Welcome to How Today Afford That, the podcast that peeks into the financial lives of everyday Australians. I'm Michael Thompson. I'm an author and the co host of the podcast Fear and Greed business news. As always, I am with Canna Campbell, financial planner and founder of sugar Mama TV, which is a financial literacy platform that you find pretty much everywhere YouTube, podcast, books, Instagram, threads, TikTok, keynote, speeches everywhere.

Welcome to How Today Afford That, the podcast that peeks into the financial lives of everyday Australians. I'm Michael Thompson. I'm an author and the co host of the podcast Fear and Greed business news. As always, I am with Canna Campbell, financial planner and founder of sugar Mama TV, which is a financial literacy platform that you find pretty much everywhere YouTube, podcast, books, Instagram, threads, TikTok, keynote, speeches everywhere.

Hello, Canna, good morning. How are you?

Hello, Canna, good morning. How are you?

I am good and I am looking forward to today because we are going to help everyone save a bit of money today.

I am good and I am looking forward to today because we are going to help everyone save a bit of money today.

That's what we do. We're good at this.

That's what we do. We're good at this.

Yeah, it's a lofty goal. Every single person who's listening to this right now is going to save some money because today we are talking about the idea of a loyalty tax. We are looking at who is paying it spoiler pretty much everyone right, how much it's costing you, how to stop paying it, and most importantly, how to start saving some money. Let's get straight into it. What is a loyalty tax.

Yeah, it's a lofty goal. Every single person who's listening to this right now is going to save some money because today we are talking about the idea of a loyalty tax. We are looking at who is paying it spoiler pretty much everyone right, how much it's costing you, how to stop paying it, and most importantly, how to start saving some money. Let's get straight into it. What is a loyalty tax.

So loyalty taxes where you simply pay because you've been a long term customer and I don't really want to point fingers here. But companies sometimes think that we're not going to go and check our bills or shop around for another deal, so they gradually and gently increase prices without us necessarily noticing, or they fail to let us know about any new special promotions and discounts that they might have coming up. So essentially it's a financial penalty for sticking around with one provider for too long and not actually stopping to question the actual value and whether you could be getting better value potentially elsewhere, or asking for a better deal.

So loyalty taxes where you simply pay because you've been a long term customer and I don't really want to point fingers here. But companies sometimes think that we're not going to go and check our bills or shop around for another deal, so they gradually and gently increase prices without us necessarily noticing, or they fail to let us know about any new special promotions and discounts that they might have coming up. So essentially it's a financial penalty for sticking around with one provider for too long and not actually stopping to question the actual value and whether you could be getting better value potentially elsewhere, or asking for a better deal.

Okay, And so typically this is where you will see special deals being promoted for new customers and things like that, and you're like, hey, I've been with you for five years or ten years or something like, why don't I get that price that they're offering.

Okay, And so typically this is where you will see special deals being promoted for new customers and things like that, and you're like, hey, I've been with you for five years or ten years or something like, why don't I get that price that they're offering.

That's not fair? I want that deal too.

That's not fair? I want that deal too.

Now, I think there is the general assumption that this is all about banks. It is not all about banks, is it? Because there are other service providers?

Now, I think there is the general assumption that this is all about banks. It is not all about banks, is it? Because there are other service providers?

Yes, So look, banks probably get the first finger pointing deal when it comes to the term loyalty tax, but it's not at all just limited to banks. Insurance companies, you know, particularly personal insurance. Then there's gas and electricity, you know, gym membership subscriptions, and I remember during Frugal February, I called up my energy and gas provider, which are the same company, and within minutes I had one hundred and thirty dollars per month knocked off my plans.

Yes, So look, banks probably get the first finger pointing deal when it comes to the term loyalty tax, but it's not at all just limited to banks. Insurance companies, you know, particularly personal insurance. Then there's gas and electricity, you know, gym membership subscriptions, and I remember during Frugal February, I called up my energy and gas provider, which are the same company, and within minutes I had one hundred and thirty dollars per month knocked off my plans.

Did you say one hundred and thirty dollars?

Did you say one hundred and thirty dollars?

Yeah? Have you not been listening to any of my Frugal February results?

Yeah? Have you not been listening to any of my Frugal February results?

Yes, clearly not. Yeah, so well I hadn't. I wasn't aware that the savings were so big. Yeah, that is really impressive. You mentioned insurers, right, and I want to kind of cover a whole lot of those, like gyms. I'm surprised by gyms as well. But we just stay on insurers for a moment, because everyone has some form of insurance, right, whether it's your car insurance, a health insurance, or your home insurance. You see that there is like a loyalty discount when you go to renew, you get kind of like a twenty five percent off of being a loyal customer or something. Is that then a little bit deceptive?

Yes, clearly not. Yeah, so well I hadn't. I wasn't aware that the savings were so big. Yeah, that is really impressive. You mentioned insurers, right, and I want to kind of cover a whole lot of those, like gyms. I'm surprised by gyms as well. But we just stay on insurers for a moment, because everyone has some form of insurance, right, whether it's your car insurance, a health insurance, or your home insurance. You see that there is like a loyalty discount when you go to renew, you get kind of like a twenty five percent off of being a loyal customer or something. Is that then a little bit deceptive?

It can be, So there's all sorts of benefits and perpose it can come with some of these insurance policies, you know, access to certain parks and entertainment and various sporting activities. But you've got to really look at what obviously what's applicable to you and whether you're going to make the most of that. So, yes, there are discounts, but there also are ones that can also encourage you to spend money where you weren't going to necessarily, so actually you can end up costing you even more, as well as the fact that it's not necessarily that competitive. A classic is you know that you see and it's not just insurance companies, even particularly retail. You know they'll have a special sale for the weekend where you spent three hundred, but you don't have to pay two hundred. Now, you may have never intended in going and spending three hundred dolls in that store, even a fifty dollars in that store, because of that offer, they've been enticed you in and to spend and do obviously partner with their colleagues and associates and partners.

