you explain how you use this to help clients and also how does someone get their hands on this, because it's extremely helpful.
So when I do a mortgage, health check, or a brief finance or even a purchase. Part of that process is understanding living expenses. And then when it comes to getting data from people, so for example, credit card statements, personal loan statements, home loan statements, we have this service whereby it's automated, it's secure, where the statements come directly to us. And then importantly with that comes an analysis
of expenses. Okay, And that's important because someone might say, oh, yeah, we spend you know, three hundred dollars on recreation and entertainment. Then the data says, well, it's one thousand dollars, right, and there's no wrong or right answer. But then it's a conversation to say, do you want to limit your recreation attainment to three hundred or is it actually one thousand dollars a month?
And you don't want that to change?
Okay, So that's just a conversations awareness.
It creates awareness.
You hear stories in the media about, you know, the bank look through my expenses and they questioned why I was going to McDonald's every week.
I don't care. You know, maybe invite me longto McDonald's. I don't know. But it's not a deep dive.
I don't go into what you're spending on where it's more the headline numbers. If you want to, if you want the data to go in and perhaps look where you can improve, fine, I'll give it to you. But it's not a deep dive exercise for me into too far down. And there's no judgment in the process at all.
Oh gosh. I mean you and I both know there's no judgment where it comes to people's personal finances. You know, everyone has their own personal value system, and for us, at really the end of the days, we're there to help. So if someone comes from saying we need help, we'll look at it with a view to help, not to of you to judge. And I mean, look, I've got an example in front of you right now that you've given me, and I have to say it's brilliant because
immediately my eye went to certain expenses. I was like, oh wow, you know you could actually make an extra eighty dollars per month for repayment just by looking at this one particular expense. It really does break it down. So I mean, I'll put for everyone that's listening right now, obviously John's contact details, but I believe you're happy to give some people access.
To this as part of a mortgage health check.
As part of the mortgage health check. So, I mean, what a brilliant opportunity for everyone to get a great refresh of their budget through this amazing service and get some help from you. So all right, Realistically, people think, oh, a budget, it's like doing going to the dentist. You don't want to do it, you procrastinate. But the smallest savings, this particularly a regular basis on a mortgage, can actually
save you thousands of dollars exactly. Can you give us a couple of realistic examples to how much you know, some you know, say one hundred and fifty dollars per month that you might find from your budget when applied to making an extra repayment on your homeland. How much really are we talking about? Because I feel like when people hear that how much, they'll say they'll want to
go do their budget immediately. So can you give us an example, a realistic example as to how much someone can save from a time point of view and from an interest point of view by doing their budget and fighting say an extra hundred dollars or extra fifty dollars or an extra hundred and fifty dollars per month that they can apply to their homelan.
Sure.
I call it the power of small amounts of money, and it shouldn't be sneezed at. So I will do it on an annual basis. So that way, maybe that's even that's more achievable for someone. If someone puts a thousand dollars extra on their home loaner per year, yeah, per year, right, that thousand dollars saves five thousand dollars in interest.
Wow, so that's not even one hundred dollars per month, that's right. What are we using as an average mortgage size here?
So that's for a five hundred thousand dollars average mortgage size. Even up to eight point fifty, the saving is a little bit more. But just think in rough terms, one thousand dollars on five thousand dollars off in interest.
That is amazing.
And what's the average interest rate you're using that I'm using six point one five.
Six point one five, okay, so that's a pretty competitive rate. That's computer greedy in these numbers. So essentially it's like that one thousand dollars savings gives you back an additional four thousand dollars in total, that's.
Right, and the average time, so think about it takes two to three months off your loan.
Wow.
Okay, so then again you do that every year, and then you're starting to get into not months, but potentially years at the end of the mortgage.
Well if you feel most people are on a thirty year mortgage. So if it's shaving two months off each time you do this, it adds up very very quickly. And also, as I said, like, that's what eight hundred and eighty dollars a month extra pay, not even twenty dollars a week, that's right. And if that is not a bigger motivation to go and do a budget or get a health check done by you and get an AI program to do your budget, I don't know what is all right? Next idea, let's talk about redraw facilities
and offset accounts. Okay, how do they work? And how can I everyone listening right now use that to their advantage to save tens of thousand dollars for their homeland.
