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Owning your own home outright is the Australian dream. There’s simply no better feeling than
getting your finances under control and paying down your mortgage – especially if you
manage to do it earlier than you first thought. It sets you free from financial anxiety and allows
you to use your extra income to live your ideal lifestyle.
Unfortunately, many Australians are currently struggling to pay off their mortgages. Australia
has one of the highest levels of household debt in the world, and following the economic
impacts of the pandemic, the number of Aussies struggling to pay off their mortgage has
doubled.
One of the reasons for this is that the big banks don’t have your best interests at heart. Many
homeowners have had the wool pulled over their eyes, and they don’t realise there is a better
way that will help them slash years off their mortgages and save hundreds of thousands of
dollars in bank interest. While you may believe you have an open and honest relationship with
your current bank, I can guarantee they’re holding something back!
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I’m Craig Jones, and I have over 15 years’ experience within the financial services industry -
spanning across Mortgage Broking, Financial Planning, Superannuation and Private Banking. I
spent more than a decade working inside the Big 4 banks and international investment banks,
where I witnessed corporate greed on a scale you wouldn’t believe. I grew tired of
good-hearted, hard-working Aussies like you being taken advantage of – so I decided I’d had
enough... and I quit!
I saw a gap in the market and went out on my own and founded Jones Financial Group, with the
goal of ensuring every Australian has access to the best possible financial advice, products and
services - without a self-serving banker or lazy broker withholding information or leading them
down the wrong path and blaming others for their delays and mistakes.
Since then, I’ve received some amazing feedback from Australians who really appreciate my
honest, client-first approach. After hearing their feedback, I decided to write this eBook – to get
some of the learnings I picked up from the Big banks out there in the open, so you can have
access to them too. My hope is that you use these jealously guarded industry secrets to slash
years or even decades off your mortgage and potentially save yourself hundreds of thousands
of dollars in the process.
Here’s what you’re about to discover:
EXPOSED: 5 little-known banking
secrets which will skyrocket your
wealth (the Big 4 Banks will do almost
ANYTHING to stop this from getting
out)
Where to find your hidden equity
and how you can use it to add
thousands of dollars to your income
every year
Why 85% of brokers withhold
information that could be costing
you tens of thousands of dollars on
your home loan each and every year
What you should never EVER do
unless you want to throw away
hundreds of dollars down the drain
every single week
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1. Don’t go directly to the bank
When you’re looking for a home loan, you could go to a finance broker or a bank. While a bank
will only offer you its own products, a finance broker is an industry expert who will take the
guesswork out of finding the mortgage product that suits you and your needs.
Big Bank sales staff are tasked with dollar-based incentives, and they even get rewarded with
all- expenses-paid overseas trips for pushing products and services to everyday customers. If
you go directly to the bank, you won’t have the option to choose from a selection of loans
provided by different lenders, so you could miss out on the loan that best suits your individual
circumstances.
For example – when is the last time you went into CBA for a loan and they told you another bank
down the road had a better product which would better suit your needs, and recommended
that you go there instead?
The Big 4 Banks will tell you almost anything to make you feel like they are ‘trustworthy’... yet
legally they can sell you a product which isn’t in your best interests and pocket more profits
from your mistakes.
2. Don’t trust the bank
The constant questions and scrutiny over ethical behaviour of the big banks fill newspaper
headlines day-in and day-out, year after year.
They have engaged in unacceptable behaviour, including rigging one of Australia’s key interest
rate markets, robbing the dead, giving dodgy advice, refusing insurance claims, deceiving the
regulators, forging documents and breaching laws that stop people laundering money or
financing terrorism.
For example – have you ever received a letter from the bank stating they have refunded you for
a calculation error or for over-charging you? Would you have ever known otherwise? How much
more could they owe you?
Such examples include:
$1Billion in fees charged for ‘no service’
$16Million in policy refunds to 140,000 ‘ineligible’ customers
‘Junk Insurance’ pushed to 65,000 students, pensioners and unemployed
Banks accused of breaching responsible lending laws
Bank admits it failed in its obligation to disclose breaches of consumer credit rules ‘honestly,
efficiently and fairly’
$700Million fine for anti-money laundering, terrorism financing law breaches
Major Bank refunds $5Million, another Major Bank fined $7Million - both for overcharging interest
on home loans
Offset Error: Major Bank refunds $2Million due to ‘account linking’ errors
I’ve worked in banking for more than a decade, and I can tell you firsthand there is a lot of greed
within the industry. The Big 4 banks in particular have a huge hold on the Australian home loan
market, and they’ll do what they can to stop secrets like these getting out.