It can be, So there's all sorts of benefits and perpose it can come with some of these insurance policies, you know, access to certain parks and entertainment and various sporting activities. But you've got to really look at what obviously what's applicable to you and whether you're going to make the most of that. So, yes, there are discounts, but there also are ones that can also encourage you to spend money where you weren't going to necessarily, so actually you can end up costing you even more, as well as the fact that it's not necessarily that competitive. A classic is you know that you see and it's not just insurance companies, even particularly retail. You know they'll have a special sale for the weekend where you spent three hundred, but you don't have to pay two hundred. Now, you may have never intended in going and spending three hundred dolls in that store, even a fifty dollars in that store, because of that offer, they've been enticed you in and to spend and do obviously partner with their colleagues and associates and partners.

Okay, let's kind of go to home loans because or banks generally, but focusing on home loans, I suppose because this is probably the big one and the one that is most Look at me making assumptions here, I'm hoping this is a correct assumption that a loyalty tax on a home loan where you have been with the bank for a very long time, and you have been paying perhaps one interest rate for quite some time, and you see new customers being enticed to come over to this bank with a fantastic interest rate, and you're thinking, why aren't I getting that rate? Banks would be the one that you are paying the most on a loyalty tax, right.

Okay, let's kind of go to home loans because or banks generally, but focusing on home loans, I suppose because this is probably the big one and the one that is most Look at me making assumptions here, I'm hoping this is a correct assumption that a loyalty tax on a home loan where you have been with the bank for a very long time, and you have been paying perhaps one interest rate for quite some time, and you see new customers being enticed to come over to this bank with a fantastic interest rate, and you're thinking, why aren't I getting that rate? Banks would be the one that you are paying the most on a loyalty tax, right.

Look, everyone is obviously in a different situation. But yes, and I'm actually really glad you asked this question because I've answer some numbers, and the numbers are looking quite sexy. If I don't might say so myself. So if you look at say an average home loan of about five hundred thousand dollars, and you're paying on average over the life of the loan, which is typically around thirty years, around sort of six point five percent, but you then negotiate five years into six percent, that's two and a half thousand dollars a year in savings. Now, if you think about that just for a ten year period alone, that's twenty five thousand dollars. But though that potential cost all that potential savings can go even further because if you maintain your existing mortgage repayments as though they already remain at six point five, even though you're onready being charged six, you can potentially, say fifty five thousand dollars and pay off your home two and a half years off soon. So that loyalty tax is definitely not just limited to the two and a half thousand dollars per Yeah, it represents so much more. And of course, you know, paying off your home loan two and a half years earlier that those are mortgage repayments can go into super to go into investing, to go into other lifestyle requirements. So it really does pay to look at where you're potentially being overcharged.

Look, everyone is obviously in a different situation. But yes, and I'm actually really glad you asked this question because I've answer some numbers, and the numbers are looking quite sexy. If I don't might say so myself. So if you look at say an average home loan of about five hundred thousand dollars, and you're paying on average over the life of the loan, which is typically around thirty years, around sort of six point five percent, but you then negotiate five years into six percent, that's two and a half thousand dollars a year in savings. Now, if you think about that just for a ten year period alone, that's twenty five thousand dollars. But though that potential cost all that potential savings can go even further because if you maintain your existing mortgage repayments as though they already remain at six point five, even though you're onready being charged six, you can potentially, say fifty five thousand dollars and pay off your home two and a half years off soon. So that loyalty tax is definitely not just limited to the two and a half thousand dollars per Yeah, it represents so much more. And of course, you know, paying off your home loan two and a half years earlier that those are mortgage repayments can go into super to go into investing, to go into other lifestyle requirements. So it really does pay to look at where you're potentially being overcharged.

How do you know? It's all well and good to say, hey, you can do this, you can kind of get a better deal, But how do you know if you are actually paying a loyalty tax, if you are overpaying as a loyal customer.

How do you know? It's all well and good to say, hey, you can do this, you can kind of get a better deal, But how do you know if you are actually paying a loyalty tax, if you are overpaying as a loyal customer.

Well, one thing's for sure, they're not going to call you and tell.

Well, one thing's for sure, they're not going to call you and tell.

You they might.

You they might.

I think I've had one phone call like that in my whole entire life.

I think I've had one phone call like that in my whole entire life.

Really, what was it?

Really, what was it?

It was? I think it maybe be in Foxtell yep, And that was probably because I was threatened to leave.

It was? I think it maybe be in Foxtell yep, And that was probably because I was threatened to leave.

But so slightly different scenario.

But so slightly different scenario.

And I will admit my mortgage broker every year, if not twice a year, he will call the bank on my behalf okay, And he will then call me and say, hey, just letting you know, I've just negotiated X basis points off your home loan has already been applied. Just you'll see those repayments coming down if you want to maintain them. So, yes, I have seen it. But unfortunately, because these institutions play you know know what we're like, we they won't go and give it to us. We have to go and find it ourselves. We need to arm ourselves with the right type of information, do our research, know our numbers, and then have the confidence to pick up the phone, call the phone and say, hey, I think we need to have a little chat.

And I will admit my mortgage broker every year, if not twice a year, he will call the bank on my behalf okay, And he will then call me and say, hey, just letting you know, I've just negotiated X basis points off your home loan has already been applied. Just you'll see those repayments coming down if you want to maintain them. So, yes, I have seen it. But unfortunately, because these institutions play you know know what we're like, we they won't go and give it to us. We have to go and find it ourselves. We need to arm ourselves with the right type of information, do our research, know our numbers, and then have the confidence to pick up the phone, call the phone and say, hey, I think we need to have a little chat.