Sure, so whether you use a redrawal facility or offset it has the same effect that simple.
Okay, Can we explain the difference for everyone right now between the two.
So that one thousand dollars we're talking about, you can pay that off your loan right and then if it has a redraw of facility, you can get that back if you need it.
The discipline is not not getting touched. It's not to.
Touch it, okay, but at least whilst it's in there, it's saving you money. So you will literally see if you put one thousand dollars in, if your mortgage is eight fifty, it will come down to eight forty nine, okay, So you will see the difference.
And you'll low to be charged the interest on the eight four nine exactly exactly.
Cotant part exactly.
Now, if you put one thousand dollars in an offset account, same thing, same effect, So that.
Since they're almost looking like savings in the offset account, that's right, like it literally looks like an online savings account, that's right link to all you accounts, but it's actually offsetting the interest. So instead of the bank charging you interest on eight hundred and fifty thousand, it's charging your interests on eight hundred and forty nine exactly, okay, exactly out of interest. Which do you prefer?
I prefer offset accounts? Personal choice just like the flexibility of having the money there. And also there are investment properties in play, and therefore I don't want to put money on the loan because I need the funds, and I don't because once you put money on into investment loan, you can't redraw it back without affecting your accounting.
Can you give us an example of, you know, for example, emergency money. I tell everybody you need to have emergency money, and you need to have the right emergency money. And I say to people, you know, if you can keep your emergency money in either your offset account or a redraw facility, how much does that save people in time
and money? Using those same examples of say it, I think a six to fifty mortgage, or sorry, five hundred thousand dollar mortgage, an eight hundred thousand dollars mortgage.
Okay, So let's use the figure of ten thousand dollars. Okay.
So let's just say you have been able to save ten thousand dollars and that's your emergency funds, yes, okay, And let's say you put them in an offset account.
Okay. So on an eight fifty loan.
The savings are over the life of the loan, fifty one thousand dollars will be paid nine months.
Earlier, assuming you don't take my emergency money out. Yes, that is huge, fifty one thousand dollars. So just in our first two tips alone, you know we've saved what five thousand dollars by making an extra one thousand dollars zero in payments each year yep, and then an extra fifty one thousand dollars by using a redraw facility or
an offset account. Anyone that's listening to this episode right now that has emergency money sitting in an online savings account that's not connected to your home loan, please consider getting some advice, obviously from John or from you know, your own mortgage broker, about the best way to structure is look into a redraw facility or an offset account. And most of these facilities are free. They're part of your loan package anyway.
Some banks charge a package fee. Some banks don't charge a package fee at all, but they still give you an offset account. Then you can get really creative. Some people,
rightly or wrongly, they may not have the discipline. They may have a certain way of banking, and for those clients, if everything else matches up, for them, I suggest a lender that has multiple offset accounts, so they can have one account for the emergency funds where they don't have to touch where it's they don't have to do the everyday banking, and then they have other accounts that they
use for every day banking. And on that basis, that's excellent because every dollar in every account every day is offsetting against the loan.
This is a little insight. My preference is actually a redraw facility, So our emergency money systs in a redraw facility. I actually just checked it this morning and it's slowly getting back up there again. But we do have multiple offset accounts for our other smaller goals, like we're saving up to renovate our kitchen, we are saving up to take the kids skiing overseas in June, So we have those little smaller accounts bubbling away that are at least
offsetting the interest on other loans as well. So it really is that combination is equally as powerful, but incredibly effective and in saving you all the time. And I love as a great source of motivation is that when we pay our mortgage, I think around the twenty six of every month and a couple ofdays later, I'll log into my intet banking and look at the interest repayment dropping and seeing that we're making a bigger, better progress with that deduction.
Everyone has their own motivation. I think it's important to find your own motivation. Everyone has their own personal preferences. Yeah, I've used redrawer in the past for different reasons. As again, it's just my that's my personal preference, and it's about finding what works works for you.
