0:00 [Music] 0:10 hi and welcome to Dollars and making 0:11 sense a weekly show about Finance money 0:13 and investing I'm your host Ray Trevon 0:15 from OTG Capital we broadcast locally on 0:19 radio Northern beaches and around 0:20 Australia on the community radio network 0:23 I'm really really pleased to Welcome to 0:25 the microphone this week for the very 0:26 first time I have Victor Lagos from 0:30 Lagos financially Financial did I 0:32 pronounce that correct Victor uh it it 0:34 was close it's Victor Lagos Lagos losos 0:37 I I should be I should be innocent of 0:40 this because I come from Italian 0:41 background so I should have checked 0:43 before we actually came on a I apologize 0:45 losos okay now Victor comes uh to us 0:49 with a background as a mortgage broker 0:51 he's the holder of an Australian credit 0:53 license and like we always do ladies and 0:55 gents on dollars making sense I make 0:57 sure that people that come on to the 0:58 show are licensed actually talk about 1:00 what they talk about uh we don't like 1:03 fin fluences and and the like that you 1:06 know they read money smart and all of a 1:07 sudden they're an overnight expert but 1:09 look Victor's been doing this since age 1:12 19 my word it's nice to know that you 1:14 started young uh Victor in that regard 1:16 and Victor's expertise lies within 1:18 residential and commercial property 1:20 Finance now today Victor I've asked you 1:22 on the show and I think one of the 1:25 things that really I I'd like talking to 1:27 people about is debt um I invest in debt 1:31 but we're not talk here to talk about me 1:33 I like to talk to people about debt 1:34 because my kids sometimes come to me and 1:36 they don't understand how money can cost 1:38 different amounts but it actually does 1:41 doesn't it money can cost a lot or it 1:43 can be can be I guess uh cheaper than 1:45 usual you know there's a difference 1:47 between good dead and bad dead isn't 1:49 there yeah exactly and a lot of the time 1:51 people don't realize this until they're 1:53 later stage in life when they've 1:55 borrowed money paid it back with 1:57 interest and uh and used debt for their 1:59 own benefit so I've learned through 2:01 personal experience and professional 2:03 experience so I really love to share 2:04 that wonderful wonderful so I guess like 2:07 all of us that have been around the 2:09 traps a little and you you get a few 2:10 wrinkles and a bit of gray hair and or 2:13 hair that's just disappearing these days 2:15 I guess but I think one of the things uh 2:17 do you tend to learn from good 2:19 experiences or bad experiences in your 2:21 in your time Victor bit of both actually 2:25 uh I mean I mentioned you mentioned 2:27 earlier that I've been in the the game 2:29 since I was 19 to give you some contexts 2:31 I'm 37 now so that's 18 oh so 2:37 old yeah but I tell you what though 2:39 people get onto the uh debt bandwagon 2:42 pretty early these days with uh your buy 2:44 now pay laders and credit cards and you 2:47 know if they don't they don't teach you 2:48 this stuff at school like how does this 2:49 stuff work it's it's so easy to get 2:51 credit and uh through these lessons uh 2:55 you learn actually I probably shouldn't 2:57 have taken out that personal loan I 2:59 probably should have you know taking out 3:01 too many credit cards but I should have 3:03 invested in property earlier when I was 3:05 younger so that's what I like to share 3:06 as well it's a fascinating thing against 3:09 Victor one of my regular contributors to 3:11 Dollars are making sense is Philip a 3:13 hunt who does a lot of Education with 3:16 women largely uh single women over the 3:18 age of 55 because unfortunately there 3:21 are you know that's the biggest age 3:23 group of people getting themselves into 3:25 trouble but certainly a lot of 3:27 youngsters are getting themselves into a 3:28 lot of trouble because of things like 3:30 buy now pay later uh and I guess that's 3:33 one of the reasons I wanted to to bring 3:35 you on the show to talk about that 3:37 because we talk about money around our 3:40 dinner table but you're absolutely right 3:42 you know when we've gone and approached 3:43 our local schools to talk about Finance 3:47 the curriculum's very full and it 3:48 doesn't get taught at school so how are 3:51 people how are youngsters picking up 3:53 their information about what is good 3:55 debt and bad 3:57 debt it's a good question because