In a minute. We're going to go through what you should say on the phone, almost a little bit of a script. We could just role play, role play play. Are you going to be the customer and I'll be the banker?

In a minute. We're going to go through what you should say on the phone, almost a little bit of a script. We could just role play, role play play. Are you going to be the customer and I'll be the banker?

Why I want to be the customer. I'm going to be hustling up a better deal.

Why I want to be the customer. I'm going to be hustling up a better deal.

Okay, and I will be the service provider, maybe the gas provider.

Okay, and I will be the service provider, maybe the gas provider.

I was thinking we could do the bank because most people like to call their banks. That's the biggest savings. Come on, we're all about maximizing our savings here. Let's work efficiently. Go for the low hanging fruit here, Michael, So.

I was thinking we could do the bank because most people like to call their banks. That's the biggest savings. Come on, we're all about maximizing our savings here. Let's work efficiently. Go for the low hanging fruit here, Michael, So.

Well, okay, look, shall we can I just touch on the how you know you are paying a loyalty tax? So first, because we talked about the fact they're not going to call you up, you need to be checking this yourself. Is it a case of say, with your home loan, logging in to your bank account, seeing what the home loan rate is that you're currently paying, going to the bank website and seeing what the comparison rate is or what the introductory rate is for new customers, and going, hey, that's less.

Well, okay, look, shall we can I just touch on the how you know you are paying a loyalty tax? So first, because we talked about the fact they're not going to call you up, you need to be checking this yourself. Is it a case of say, with your home loan, logging in to your bank account, seeing what the home loan rate is that you're currently paying, going to the bank website and seeing what the comparison rate is or what the introductory rate is for new customers, and going, hey, that's less.

Yes, that's only half the story though. Half the job you there need to go and have a look at what the competition is offering.

Yes, that's only half the story though. Half the job you there need to go and have a look at what the competition is offering.

Okay, and that will tell you whether you're overpaying essentially, or just whether you have fallen victim to a loyalty tax exactly. Okay, why do you reckon people stay for so long? Is it laziness? Is it complacency? Is it just the fact that everyone we are all so busy and this takes time.

Okay, and that will tell you whether you're overpaying essentially, or just whether you have fallen victim to a loyalty tax exactly. Okay, why do you reckon people stay for so long? Is it laziness? Is it complacency? Is it just the fact that everyone we are all so busy and this takes time.

I think it's three things. I think, as you said, life gets really busy, and unless we are sort of backed into a corner and forced to actually review our bills, like doing Frugal February, we need that trigger or that financial crisis in our life to actually make us pick up the phone or look at our bills or look at our budgets and go all right, something something's got to give here, like even an interest rate hike. But then there's also the psychological factor. So a lot of us assume that we're being taken care of because we're being so loyal to our bank, to our gas provider or energy provider, so we assume that we're going to be We've being rewarded. Of course, we're on the best deal. I've been with my bank for twelve years. Why would they jeopardize, you know, damaging, and we're hourting and we are overcharging. It's just ridiculous. So we kind of paint this false sense of reality, but unfortunately it's not quite as simplistic as that, and a little bit naive to think like that. And then, of course, I think for a lot of people is we feel completely overwhelmed, particularly right now, with the idea of having to pick up the phone have that awkward, sometimes uncomfor comfortable conversation that does actually require you to actually do a little bit of groundwork beforehand and then ask for something that we don't necessarily fully grasp or understand the actual work involved, and if it's even possible, so we could very easily put it to the bottom of bileist things to do and it never ever gets done. And I have shared which I'm really hoping you remember this as a little hack for people who are feeling overwhelmed make that phone call. To try and make it as easy as possible is have the telephone numbers in your phone saved, but in the notes section, or even in the notes attached to that contact, you have your policy numbers, or your homelow numbers, or your customer service numbers, so that when you do get someone who answers the phone, you've actually got a lot of information that they can look up on your behalf to get the conversation going.

I think it's three things. I think, as you said, life gets really busy, and unless we are sort of backed into a corner and forced to actually review our bills, like doing Frugal February, we need that trigger or that financial crisis in our life to actually make us pick up the phone or look at our bills or look at our budgets and go all right, something something's got to give here, like even an interest rate hike. But then there's also the psychological factor. So a lot of us assume that we're being taken care of because we're being so loyal to our bank, to our gas provider or energy provider, so we assume that we're going to be We've being rewarded. Of course, we're on the best deal. I've been with my bank for twelve years. Why would they jeopardize, you know, damaging, and we're hourting and we are overcharging. It's just ridiculous. So we kind of paint this false sense of reality, but unfortunately it's not quite as simplistic as that, and a little bit naive to think like that. And then, of course, I think for a lot of people is we feel completely overwhelmed, particularly right now, with the idea of having to pick up the phone have that awkward, sometimes uncomfor comfortable conversation that does actually require you to actually do a little bit of groundwork beforehand and then ask for something that we don't necessarily fully grasp or understand the actual work involved, and if it's even possible, so we could very easily put it to the bottom of bileist things to do and it never ever gets done. And I have shared which I'm really hoping you remember this as a little hack for people who are feeling overwhelmed make that phone call. To try and make it as easy as possible is have the telephone numbers in your phone saved, but in the notes section, or even in the notes attached to that contact, you have your policy numbers, or your homelow numbers, or your customer service numbers, so that when you do get someone who answers the phone, you've actually got a lot of information that they can look up on your behalf to get the conversation going.

Yeah, and you can do it while they're sitting in the car park waiting for someone or something like that. You can make the most of those little moments of downtime exactly.

Yeah, and you can do it while they're sitting in the car park waiting for someone or something like that. You can make the most of those little moments of downtime exactly.