All right, let's keep these savings bubbling long for our listeners. So number three making ad hoc repayments. So you know a lot, I know everyone's on a really tape budget. They're like, where are we going to come up with some extra ad hoc money? Well, you know, taking on extra work. Perhaps you might get a tax refund. You know, you might do a side hustle, you might declutter your home. You know, gosh, my kids stayed to outgrow. They're all
going through gross spurts. And I've got so many things that I could just list onto gum Tree or Facebook marketplace. You know, even just an extra like one thousand dollars can have an incredible effect. So we just quickly talk about the power of ad hoc repayments.
Yeah, so ad hoc repayments I think, if they can be achieved, you know, are excellent because that's where you really start eating into your mortgage.
Right. The savings tips, yeah, they can be done.
But the extra the ad hoc then again, you know we're getting back to that. If you can find a thousand dollars savings, and even if you find that extra thousand dollars in income or cash or or whatever, again, every one thousand dollars is a five thousand dollars saving.
Wow. Did you know that the average Australian gets back about two and a half thousand dollars per annum as a tax return.
No, I was not aware of that.
So if we were to insteader of put one thousand dollars onto the homelan, we put two and a half thousand dollars, or even to say, let's say we take put two thousand on the home loan and keep five hundred for ourselves to keep a bit of you know, I guess financial flow in our lives. I mean those
savings multiply. It's not just doubling it. It actually goes for pounds because it's reverse compounding, so that savings is probably more like closer to eleven thousand dollars, and you know you're saving what probably four or five months off the home loan.
Again, that's exactly right, So just think every thousand dollars, think five thousand, and think you know a few months off the home loan, home loan.
One who's listening right now? Can I just do a quick shout out to two very powerful calculators. The one is obviously on the Sugar Mama website. It is my lump Summon extra payment or a calculat where you can actually combine the two of increasing your mortgage payments after doing a budget and making those extra ad hoc repayments, you can see how the combination of the two how
much time and money they save you. And then of course heading over to the Blue Lantern Financial Services website because you have a rainbow of calculators that everyone can use that actually demonstrate how much more money you can save, and they're a really great source of motivation and empowerment to really look at realistically paying off your mortgage as soon as as possible. But it's not unrealistick to drop
your mortgage. I think from thirty years down to twenty five years if you apply some of these principles we're talking right now, would you agree with that?
Absolutely?
Yeah? All right. Next one, this is a really important one because we all get very lazy and overwhelmed, and that is shopping around for a better deal. Why do you think we get do this? Like, I mean, I just sort of answered the question of myself in my personal opinion, But why do we just think assume that we're on the best rate.
I think apherently people want to think pop and they'd like to think, yeah, sure, I'm sure that the bank, wonderful institution or the lender is looking after me, and I'm confident.
Give loyalty exactly exactly.
So there's that and two people you know have a life and they think that it's boring. They think that it's hard work to check in with their finances and sometimes also it can be confronting as well. So putting all that together, that's why people perhaps don't look at it as much as they should. You don't have to go crazy, you don't have to look at it every week.
That might be a bit too much. But I've had clients who you can tell that they haven't really focused on their finances for good two to three years, and that's two to three years of interest that paid overs for so and.
It's funny, it's not until you do it, you know, you realize, wow, I should have done this a long time ago. I've wasted so much money and time and it was really not that hard. And we'll come back to that process, all right, shopping around for a better deal. Do people really save money when they do this? You know, is the time and the effort really worth it.
I think the first thing to do is do your own mortgage health check and go to your existing lender and see if they'll come to the party with a better rate. And then there's no there's really no work involved at all. Right, if you're dealing direct with the bank, you'll have to do that yourself. You have to wait thirty minutes on the one, three hundred numbers or whatever. If it's with US, we have software and systems that
get you those discounts without you doing anything. Okay, So if you're still dealing direct with a bank, just just know that seventy percent of loans are done through brokers in Australia, So ask yourself why are you the three out of ten people in Australia that are still going direct to a bank.
Okay, all right, let's talk about the savings now. You know, even things like saving on an annual feed that can be really beneficial as well. If you can negotiate like that getting a twenty five basis points off your homeland. People might think, O, well, that's hardly anything. But how does that play out on the cash flow and how does that pay out on paying off your home loan faster?