I 3:59 don't consider myself a youngster 4:01 anymore but what it's a matter of 4:04 context Victor it's 4:06 context but what I've heard is a lot of 4:09 them are are watching Tik Tok videos uh 4:11 YouTube Instagram and as you said a lot 4:14 of the uh Finn uh fluences right 4:17 Financial influencers so I don't 4:19 consider myself a financial influencer I 4:22 am an Australian credit license holder I 4:23 do have a mortgage broking and 4:25 Commercial broking business uh but at 4:27 the same time I'm also a consumer so and 4:30 I'm an investor so I like to share from 4:33 both sides of the spectrum from 4:35 borrowing and also from investing and 4:37 also from what my clients do in in a 4:40 sort of a optimized and an effective tax 4:43 effective way so podcast is probably you 4:46 know great medium to do that I have my 4:49 own podcast as well which I I share a 4:50 lot of these insights but um yeah the 4:54 banks really unfortunately you know and 4:56 the financial institutions you know 4:58 they're earning interest on and and 5:00 charging you fees but they're typ 5:02 typically not going to educate you on 5:04 how to optimize it for your own benefit 5:06 right they'd probably prefer you carry 5:08 the debt for as long as possible it's 5:10 one of those fascinating things I can 5:12 actually speak as the voice of 5:13 experience that I can remember back in 5:16 the day in 1978 when bank card first 5:19 came out and this was before you were 5:21 born Victor and and so from that 5:23 perspective when bank card came out 5:25 MasterCard and Visa were overseas Brands 5:29 and Amic Express and Japanese credit 5:32 bureau JCB as other people might know it 5:35 or diners were all International Brands 5:37 but not here in Australia and so when 5:39 bank card came out this was a credit 5:41 card that was pushed out by the big four 5:43 major Banks and I grabbed one I thought 5:46 beauty let's go uh and in the space of 5:50 you know 12 to 18 months Australians 5:53 racked up some enormous amount of debt 5:55 because they gave these to everybody and 5:58 you know when we dial the clock full it 6:01 doesn't seem to be that much restraint 6:04 even now given all those years of 6:06 experience is that your experience as 6:08 well Victor yeah yeah exactly I mean 6:12 when I was 18 I was working in in retail 6:15 at KS and I wanted to buy a car and I 6:18 walked into uh my bank which was St 6:21 George bank at the time and you know 6:23 they approved me and I was on a casual 6:25 income they approved me $8,000 credit 6:28 card uh and they also approved me for a 6:32 uh 5,000 no sorry it was a $5,000 credit 6:35 card and an $88,000 personal loan 6:39 straight on the spot so it was easy to 6:42 get money and it's and it's gotten 6:43 easier and then they uh entice you with 6:47 um limit increases so I I I went through 6:50 that cycle where I was like oh well 6:52 they've given me a limit increase so it 6:54 felt good so I took it and at one point 6:56 I even had five credit cards five 7:00 yes yeah and I was going through the the 7:03 the experience working for a financial 7:05 institution so I was learning you know 7:08 both ends you know I did realize over 7:11 time that five credit cards or more 7:13 credit cards is not actually a positive 7:15 thing but at the time it felt like it 7:17 was I was like well I've got access to 7:18 all this credit and um so yeah like that 7:21 was my from the personal side of things 7:23 and then you know buy now pay later has 7:24 only sort of come out the last few years 7:27 and I can personally attest that I've 7:28 I've never used it I've I've had clients 7:31 that have had them and closed them in 7:33 order to get their mortgage applications 7:35 across the line but yeah we'll talk 7:37 about that we'll pick up on that in the 7:39 second half of the show but I think 7:41 what's fascinating for me is that over 7:42 the years when bank card first came out 7:46 uh access to the card was free uh mind 7:48 you banking services back then did not 7:51 have the kind of fees you could open a 7:52 bank account at that time and not be 7:55 levied the kind of fees and charges that 7:56 we are today and so gradually over a 7:59 course of time the big four have 8:01 certainly made their their claim stake 8:03 their claim to how much fees they make 8:06 from all of us on a daily and yearly 8:08 basis but I think you know the idea of 8:11 having five credit cards when I think 8:12 