And it just specially when you're sitting there thinking I've got to do it. And this is my newest real solution is stop thinking about it. Just get it done while you can. I'll forget about it all evaporate. So I think you know, being on the front foot with loyalty tax is really important. And the longer it drags on, the bigger the cost to you. And you know we're all on type budgets right now. Every dollar counts, So cut the excuses, do some research and make those phone calls, which will explain in a second.

And it just specially when you're sitting there thinking I've got to do it. And this is my newest real solution is stop thinking about it. Just get it done while you can. I'll forget about it all evaporate. So I think you know, being on the front foot with loyalty tax is really important. And the longer it drags on, the bigger the cost to you. And you know we're all on type budgets right now. Every dollar counts, So cut the excuses, do some research and make those phone calls, which will explain in a second.

Okay, we will take a break, and then we're going to talk about the information that you need to gather to make these calls. And then and then a role play. Very excited about this cana. We are talking about loyalty taxes today. This is essentially the idea that you are overpaying with a provider of some kind, whether it's your bank with your home loan, or your gas, your utilities providing your water, anything along those lines. Insurance gyms that you have been there for long enough that really you're kind of being left behind. There are better offers out there and you could getting a better price, And this is all about how to get that better price. For you to make that call though, to ring up and say I want a better deal, what information do you need to have in place? You mentioned before, just the basics of having your policy numbers and all those kinds of things, But surely you also need those some a bit of leverage to say I'm getting I could get a better deal over at this other place.

Okay, we will take a break, and then we're going to talk about the information that you need to gather to make these calls. And then and then a role play. Very excited about this cana. We are talking about loyalty taxes today. This is essentially the idea that you are overpaying with a provider of some kind, whether it's your bank with your home loan, or your gas, your utilities providing your water, anything along those lines. Insurance gyms that you have been there for long enough that really you're kind of being left behind. There are better offers out there and you could getting a better price, And this is all about how to get that better price. For you to make that call though, to ring up and say I want a better deal, what information do you need to have in place? You mentioned before, just the basics of having your policy numbers and all those kinds of things, But surely you also need those some a bit of leverage to say I'm getting I could get a better deal over at this other place.

Yes, you are spot on, So the more information you have the better. So preparation is key here. Don't just jump on the phone because you could end up wasting quite a bit of time. So what I recommend you do is go and jump on your internet banking and look at the interest rate that you are paying. It should be clearly marked. Also check and see if there is a discount that's been applied. I know in the past I've looked at my home loan rate and fookoh, I can't believe in paying that. But then I've looked a few lines down and there's actually a discount on that rate. So make sure you have an accurate amount of information about what you really are paying. Also things that are really important that you can use your advantage, obviously knowing how long you've been with your bank for your financial institution and how much you've paid off. And of course if you have a good repayment history, you've never defaulted, there's never been any late payments, any awkward phone calls. You've got a good standing, solid history and not only being a loyal customer but also being a very responsible, reliable one. Then you also want to go and have a low because you mentioned see what they're offering new customers and see what if there's any particular terms and conditions, because whilst it may look like a brilliant honeymoon rate, there could be some final details that it's until you go digging, you go, actually that's not really that good.

Yes, you are spot on, So the more information you have the better. So preparation is key here. Don't just jump on the phone because you could end up wasting quite a bit of time. So what I recommend you do is go and jump on your internet banking and look at the interest rate that you are paying. It should be clearly marked. Also check and see if there is a discount that's been applied. I know in the past I've looked at my home loan rate and fookoh, I can't believe in paying that. But then I've looked a few lines down and there's actually a discount on that rate. So make sure you have an accurate amount of information about what you really are paying. Also things that are really important that you can use your advantage, obviously knowing how long you've been with your bank for your financial institution and how much you've paid off. And of course if you have a good repayment history, you've never defaulted, there's never been any late payments, any awkward phone calls. You've got a good standing, solid history and not only being a loyal customer but also being a very responsible, reliable one. Then you also want to go and have a low because you mentioned see what they're offering new customers and see what if there's any particular terms and conditions, because whilst it may look like a brilliant honeymoon rate, there could be some final details that it's until you go digging, you go, actually that's not really that good.

Adeal because they can often be introductory rates because it might only be for say six months or twelve months, and you are talking in the case of a homelane, you're talking kind of twenty five plus.

Adeal because they can often be introductory rates because it might only be for say six months or twelve months, and you are talking in the case of a homelane, you're talking kind of twenty five plus.

Years exactly, and it may revert to something that's actually higher than what you are paying. So it's worth doing your research. Then of course you go and look at what the competition is paying. What's another institution offering to move your loans over to them? Have everything written down and make sure you've written it down so you can refer to it so you can say bank X y Z now offering this, bank ABC or offering that, so that they know you are serious, You've done your research, and this is not a conversation to be fobbed off. The bank would necessarily do that, but you go to come across a lot more. You're gonna be taken more seriously and you're gonna have a lot more productive conversation. So then when you've got all of that information, you can now call the bank and you are literally it's not all guns blazing, but you can say like you're a miss, like pitching yourself as I deserve more me time, like I want a better deal on my on my home loan. And that is when you get the balls rolling. And this is where you can see where it all lands.

Years exactly, and it may revert to something that's actually higher than what you are paying. So it's worth doing your research. Then of course you go and look at what the competition is paying. What's another institution offering to move your loans over to them? Have everything written down and make sure you've written it down so you can refer to it so you can say bank X y Z now offering this, bank ABC or offering that, so that they know you are serious, You've done your research, and this is not a conversation to be fobbed off. The bank would necessarily do that, but you go to come across a lot more. You're gonna be taken more seriously and you're gonna have a lot more productive conversation. So then when you've got all of that information, you can now call the bank and you are literally it's not all guns blazing, but you can say like you're a miss, like pitching yourself as I deserve more me time, like I want a better deal on my on my home loan. And that is when you get the balls rolling. And this is where you can see where it all lands.