Well? Can I answer that with an example?
I love that?
Think Okay, So I had.
Clients who I got them their wonderful fixed rate, and you know, unfortunately we're all coming off those wonderful fixed rates. The lender, though with they offered them a decent rate, but they said, look, can we do better? And I said, yeah, I think you can. And so I was able to
get them a better rate. And at that time that lender was offering no annual package fee, multiple offset accounts, so their savings were including all of that were one hundred and twelve dollars per month, and that over the life of the loan, that will save them forty seven thousand dollars Wow.
Oh my goodness, they must have been cheering.
They're not those sort of people. Maybe they just didn't want to show me or internally they were cheering. Yeah, but they were very happy, very happy.
And it's huge. About forty seven thousand dollars is a lot of money, and that money can be then used for other valuable things in their lives.
Yeah.
Well, I'd help them build their new house, so you know, every dollar was important. They still had a few things to finish off. But also the addition to that is they're very disciplined and they are people who do like to have different buckets of money in different account They've averaged around twelve thousand dollars savings across their multiple offset accounts, so that save an addition another forty five thousand dollars in interest over the life of the loan.
On top of the forty seven the top of the forty seven, So this is close to one hundred thousand dollars in interest, that's right, being saved by getting vrasal advice from a mortgage broker that they let's be honest, they probably wouldn't have gotten necessarily from the bank.
Well, they wouldn't know that that offer was out there, Yeah, they wouldn't know.
Yeah, my goodness. All right, So okay, these savings are just compounding. All right. Let's move on to this concept which I've seen a lot on social media and I'm sort of on the fence with. But it's the concept of paying your mortgage weekly instead of fortnightly or monthly. What are your thoughts on this?
Okay?
Well, again, it's a it's all the pair of small amounts of money. It doesn't make that big a difference. So if you pay weekly on a five hundred thousand dollars mortgage, the saving over the whole life of the loan is seven hundred and forty eight dollars, okay, And then on eight fifty thousand dollars loan, the saving is one two hundred and seventy one dollars right over the life of the loan, So that we're not getting those that those big numbers that we're getting with the other ideas.
But again, if you do that in addition to everything else, then it's all better off in your pocket than someone else's exactly.
So just making sure that you consistently stick to it.
And there's another point on the weekly is that some people. We go back to the importance of budgeting. Some people just can work a budget better weekly rather than monthly, so again that might tie in with that as well, So that's an important point too.
I completely agree with that. I run a budget and cash flow academy program teaching people how to do a budget, but how to stick to it. And you know, part of the sticking to it is actually building the cash flow system. And I say to people the key to making your budget easy to stick to is to make
it consistent. So as many bills that you can take that are irregular or even add hoc and make them weekly for that le or monthly, the easier it is to manage your cash flow and therefore stick to the budget.
The only reason why I sit on the fence a bit with paying weekly versus monthly is if you're being paid monthly, it can be a bit of a bit off with the way the payday cycles fall if it's coming out every Thursday, because they maybe five thursdays, you know in your pay cycle, but you haven't been paid yet and you can sort of run short of cash flow. So it does need a lot more meticulous account keeping, and that's where it can sometimes cause havoc for people
with their cash flow. But if you can pay weekly and you have no problem handling that and managing that, absolutely it's something you know definitely worthwhile doing, and those savings add up every single year after year. All right, think that The next one I want to talk to you about is reviewing your progress. I mean, I love the saying what gets monitored gets made. For Tom and I are family, one of our big financial goalses here is to try and make some inroads with our mortgage.
And for me, I know personally and professionally by checking our mortgage on a regular basis, and I probably do it more often than I should, but I know my numbers and I can then see opportunities. Do you agree with this, and what would you recommend people do to help review their mortgage and how can we justify the time to see those savings?
Firstly, just ask yourself some key questions. You know, is the rate that I'm getting the best rate at the moment? Okay, Now, whether you want to answer that yourself, we'll get a broker to help you with that. That's personal preference. Within that then is it worth changing? And there's a question around there around does the loan still still meet your needs? Then, as part of that review process, back to motivation and back to positive I'm a big believer in positive reinforcement.