the average fee for a card is you know 8:15 anywhere between $50 to $200 per card um 8:19 all of a sudden those kind of costs can 8:22 can be quite prohibitive and so that 8:24 together with the vast majority of 8:26 credit cards that I'm aware of and 8:28 please you know tell me if I'm wrong but 8:30 that money costs anywhere between 20 to 8:33 24% um when rates you know home loan 8:36 rates right now are around the sevens 8:38 and eights and so that's triple the cost 8:41 of what a home loan and I might remind 8:44 ladies and gentlemen as well during the 8:45 pandemic when interest rates were at 8:47 record 8:48 lows uh and the RBA was at 0. one of a 8:52 percent credit cards were still at 24% 8:55 so I'm just sitting there on somebody's 8:57 making a killing 8:59 yeah no no it's true you know you don't 9:02 realize what you're actually paying in 9:04 interest what you you know I come of 9:07 what year it was but there was some 9:08 legislation that basically said that on 9:10 the statements the uh financial 9:12 institutions that offer credit cards the 9:14 banks uh actually have to disclose how 9:16 long it will take you to pay the credit 9:18 card off if you made the payment but 9:20 when I was getting credit cards that 9:21 wasn't on the statement so you make the 9:23 minimum and literally it's just a it's 9:25 interest and maybe a a very small 9:28 percentage of of principle 9:30 and it can take 15 20 years sometimes to 9:32 pay pay back 10 grand it's ridiculous so 9:36 so it takes my breath away just hearing 9:39 those numbers because I think and I've 9:43 come across i i i as somebody in finance 9:47 thankfully I guess from my perspective I 9:49 don't deal with day-to-day punters when 9:51 it comes to this but I've been asked by 9:53 members of my direct and indirect family 9:56 sometimes to step in and help and I'm 9:59 you've probably seen this yourself 10:00 Victor you see some tragic errors and 10:04 you know when you've got five credit 10:05 cards I've seen people use credit cards 10:07 to pay off other credit cards and so 10:10 they're What's called the debt rollover 10:11 so they're rolling debt over with more 10:13 debt which is just I I I I I I want to 10:17 scream because you are paying so much 10:20 money in in interest that it's just 10:23 frightening when you think about it 10:24 really well that's exactly how I got to 10:27 five credit cards so oh really so you 10:30 were in that trap I was in that trap so 10:32 the way they get you and it does work if 10:35 you do it right so what happens is you 10:37 do what's called a balance transfer so 10:39 you apply for One credit card to pay out 10:41 the other but then what happens is that 10:44 bank doesn't pay the other credit credit 10:47 card out directly so sometimes they 10:49 actually pay you and then therefore you 10:51 have access to to you know cheap money 10:53 potentially that's what happened to so 10:55 they give you the cash to pay the card 10:57 hoping that I'll actually do it oh no I 11:00 thought that that went directly on the 11:01 card that you had no choice maybe now 11:03 but at the time it wasn't the case they 11:05 literally gave me a bank check in my 11:07 name and I could just go spend that look 11:09 I'll be honest I did pay it to the 11:10 towards the card that wasn't the issue I 11:13 did honor that but I can see where many 11:15 people wouldn't atted to use that money 11:18 right that's like giving heroin into a 11:20 junkie isn't 11:22 it and on and on top of it they can't 11:25 control whether you Clos the card so 11:27 therefore exactly what you happen say 11:28 you got 5,000 owing you apply for 11:31 another 5,000 you pay out the other card 11:33 and you honor that right or they pay 11:35 directly they can't enforce you closing 11:37 that card so now you've got one that's 11:39 free with 5,000 available and another 11:41 one that's maxed out so if you don't 11:43 close the other one you have got two 11:44 cards you see that's how I can quickly 11:45 get to five wow wow it's fascinating I 11:50 guess because in that regard when I I 11:53 helped somebody in my family using one 11:56 of these um balance transfer facilities 11:59 I read the PDS I actually I'm one of 12:02 those anal people I I read terms and 12:04 conditions and I read the terms and 12:06 conditions of this particular transfer 12:08 and ladies and gents it's all well and 12:10 good but once you actually use the card 12:13 that the the