Is it time?

Is it time?

It is time?

It is time?

It's time for the role play.

It's time for the role play.

That's wrong.

That's wrong.

Okay, I say you are the customer customer, and I am the bank employee, and I'm very nice because I've just come back from holidays as the bank employ I'm really getting into my character here, and you know what, I'm feeling refreshed, I'm recharged. I'm looking forward to this conversation with my customer.

Okay, I say you are the customer customer, and I am the bank employee, and I'm very nice because I've just come back from holidays as the bank employ I'm really getting into my character here, and you know what, I'm feeling refreshed, I'm recharged. I'm looking forward to this conversation with my customer.

Okay, I'll be gentle.

Okay, I'll be gentle.

Okay, ring ring ring, green ring, green ring ring, and I'll pick up quite quickly. Hello, welcome to the Homeland's Department.

Okay, ring ring ring, green ring, green ring ring, and I'll pick up quite quickly. Hello, welcome to the Homeland's Department.

This is Steve Hi, Steve, how are you today?

This is Steve Hi, Steve, how are you today?

Very well? Thanks? Can I start with your name? Please?

Very well? Thanks? Can I start with your name? Please?

Absolutely? Canna Campbell?

Absolutely? Canna Campbell?

Okay, Canna, just looking up and you're having a good.

Okay, Canna, just looking up and you're having a good.

Day, Cannah, I am.

Day, Cannah, I am.

Thank you for asking, and I've got your number here, which I won't give out on the phone for for security reasons. Let's just assume that we've done all the security checks. I just realized we could have a few security preachers here. But what can I do for you today, Cannah.

Thank you for asking, and I've got your number here, which I won't give out on the phone for for security reasons. Let's just assume that we've done all the security checks. I just realized we could have a few security preachers here. But what can I do for you today, Cannah.

So I've actually been a customer of this fine institution for about eleven years now.

So I've actually been a customer of this fine institution for about eleven years now.

I can see that you've been with us for a long time.

I can see that you've been with us for a long time.

Yes, yes, very loyal, and I am just doing a bit of a budget revamp and I'm looking to save some money because says you can tell the country things are quite tight right now. I just wondering about the interest rate that I'm paying. It looks like i'm paying this and I have been making all my repayments. I've been withins with you, but eleven years I've made extra repayments. My home is worth and I sorry I should have mentioned you should get the valuation of your home as well, and obviously you know how much you ope. But I've just done a quick check on the house dot com and my home's actually gone up in values of a lot of equity. My loan has come down because I've always made sure I stuck to my repayments and made ad hoc repayments here and there. So I'm doing really well. I'm a good customer. But what's got me going? And the purpose for this call is I think there are better interest rates out there, and I noticed on your website you're offering new customers fifty bases points less than what I'm currently paying. So can we have a chat, And if you can't help me, would you mind popping me through to somebody that can.

Yes, yes, very loyal, and I am just doing a bit of a budget revamp and I'm looking to save some money because says you can tell the country things are quite tight right now. I just wondering about the interest rate that I'm paying. It looks like i'm paying this and I have been making all my repayments. I've been withins with you, but eleven years I've made extra repayments. My home is worth and I sorry I should have mentioned you should get the valuation of your home as well, and obviously you know how much you ope. But I've just done a quick check on the house dot com and my home's actually gone up in values of a lot of equity. My loan has come down because I've always made sure I stuck to my repayments and made ad hoc repayments here and there. So I'm doing really well. I'm a good customer. But what's got me going? And the purpose for this call is I think there are better interest rates out there, and I noticed on your website you're offering new customers fifty bases points less than what I'm currently paying. So can we have a chat, And if you can't help me, would you mind popping me through to somebody that can.

Look. I'm certain I can help you, and you've clearly done your research. You must listen two podcasts.

Look. I'm certain I can help you, and you've clearly done your research. You must listen two podcasts.

Oh how do they thought that's one of my favorites.

Oh how do they thought that's one of my favorites.

Actually, oh, well there you go. Look, yes, I can see here you have been with us for eleven years and you're currently paying this amount, and look, I'm just gonna pop you on hold. I'll just go and see what I can do.

Actually, oh, well there you go. Look, yes, I can see here you have been with us for eleven years and you're currently paying this amount, and look, I'm just gonna pop you on hold. I'll just go and see what I can do.

Well, whilst you're at it, before you go, I did also notice that bank x y Z actually have an even better offer.

Well, whilst you're at it, before you go, I did also notice that bank x y Z actually have an even better offer.

Well, then, yes, you're getting out of it that quickly. I was trying to put you on hold straight away. I'm going to I'm going to go talk to my manager and see what I can do here in that scenario. Sorry, I've just stepped out of Steve's character for a moment. Is there a risk that they will say because retaining your customer is going to be their number one priority?

Well, then, yes, you're getting out of it that quickly. I was trying to put you on hold straight away. I'm going to I'm going to go talk to my manager and see what I can do here in that scenario. Sorry, I've just stepped out of Steve's character for a moment. Is there a risk that they will say because retaining your customer is going to be their number one priority?

Right?

Right?

Yes? Okay, so they're not going to say you can comfortably say look, I can see like Bank XYZ is offering this. There's no risk that good old Steve over here is going to say, on your bike, head on over to x y Z.

Yes? Okay, so they're not going to say you can comfortably say look, I can see like Bank XYZ is offering this. There's no risk that good old Steve over here is going to say, on your bike, head on over to x y Z.

Then well they're not going to say on your bike, but they're just going to say, no, we can't match that rate, and well we can't beat that rate.

Then well they're not going to say on your bike, but they're just going to say, no, we can't match that rate, and well we can't beat that rate.

Okay, So you've.

Okay, So you've.