Is okay, look back, how much extra have you paid on your loan and understand what the benefit of that is. How much have you been able to keep it an offset account, and then understand the benefit, Because if you understand the benefit and the savings, then that should give you motivation to continue doing it.
Yeah, absolutely all right. Then finally talking about the concept of an investment property. This is something you mentioned and I hadn't actually ever thought about this before. How can we include the idea of property and building wealth and save off our home loans at the same time.
So all the ideas we've talked about prior to this one are progressive mortgage management type ideas, whereas if you have the ability to buy an investment property, and if that investment property does a pre ciate with capital growth, then it can be a real game changer. So think about buying an investment property. It could be negatively geared, which means you could get a tax return which then
could go on your personal mortgage. Again, that's something yet to talk to your accountant about a lot of people understand that principle. So again that's giving you that ad hoc more progressive saving. But then the real game changer is in ten twenty years, if that property increases in value, then your strategy could be Okay, I'll realize the profits and have that lump summon, then apply it to my mortgage, and then you could be debt free earlier rather than the twenty five to thirty years.
Wow, that's quite incredible.
So just on that, I had a client who was looking to upgrade, and when I looked at their numbers, I said, look, you can buy your next place and still keep this one because at that time the market wasn't great, so they had a good buying opportunity, but then a selling opportunity in that same market wasn't great. And also the other thing by getting them their new home and keeping their home as an investment property, what that allowed them to do avoid bridging finance, which was
expensive as well. By holding on to one of their properties and then selling it when the market conditions were better, they've been able to pay a further one hundred and twelve thousand dollars off their loan and they're better off by that number compared to if they just upgrade it all in the same market.
Oh my goodness. All right, Okay, so these are fairly complicated strategies. You really do need to get not just advice on, but you need experience absolutely and professional advice.
Absolutely.
I wouldn't be you know, you need to see someone who's a personally. They've done it themselves as mortgage broker has done this multiple times for their clients, and those the intricacies and how to set this up correctly the
first time, the right way exactly. All right, Look, just to quickly recap because this has been I mean, I think we've probably got at least I think if my head, I've worked out aout at least two hundred thousand dollars worth of savings from this one episode off your home loan. If you can apply this straight away, apply it consistently and even dare I say build upon this this time and savings potential explodes. And I've never someone who ever
regretted paying off their home loan sooner and faster. So just to go a quick recap for everyone who was listening to this episode. Number one, please go and do a budget. If you want Joss Bank statement access where you can have his program, look at your budget and look at where you can potentially save money, and of course take him up on that offer for a free mortgage health check. I will be making sure I put John's contact details, both his email address and his phone numbers.
You can pick up the phone and have a conversation with him about your home loan. But promise me this, you will go and do a budget. You will see what extra payments you can and of course jump on the Blue Lanterns website, look at their calculators, look at the sugarmumb calculators and see the impact of those savings, and of course make sure you apply those savings by increasing your automatic mortgage repayments by that exact amount so
that those savings don't get spent elsewhere. Of course number two is to look at a redraw facility or an offset account. What savings do you have floating around an online savings account that would be better off sitting in an offset account or a redraw facility. Again, a good quality mortgage broker will help set this up for you so that this is working to your financial advantage. Number
three is look at ad hoc repayments. I use a very simple example of the average Australian getting about two and a half thousand dollars per year back is a tax refund. You could go and spend that two and a half thousand dollars, or if you wanted to, you could put one thousand or even two thousand onto your
home loan, and the savings really are substantial. As John has just explained, every one thousand dollars put as an ad hoc repayment represents potentially up to five thousand dollars in savings, So it's really literally like almost like a risk free gambling if you like. Of course, Number four is shopping around for a better deal. Do not let yourself become a victim of loyalty tax, Do not get lazy,
do not get complacent, and don't feel overwhelmed. Refinancing is actually very smooth, very simple, and this is why mortgage brokers get paid by the banks because they do all the hard work for you.
Either.