new one they've given you 12:15 um when you pay that off all the money 12:18 you've taken um for the cash to help pay 12:21 the other one then starts acur interest 12:24 as well and um it's it's a nasty trap 12:27 and when I read the the terms and 12:29 conditions I grabbed the card from my 12:32 family member and cut it up on the spot 12:34 and we just used the cash and paid it 12:36 off but look we're about time for a 12:38 break here on dollars and making sense I 12:40 have Victor Lagos from Lagos Financial 12:43 we're going to go for a short break and 12:44 we'll be back in just a 12:46 moment hi and thank you for listening to 12:49 Dollars and making sents a weekly radio 12:51 program about Finance money and 12:54 investing on radio Northern beaches and 12:56 nationally on the community radio 12:57 network around Australia the views 13:00 comments and opinions aired during our 13:02 program should not be construed or 13:04 viewed as Financial advice any 13:06 commentary is general advice only and 13:09 does not take into account your 13:10 objectives financial situation or needs 13:13 you should consider whether the advice 13:15 is suitable for you and your personal 13:17 circumstances if in doubt you should 13:19 contact an authorized licensed financial 13:22 planner we welcome questions and 13:24 feedback and you can get in touch with 13:26 us via our blog social media channels or 13:28 email 13:29 please search for dollars and making 13:31 cents in your favorite podcast platform 13:33 or check out our blog at OTG capital.com 13:37 au/ 13:38 [Music] 13:43 blog hi and welcome back to Dollars and 13:46 making cense a weekly show about Finance 13:48 money and investing I'm your host Ray 13:50 Trevon at the microphone this week we 13:52 have Victor Lagos not Lagos like I said 13:55 before the break I apologize Victor I've 13:57 got to get names right names are your 13:59 most important thing ladies and gents 14:01 it's something that I've had drummed 14:02 into me get the name right so it's 14:05 Victor Lagos so Victor before we went to 14:08 the break we were talking about credit 14:09 rollover being such a burden on people 14:12 and when I think about young kids today 14:15 they've got hex debt which is what we 14:16 didn't have when we were growing up so 14:18 you've got hex debt people then 14:20 potentially get credit card debt they're 14:22 rolling over credit and then Along Comes 14:24 This tsunami of by now pay later and we 14:28 normally don't mention company names but 14:31 I'm going to mention a few afterpay zip 14:33 pay uh and there's another of others 14:35 there's a again there's a fair bit of 14:38 credit out there latitude uh is a big 14:40 company doing a lot of um advertising so 14:44 so Victor what's your big suggestion 14:46 then what's your takeaway for people 14:48 listening today to not get caught by 14:50 these 14:51 traps okay so the Temptation is and the 14:54 ease is and the convenience is what 14:56 makes by now pay letter work so if you 14:59 look at spending say uh $500 on 15:02 something and you have money in your 15:04 bank account to cover that and they say 15:06 you know what you can actually pay this 15:08 off in six installments instead and you 15:11 know oh you know what I only have to 15:12 spend 83 bucks therefore I can keep my 15:15 500 or 400 and so it's like why not just 15:18 do that I can see that that's the the 15:20 reason what people uh will go for it but 15:23 what you don't realize is that you're 15:25 actually stealing from your future self 15:28 instead of giving to your future self 15:29 see that's the concept that got me okay 15:32 I like that I like that stealing 15:35 stealing from yourself because think 15:37 about this you know you buy it and you 15:39 have the feeling that it feel feels good 15:41 let's just say you're buying a new a new 15:43 mobile outright and you you know you get 15:46 the new mobile phone and then after 15:48 about a week you got used to it feels 15:51 all right now you're used to it just 15:52 like your previous phone right so you've 15:55 enjoyed that feeling but now your future 15:57 self has to pay it back so for the next 16:00 six installments or if it's on a credit 16:02 card however long it takes you pay it 16:03 back now you have to pay it back while 16:06 your past self got to enjoy that while 16:08 your future self is like oh thanks past 16:10 self now I got to deal with this 16:12 right because now it's