Got nothing to lose from this phone call? Okay, and I am my apologies. I should have mentioned you do need. It does help a lot if you have the valuation of your home or property with you, and you can get it from for free, very quickly, on a website called onthhouse dot com dot Are you okay?

Got nothing to lose from this phone call? Okay, and I am my apologies. I should have mentioned you do need. It does help a lot if you have the valuation of your home or property with you, and you can get it from for free, very quickly, on a website called onthhouse dot com dot Are you okay?

All right? Okay, I'm coming back in here, Steve. You thanks for holding.

All right? Okay, I'm coming back in here, Steve. You thanks for holding.

There, Canna, Oh, thank you, no problem, had you go.

There, Canna, Oh, thank you, no problem, had you go.

I've had a chat and look, and yes, you've been with us for eleven years? Are you paying this amount? And look, while the interest rate that you quoted is an introductory price for new customers, we will be able to, based on the amount of time that you've been with us, lower your standard your variable rate by fifty basis points.

I've had a chat and look, and yes, you've been with us for eleven years? Are you paying this amount? And look, while the interest rate that you quoted is an introductory price for new customers, we will be able to, based on the amount of time that you've been with us, lower your standard your variable rate by fifty basis points.

How does that sound? That sounds great, and thank you so much. But I was actually looking at you hoping hopefully being able to beat the rate. It's great to match it, but I'd like it to be beaten because, as I said, across the road, they're offering a better rate than what you're reduce rates.

How does that sound? That sounds great, and thank you so much. But I was actually looking at you hoping hopefully being able to beat the rate. It's great to match it, but I'd like it to be beaten because, as I said, across the road, they're offering a better rate than what you're reduce rates.

All right, I'm just going to pop you back on hold, Canna, I do never want to be on the other end of a call from you because this is I thought, fifty basis points. I would have you across the line just there.

All right, I'm just going to pop you back on hold, Canna, I do never want to be on the other end of a call from you because this is I thought, fifty basis points. I would have you across the line just there.

So this is my point. Yeah, and this is a really important one. Don't settle.

So this is my point. Yeah, and this is a really important one. Don't settle.

Okay.

Okay.

Also that's marriage advice as well, coming from someone who has a few divorces, obviously, demgate relationship advice fer actually financial yes, relationship know, but don't settle. Don't go you know what, that's good enough for me, That's fine. Don't that's that's lazy. No, if you can still get a better rate somewhere else, continue on with that research and investigation. Don't just stop at that, because there is still I mean, as I've just demonstrated, you could potentially save by fifty basis points over the course of a twenty five year loan five years in fifty five thousand dollars and pay for your home loan two and a half years earlier. So hang on, don't just stop and settle at that that you know, the fifty basis points. If you could get it further, that discome bigot. Go go and apply it. But you would accept it with gracious open arms. But you go thank you so much. That's great, and they will typically tend to apply it reasonably quickly, and you don't there's not too much paperwork involt. However, you don't necessarily stop there. You keep going and you go and this is where you go and speak to a mortgage broker and say, hey, they did reduce my rate, They've done a good deal for me, but I'm still a little bit irritated that they haven't matched the rate or beat the competition.

Also that's marriage advice as well, coming from someone who has a few divorces, obviously, demgate relationship advice fer actually financial yes, relationship know, but don't settle. Don't go you know what, that's good enough for me, That's fine. Don't that's that's lazy. No, if you can still get a better rate somewhere else, continue on with that research and investigation. Don't just stop at that, because there is still I mean, as I've just demonstrated, you could potentially save by fifty basis points over the course of a twenty five year loan five years in fifty five thousand dollars and pay for your home loan two and a half years earlier. So hang on, don't just stop and settle at that that you know, the fifty basis points. If you could get it further, that discome bigot. Go go and apply it. But you would accept it with gracious open arms. But you go thank you so much. That's great, and they will typically tend to apply it reasonably quickly, and you don't there's not too much paperwork involt. However, you don't necessarily stop there. You keep going and you go and this is where you go and speak to a mortgage broker and say, hey, they did reduce my rate, They've done a good deal for me, but I'm still a little bit irritated that they haven't matched the rate or beat the competition.

Okay, And is there room to move on other things as well? Like you're calling up and you've just asked good old Steve just for a reduction in the rate, but say you were paying, say a mortgage package fee or something like that, can you kind of argue to get that down?

Okay, And is there room to move on other things as well? Like you're calling up and you've just asked good old Steve just for a reduction in the rate, but say you were paying, say a mortgage package fee or something like that, can you kind of argue to get that down?

Absolutely definitely. And again this is why mortgage broker is really good because they know those finer details that they'll know, Okay, you're paying a four hundred and fifty dollars annual fee or you're paying this card fee. They will go in and know those things which you may have not necessarily thought of when you're making that conversation because you're purely focused on, you know, the top line rate. So yes, these are things that can be definitely added in, and they're often the sort of last things that they will add in if they think they're going to lose you.

Absolutely definitely. And again this is why mortgage broker is really good because they know those finer details that they'll know, Okay, you're paying a four hundred and fifty dollars annual fee or you're paying this card fee. They will go in and know those things which you may have not necessarily thought of when you're making that conversation because you're purely focused on, you know, the top line rate. So yes, these are things that can be definitely added in, and they're often the sort of last things that they will add in if they think they're going to lose you.

Okay, all right, so Steve's back. Can are you still there?

Okay, all right, so Steve's back. Can are you still there?

Yes? I most definitely am.

Yes? I most definitely am.

Look you you really have done your research, and look, we can match the deal that you have seen elsewhere and which will be a further twenty basis point reduction. But you will need to give me a shout out on your podcast.

Look you you really have done your research, and look, we can match the deal that you have seen elsewhere and which will be a further twenty basis point reduction. But you will need to give me a shout out on your podcast.