The biggest thing that people say to me when they've spoken to Adam or to Joe or to John is thank you so much. I can't believe how much they were able to save us. We can't believe they feel like they've almost like won the lottery. So shop around for a debt of bill. Please don't ever settle, Please don't ever be complacent about this. I would rather the money be in your pocket rather than the banks, even
though I am a bank shareholder. Number five is to consider if you can weekly repayments instead of fortnightly or monthly. These may seem like small savings, but if you're in a really tight budget and you can't make those extra repayments, you can't make ad hoc repayments. You already have the redoor facilities set up for emergency money and stuff like that. This is a really simple way of not having to find any extra money, but actually being able to save
a lot of money. And again those that interest savings of seven hundred and forty eight dollars per year is substantial, especially over the course of a thirty year loan. And number six is obviously reviewing your mortgage repayments as I have shared with you guys, and I sound a little bit OCD and judge me if you like, but I'm seeing, for once our mortgage coming down at a faster rate I'm seeing our emergency money building up, but what gets
monitored gets made. I would truly believe that it is so exciting when you see the actual cost of your interest repayment getting taken out of the bank slowly reducing. That is true savings in your pocket that hasn't in nuts involved you necessarily having to sacrifice. I haven't had to give up my gym membership or subscriptions or you know, my monthly uber eats by making a simple change in
the way that you manage your cash phone. Of course, I will link in the podcast notes the Sugar Mamma Budget and cash Hood Academy if you want to learn
how to do a budget and stick to it. Number seven is looking at an investment property, and this is obviously not available for absolutely everyone because on everyone has an investment property, but there may be other assets around you that can be sold off, such as a share pot follower and then reorganized into a debt recycling strategy to help you save tens, if not hundreds of thousands of dollars off your home loan and debt recycling strategy
is a very powerful one. I will definitely make more episodes around this, but for the right people at the right time, using the physical the right reasons. Yes, it can save you a substantial amount of money off your home loan, but also allow you to build wealth outside of the family home. So these are really important things that you need to be listening to and thinking about and applying in your life. And of course, if you are feeling stuck, if you are overly overwhelmed, don't use
this as a block and not do anything. Pick up the phone, give John a call, ask him about what he can do for you, give me your details, let him on some numbers. It costs you absolutely nothing, and you have so much to gain, all right, John, Sorry I took a little bit passionate there. Thank you so much for coming on to show I really appreciate it.
This has been such a powerful and valuable list. And there are other things, of course beyond these seven things, but I'll let you share those insights and ideas with people that maybe you perhaps want to reach out and speak to you. If they want to speak to you directly, of course, your contact details will be linked below, including obviously if they want to get access to the bank statements.
Sure so, email or phone either is fine. Text me on the way you know, you know, if you're on the bus. Just obviously a bit of background as to you know, how you got my number and you know random.
Yeah, so you'll find my.
Colleagues and myself are very approachable and yeah, we just want to help.
And just to reiterrect to everyone listening, I have absolutely zero connection with blue Land and get asked all the time who do I recommend? Who do I like? Who do I trust? And I'm not going to recommend someone I don't know that I haven't worked with, and I haven't seen for myself how they work. And as I said, you know, blue Lands look after myself, my family members, and my friends, and I've only ever had amazing feedback.
I get zero benefit from doing this other than the fact that I get to sleep at night knowing that you're in really good hands with someone who's reliable, honest, transparent, and he's bloody good at their job. All right, everyone, thank you so much for listening today's episode on Sugarmuma's Fireplay.
If you enjoyed this episode, please make sure you go and send it to your friends, send it to your partner if you have one, send it to your family members, because I really want to help Australians get their mortgages down, actually see that they are powerful and capable of doing
this for themselves. And of course it doesn't actually take too much effort to start to see a shift, a breakthrough as those mortgage repayments reduce, those interest costs come down, and you actually see that you're making substantial headway and saying goodbye to that thirty year prescription made by your bank and hello to fifteen, ten or even five years mortgage terms. How good would that be? All possible when you apply financial literacy to your financial situation, of course,
including all of those important valuable goals and trips. Thank you everyone for listening to Sugarmuma's fireplay. In the meantime, keep that financial fire burning Bright Chapel