affecting your 16:14 pay packet in the future no longer the 16:16 past pay it's not like you put money 16:18 aside dedicated for that right it's 16:20 going to come out of your next pay 16:21 packet and maybe the one after that too 16:23 but then if you think about it from the 16:24 other way around if you that's that's 16:26 what's called instant gratification if 16:28 if you have what's called delayed 16:30 gratification the other way around is 16:32 giving to your future self so if you if 16:34 you don't want to part ways with your 16:36 $500 right now then put away $83 per 16:40 week per fortnite however how often you 16:42 get paid and then each time you do that 16:44 it feels good because you know that 16:46 you're putting money aside and you're 16:47 going to give to your future cell and 16:49 you're managing your money you're you're 16:51 actually you know in control of in 16:52 control yeah very much so so it's very 16:55 much there used to be a cartoon that I 16:57 remember growing up where you had a 16:59 little devil and a little angel on 17:01 either shoulder and and the devil was 17:03 talking in one ear and the angel in the 17:04 other and I guess it's very easy when 17:08 you think about what's transpired over 17:11 the last sort of four to five years with 17:13 the pandemic with the increased payments 17:16 with people I guess with a lot of time 17:18 on their hands and I know internet 17:20 spending went through the roof as did 17:22 internet gambling uh which again these 17:26 are things that I look at and these are 17:28 disasters waiting to happen when you are 17:31 trying to create wealth and I'm not 17:34 trying to be a Debbie Downer here Victor 17:36 because I'm a huge believer in in self- 17:38 responsibility and also if you're out 17:40 there and you've worked hard you've got 17:42 every right to spend your money the way 17:45 you want that's what freedom of choice 17:47 is the difficulty becomes as you've 17:50 rightly pointed out if you're stealing 17:52 from yourself and then your future 17:53 self's looking back I mean these are 17:56 these are tough things to to really 17:58 start you know thinking about and I've 18:00 seen b our pay lad now extending into 18:03 even meals where you go out to dinner 18:06 and I've seen restaurants that actually 18:09 bnpl uh $150 dinner out all of a sudden 18:13 you're still paying for that six weeks 18:15 later I mean that really nice pizza 18:17 restaurant you went to that tastes long 18:20 gone exactly that's right and the other 18:23 thing is if you're doing it more often 18:25 than not and multiple providers um or 18:28 multp little contracts what you're 18:30 actually doing is enforcing that idea of 18:34 uh instant gratification and and 18:36 therefore you're not thinking about the 18:38 future and then when you're when you're 18:39 saying I want to now buy a house or I 18:41 want to invest in property well you you 18:43 need to now work hard to train your 18:45 brain to actually put money aside 18:47 because you need a significant deposit 18:49 now but you're used to getting what you 18:51 want right now without your money so 18:53 you're now you're you're on the back 18:54 foot but if you start training yourself 18:56 putting money aside each pay pay check 18:59 eventually you do have enough to pay 19:01 that mobile outright you thank your past 19:03 self and say thank you for putting money 19:04 away you look after me and now you own 19:07 the phone outright so you have that 19:08 positive feeling moving forward now 19:11 Victor I wanted to to ask you a more 19:13 in-depth question you mentioned in the 19:15 first half of the show that you've been 19:17 talking to some of your clients who have 19:19 had to get rid of their bnpl when 19:21 they're applying for a loan now I've 19:23 heard these stories as well that credit 19:25 cards and bnpl accounts can actually be 19:28 a big detractor so as a mortgage broker 19:31 what do you advise people that walk into 19:33 your office and say to you hey Victor I 19:35 want to take out a loan and they've got 19:37 these maybe even if they don't have debt 19:40 but if they've still got a credit card 19:41 that could be a problem couldn't it yeah 19:43 so banks will always look at the worst 19:45 case scenario and that is if you decided 19:48 to max out your buy now pay laders up to 19:50 their limit and max out your credit 19:52 cards so many clients tell me oh I clear 19:54 it every