Step No, probably, all right, there we go.

Step No, probably, all right, there we go.

I'm sure they're not going to attach conditions or something to it like that. I'm just like, oh, there's got to be a cat to you. I'm like, no, I don't think there would be. It would just be you have been a loyal customer, you have done your research, and that's the key that you have gone in there. You've shown them what you can get elsewhere. You've established the value of your property. You've established that you have built up additional equity in your property, and that you are deserving of a reduction. Other there is a chance that they might lose you as a customer.

I'm sure they're not going to attach conditions or something to it like that. I'm just like, oh, there's got to be a cat to you. I'm like, no, I don't think there would be. It would just be you have been a loyal customer, you have done your research, and that's the key that you have gone in there. You've shown them what you can get elsewhere. You've established the value of your property. You've established that you have built up additional equity in your property, and that you are deserving of a reduction. Other there is a chance that they might lose you as a customer.

And even if you do, hear no, if Steve I was to go, you know, what, I'm actually going to find it even better deal. I'm going to get in touch with a mortgage broker and or do my own research and find somewhere even better. Even though I've accepted your rate, you can still the answer is still not know because when you do go to sign with another bank, your original bank will call you from the retention team and you will have a senior management manager on the phone asking you why are you leaving us? What can we do to keep you? I actually had this conversation with a bank about six weeks ago, and I spent twenty minutes on the phone. She's like, what can we do to keep your business? You've been with us a long time. We really don't want you to go. And it was fascinating hearing her talk. And she said, the moment this situation is changed, we want to get you back on board and reshift your loan back over like it was really interesting. She was willing to do lots of things. Unfortunately, was too little, too late. It was the problem. But you know, even if you hear no, we're not going to do that, it's not until it comes to crunch time you'll you never know what rabbits can be pulled out of hats by the banking institutions.

And even if you do, hear no, if Steve I was to go, you know, what, I'm actually going to find it even better deal. I'm going to get in touch with a mortgage broker and or do my own research and find somewhere even better. Even though I've accepted your rate, you can still the answer is still not know because when you do go to sign with another bank, your original bank will call you from the retention team and you will have a senior management manager on the phone asking you why are you leaving us? What can we do to keep you? I actually had this conversation with a bank about six weeks ago, and I spent twenty minutes on the phone. She's like, what can we do to keep your business? You've been with us a long time. We really don't want you to go. And it was fascinating hearing her talk. And she said, the moment this situation is changed, we want to get you back on board and reshift your loan back over like it was really interesting. She was willing to do lots of things. Unfortunately, was too little, too late. It was the problem. But you know, even if you hear no, we're not going to do that, it's not until it comes to crunch time you'll you never know what rabbits can be pulled out of hats by the banking institutions.

If that conversation with good old Steve had gone in a different direction where okay, it's come back and offered you the fifty basis point reduction, right, and then you've said, look, that's great, thank you very much. I accept that, but can he go further? He goes off, comes back, and all of a sudden he says, look, that is the best we're going to be able to do. That is a really competitive rate that we've offered to you in recognition of the long time that you spent with us here at the bank, and we hope that that will be satisfactory to you. What do you say?

If that conversation with good old Steve had gone in a different direction where okay, it's come back and offered you the fifty basis point reduction, right, and then you've said, look, that's great, thank you very much. I accept that, but can he go further? He goes off, comes back, and all of a sudden he says, look, that is the best we're going to be able to do. That is a really competitive rate that we've offered to you in recognition of the long time that you spent with us here at the bank, and we hope that that will be satisfactory to you. What do you say?

Then? Again, you say thank you? And I mean that's a huge, huge interest rate savings.

Then? Again, you say thank you? And I mean that's a huge, huge interest rate savings.

Yeah, I did, I did. I did right by.

Yeah, I did, I did. I did right by.

You, Steve. But you still if you know that there are better deals out there, again like, don't settle you you you know it is your money, your life, and you're right to the best deal possible, so accept it. As I said, don't settle. Do research. And this is where a mortgage broker is so helpful because they can actually look at do a much deeper dive and they actually could say, look, your credit report is not as squeaky clean as you may have thought. You're actually on a really good rate, and if you were to save some money, it's actually a very very small amount of money and not worth the hassle of moving. Or they'll run the numbers for you. They will let you know, and this is the value of a really good quality mortgage broker. And you want to make sure that these savings really count. And I'm going to chime in my financial planning general advice here. When you see those mortgage repayments reduced from your new flashy lower interest rate, if you can make those savings count, don't let the lifestyle creep kick in or dominate and destroy those savings. Try if you can, if your budget allows, and obviously not everyone can, and it's been very tight for all of us, try and maintain at least some of those mortgage repayments so you can actually see that true impact act of your loyalty tax slashing.

You, Steve. But you still if you know that there are better deals out there, again like, don't settle you you you know it is your money, your life, and you're right to the best deal possible, so accept it. As I said, don't settle. Do research. And this is where a mortgage broker is so helpful because they can actually look at do a much deeper dive and they actually could say, look, your credit report is not as squeaky clean as you may have thought. You're actually on a really good rate, and if you were to save some money, it's actually a very very small amount of money and not worth the hassle of moving. Or they'll run the numbers for you. They will let you know, and this is the value of a really good quality mortgage broker. And you want to make sure that these savings really count. And I'm going to chime in my financial planning general advice here. When you see those mortgage repayments reduced from your new flashy lower interest rate, if you can make those savings count, don't let the lifestyle creep kick in or dominate and destroy those savings. Try if you can, if your budget allows, and obviously not everyone can, and it's been very tight for all of us, try and maintain at least some of those mortgage repayments so you can actually see that true impact act of your loyalty tax slashing.

Okay, and so finishing up that phone call, you would just accept it, and you don't actually need to kind of say, yeah, that's great, but I reckon, I can still get a better deal. You can just accept it and hang up the phone and come back and have another crack after you've done further research.