single month or I pay it every 19:56 single time so the bank should only look 19:59 at that and say no no no they don't look 20:01 at that they look at what's the worst 20:03 case scenario so sometimes people are 20:05 carrying really high limits you know 20:06 they have a u you know a zip pay account 20:09 for five or 10,000 so if they can bring 20:11 that down to $1,000 or you know even 20:14 better close it that's going to improve 20:16 their borrowing capacity and it's also 20:18 going to make them um look better to the 20:20 bank because they've you know closed 20:23 that so now that's showing on their 20:24 credit file as closed that improves your 20:27 credit score see people have the 20:28 misconception that oh I need to have 20:30 debt in order to improve my credit score 20:33 no you literally just have to have a 20:34 credit file and make your you know and 20:37 never fall make your payments and that's 20:39 it that's enough to get your credit 20:40 score it will get better over time as 20:42 you age and then when you take out a 20:44 mortgage and you make those payments 20:45 it'll improve too so yeah that's also 20:48 misconception out there I guess another 20:51 misconception and again correct me if 20:52 I'm wrong because you see this day by 20:54 day I don't is it true that the banks 20:56 are now looking at what's on you credit 20:59 card and how many coffees you're having 21:00 on a weekly basis is that true it's a 21:03 good question actually right so some 21:06 banks yes uh so 21:08 through will when should that be any of 21:11 their business I like hey I'm Italian I 21:13 like my coffee I mean if they're going 21:14 to tell me I can't have my coffee it's 21:16 like hang on a moment guys what what 21:19 they do is they look at your transaction 21:21 uh history including your credit cards 21:23 and they work out what did you actually 21:25 spend in the full month versus what you 21:28 deced and they have a a measure called 21:31 hem household expenditure measure all 21:33 the banks use it it comes from the 21:35 Melbourne Institute and this is an 21:37 estimation of what a household would 21:39 spend based on how much income you're 21:40 earning based on your location based on 21:43 how many in the household and that's 21:45 their minimum but if you declare that 21:46 you spend less than that they're still 21:48 going to use that as their minimum but 21:50 if you declare less and then they check 21:53 your credit cards and your transaction 21:55 statement it adds up to average out more 21:57 than what you've declared they're gonna 21:59 ask the question and say wait a minute 22:01 aren't you actually spending more 22:02 because your cards are showing that you 22:04 are wow yeah yeah for sure but look not 22:06 all banks will ask for that and this is 22:08 where it's my job as a broker to find 22:10 the banks that actually are a bit more 22:12 you know U realistic because let's face 22:14 it when people take out loans to buy 22:16 property they're usually going to also 22:18 adjust their spending right they're not 22:19 going to always go out every single 22:21 night you know they're going to adjust 22:23 it because they're taking on a new debt 22:25 so that's the other thing it doesn't 22:26 account for I've got a tell you it would 22:29 be a very interesting thing for people 22:31 my age uh and I'm considered a boomer 22:34 although I still think I'm a little 22:35 young in that space But when we were 22:37 going for our mortgages um I actually 22:40 borrowed money from the the bank of mom 22:42 and dad because uh back then if you 22:45 didn't have a long-standing relationship 22:47 with a bank they wouldn't lend to you I 22:48 mean these days you can turn up to any 22:50 bank they may not know you from from 22:52 Jack but they'll still lend you money if 22:54 you pass all the tests that you've been 22:56 talking about but 22:59 I guess it's a fascinating thing because 23:01 again I people my age say oh the kids 23:04 don't know you know we had to go through 23:06 18 you know 18 19% and that's a fair cop 23:09 that's a fair comment but the the the 23:13 real difficulty these days is that the 23:15 average cost of a house now for example 23:16 here in Sydney and even in Melbourne and 23:18 many other Regional centers where this 23:19 show is is taken and listened to is not 23:22 two or three times when I was in my 20s 23:25 it's 10 to 12 times and so you know you 23:29 are talking