Okay, and so finishing up that phone call, you would just accept it, and you don't actually need to kind of say, yeah, that's great, but I reckon, I can still get a better deal. You can just accept it and hang up the phone and come back and have another crack after you've done further research.

Right exactly, except that because you want to bank those savings straight away, you don't cut your nose off to spain face. Fine, don't bother giving me that interests rate cut?

Right exactly, except that because you want to bank those savings straight away, you don't cut your nose off to spain face. Fine, don't bother giving me that interests rate cut?

I hate you, Steve.

I hate you, Steve.

The back of the garden. No, take it, work with it, build from there, and then then you've got great negotiating power. Go to another institution going, hey, my bank charges me this. Can you go in further with that? Because obviously it's a tighter cut.

The back of the garden. No, take it, work with it, build from there, and then then you've got great negotiating power. Go to another institution going, hey, my bank charges me this. Can you go in further with that? Because obviously it's a tighter cut.

Do you reckon? When your call comes into a call center, everyone's like, Canna's calling.

Do you reckon? When your call comes into a call center, everyone's like, Canna's calling.

Who's February?

Who's February?

They're hearing this week?

They're hearing this week?

Yeah, my number comes up on a big dashboard like flashing.

Yeah, my number comes up on a big dashboard like flashing.

One last final question. Because Steve has done you sent him on stress leave now after your call? Are the downsides to switching providers? And you kind of flagged one of the fact that the rate might not actually be as good as it looks, that it might be an introductory one. But is there an any other downsides we need to be aware of?

One last final question. Because Steve has done you sent him on stress leave now after your call? Are the downsides to switching providers? And you kind of flagged one of the fact that the rate might not actually be as good as it looks, that it might be an introductory one. But is there an any other downsides we need to be aware of?

Yes, there are lots. So sometimes you know, if you do refinance to a new institution, or even have to accept a certain condition of your existing bank. Sometimes they will reduce limits if you have a large amount of money in an officet account or a regional facility. As part of the terms and conditions, they might say, look, you've got all the sexist funds here, can we reduce the limit. So this is again why a mortgage brokers is very, very helpful. Also, I had a situation where this was the refinancing call from six weeks ago. The new internet banking is not as intuitive, it's very clunky, it's very eighties, and it is a little bit frustrating, but obviously the benefits are there so you and then of course there are all those other can you know, all the bells and whistles sometimes actually can end up costing you more, but some people are happy to spend more because it helps them stay focused and paying off their homelan and all those wonderful budgeting tools that often come with internet banking these days with your home and they can be very valuable, and you can lose those insights. So there are definitely things you can potentially disadvantages in refinancing, but a mortgage broker will talk you through these things before you sun the dotted line.

Yes, there are lots. So sometimes you know, if you do refinance to a new institution, or even have to accept a certain condition of your existing bank. Sometimes they will reduce limits if you have a large amount of money in an officet account or a regional facility. As part of the terms and conditions, they might say, look, you've got all the sexist funds here, can we reduce the limit. So this is again why a mortgage brokers is very, very helpful. Also, I had a situation where this was the refinancing call from six weeks ago. The new internet banking is not as intuitive, it's very clunky, it's very eighties, and it is a little bit frustrating, but obviously the benefits are there so you and then of course there are all those other can you know, all the bells and whistles sometimes actually can end up costing you more, but some people are happy to spend more because it helps them stay focused and paying off their homelan and all those wonderful budgeting tools that often come with internet banking these days with your home and they can be very valuable, and you can lose those insights. So there are definitely things you can potentially disadvantages in refinancing, but a mortgage broker will talk you through these things before you sun the dotted line.

Okay, I think we've done a fairly comprehensive job of going through loyalty taxes. And I didn't realize I was hoping I would get to be the customer in the sorry, so I was not prepared to be Steve today. But look, you know what, I think we've delivered a valuable blueprint for those kinds of conversations. If anybody wants further information from you, where do they find you?

Okay, I think we've done a fairly comprehensive job of going through loyalty taxes. And I didn't realize I was hoping I would get to be the customer in the sorry, so I was not prepared to be Steve today. But look, you know what, I think we've delivered a valuable blueprint for those kinds of conversations. If anybody wants further information from you, where do they find you?

The best basic in contact with me is actually at Canna Campbell Official because unfortunately in my Instagram account Sugar ma My TV has been jammed up with the Erotic variety messages, so I can't actually look at my inboxes. So if you need to get a hold of me, message me through Instagram at Canna Campbell Official, not Sugar Mama TV because I just can't bring myself to look at my inbox.

The best basic in contact with me is actually at Canna Campbell Official because unfortunately in my Instagram account Sugar ma My TV has been jammed up with the Erotic variety messages, so I can't actually look at my inboxes. So if you need to get a hold of me, message me through Instagram at Canna Campbell Official, not Sugar Mama TV because I just can't bring myself to look at my inbox.

Then alright, If.

Then alright, If.

Anyone has any advice, let me know how to get rid of this problem.

Anyone has any advice, let me know how to get rid of this problem.

Cheapers and you can hear me every day with Sean Aylmer on Fear and Greed, daily business news for people who make their own decisions. Thank you for listening. To how do they afford that? Remember it hit follow on the podcast, and the very best thing that you can do is tell somebody else, send them the link to this episode and spread the word about how to do they afford that? Thank you very much for your company. Join us again next week.

Cheapers and you can hear me every day with Sean Aylmer on Fear and Greed, daily business news for people who make their own decisions. Thank you for listening. To how do they afford that? Remember it hit follow on the podcast, and the very best thing that you can do is tell somebody else, send them the link to this episode and spread the word about how to do they afford that? Thank you very much for your company. Join us again next week.