to people on a daily basis 23:31 what kind of deposit are people walking 23:33 into your office and saying hi we're 23:35 ready to buy a 23:36 place well if it's for an owner occupier 23:40 buying their first home um you I'm 23:43 talking to one for example looking at 23:45 buying in Sydney for 650,000 which is 23:49 very difficult to find that's a unit um 23:51 in most places and she has a deposit of 23:56 135,000 that's and that's with stamp 23:59 Duty waved right because as a first home 24:01 buyer have first time buyer of course 24:03 yes yes yes correct but if if you don't 24:06 have the stamp Duty way because you've 24:07 owned property before or you're buying 24:09 an investment into State then you would 24:12 need upwards of 150,000 to cover the 24:15 deposit and that's to avoid lenders 24:17 mortgage insurance so and have a 24:19 competitive interest rate right so 24:21 that's yeah yeah go on now before finish 24:24 up because Victor I'm definitely going 24:26 to have you back on the show can you 24:27 please explain to me when people have to 24:29 take out mortgage insurance who is that 24:32 insurance actually 24:34 covering yeah so it's called LMI lenders 24:37 mortgage insurance and it's actually 24:39 there to protect the bank not the actual 24:41 borrower it's so that if they big 24:44 misconception isn't it misconception 24:46 yeah and another misconception is that 24:48 is that you uh can switch Banks so 24:51 people will say you go in at 90% in uh 24:54 loan to value ratio and you pay you know 24:56 lender mortgage insurance 24:58 if you then decide to refinance and go 25:00 to another bank if that's still at 90% 25:03 or 85% because the value's gone up 25:05 slightly you now need to pay LMI again 25:08 with another bank even if it's the same 25:10 mortgage insurer they'll still charge 25:12 you again so they're double dipping 25:14 because it's a different bank you're 25:15 going with or lending institution and 25:18 you don't get a refund either so it's um 25:21 it can be quite costly so if you can 25:23 avoid it the better other times if it's 25:26 a cost of doing business and you're 25:27 Building Wealth through property it's a 25:29 it's a strategy it's also tax deductible 25:31 but when you're moving into your your 25:33 you know your first home or an owner 25:34 occupied property if you can get that to 25:36 80% or below it's going to give you 25:39 better options and it's going to allow 25:40 you to switch Banks later in the case 25:42 that you need to to get a better rate 25:44 and I might add ladies and gents if 25:46 you're listening you know it wasn't uh 25:50 overly common in my time we didn't go 25:52 out and buy a home straight off we 25:54 bought an apartment I mean when when I 25:56 was going out to buy my very first when 25:58 I got out of the Defense Forces there 26:01 was no way known I could afford a house 26:03 I mean that was just way out of my 26:04 league and so you know buying an 26:06 apartment was always in my view that 26:08 first rung on the real estate property 26:11 um mergo round that I I remember I I 26:14 hopped on it I think at the ripe old age 26:16 of 28 or 29 but uh thankfully stayed on 26:19 it ever since but you know Victor look 26:22 there's so many things we can be talking 26:24 about and I mean the little check sheet 26:26 you sent me some some great topics and I 26:30 really like you know one of the key 26:31 takeaways I want people to think about 26:33 is gifting themselves and stealing from 26:36 themselves that's a great message um 26:39 that that I think we can leave our 26:40 listeners and you know Victor Lagos 26:43 losos Victor Lagos Victor Lagos from 26:48 Lagos from losos Financial it's been a 26:51 real pleasure having you on the show 26:53 thanks Ray I really appreciate it and uh 26:56 if those who you want to uh listen to my 26:58 content you don't even have to be my 26:59 customers I also have my own podcast 27:01 it's called debt to Financial Freedom 27:04 and you'll find that on uh you know 27:05 Spotify and YouTube and whatnot so 27:07 wonderful happy to give it a big plug 27:09 good education out there ladies and 27:11 gentlemen Good Financial education 27:13 remember save for yourself not for the 27:17 banks don't steal from yourself give to 27:19 your future absolutely Victor losos 27:22 thank you so kindly for your time today 27:24 no worries at all thanks Ray thanks for 27:25 having me on appreciate it 27:36 e