3. You might see the bank as a trusted adviser and the bank
wants you to keep it that way
– they don’t want people thinking the banks are ripping them off.
Chances are you heard about the Banking Royal Commission which has brought to light many
breaches, scandals and ways the Big Banks have ‘ripped off’ or ‘gouged’ everyday Aussies.
The coverage is far and wide, from lending to insurance, savings to super... and affects
hard-working Aussies who are taken advantage of by Big Banks and pushy sales staff.
Example – have you ever basically been refused service by a bank teller and ‘pushed’ to use
machines and ‘self service’ your banking? Well, you guessed it, this impacts the bank branch
targets and profits, so they don’t want a customer getting in the way of their bonus incentives or
that all- expenses-paid overseas trip! Tell the same staff member you would like a home loan
and they will almost certainly do a backflip and roll out the red carpet to invite you back into the
branch for the deluxe experience. Personally, I love the technology, but most people don’t
understand the ‘why’ behind the seemingly innocent refusal of service at a branch.
4. Banks don’t want you to know you can get better deals
With so many home loan options out there, the Australian mortgage market can be
overwhelming. Unfortunately, banks realise this. They often creep up their mortgage lending
rates each year to syphon away your hard- earned money, and they put the rate increases
down to vague reasons such as an ‘increase in operational costs’.
Given the banks take a larger slice of the pie each year, it’s important to review your mortgage
rate regularly – this will ensure the loan you signed up for is still the best option for you, so you
maximise your savings each year.
The Banks use their ‘big brand’ and ‘bottomless budget’ marketing to lure in potential loan
customers – and then pushy sales staff use finely crafted tactics to stop customers shopping
around with other lenders for a different option or a better deal.
Unfortunately (and sadly) once you have your loan in place, it’s not until you write the bank a
‘breakup letter’, or lodge a discharge request, that the Big Banks offer you a better deal, discount,
or some other form of incentive to stay with them. All of a sudden, you are one of their ‘highly
valued customers’.
Have you experienced a Big Bank trying to buy your loyalty, or suddenly offering you a better
deal at the 11th hour of breaking up with them?
How much is this really costing you on top of all the money you have already tipped the bank?
5. Banks want to push you towards a home loan comparison
site - which may not give you the best deals
Comparison sites are actually full of paid advertising, sponsored content and sponsored articles.
This means you could be falling for the same ‘big brand’ and ‘bottomless budget’ marketing
tricks mentioned above. Some comparison sites offer limited options and will even refer you to a
specific lender or broker which is actually owned by the Big Banks!
The worst part about all of this is the lack of transparency - you’re not told about it, nor do you
see the money exchanging hands behind the scenes. You simply don’t realise you are a small
cog in the ‘bottomless budget’ marketing machine controlled by the Big Banks.
Example – Have you ever read an ‘article’ or ‘blog post’ on a comparison site or even what
seems like a ‘news site’, and then had a barrage of loaded content and ads which seem to
directly relate to what you just read about? Sometimes even the colours and language they
use are the same. Seems a little suspicious, right?
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Finding the best home loan can be a tough task when there are so many different options on
the market. A mortgage broker can get you the best deal, but there are a few things they may
not tell you which you’ll need to factor in if you have a home loan in 2021.
Given your home loan will likely be hundreds of thousands of dollars, the cost of missing the best
mortgage option could be an extremely costly mistake for you and your family.
First of all, you need a broker who is highly skilled across multiple banks, situations and
scenarios, with industry contacts and KNOWS how to find you a better deal with the correct
structure for your individual situation and goals.
Most brokers and banks have it wrong! They focus on rate shopping, or searching for a magic
pill or shiny new object – and continue to lose money and tip the banks without understanding
why they can’t seem to get ahead.
My Broker always recommends a Major Bank... why?
Around 85% of brokers have never worked for more than two of the Big 4 Banks prior to
becoming a broker. These brokers have previously only ever worked as a ‘branch lender’ at the
Big 4 bank, and not surprisingly, are usually trained and managed by someone who has no idea
about lending or loan structuring. They have always been told exactly what to do and how to do
it without deviation, using very specific instructions and procedures. The problem is, these
procedures are carefully crafted to extract money for the benefit of the bank, and not for the
benefit of the customer.
Because most brokers are just previous bank branch lenders, they only know how to write loans
for the one bank they worked for, and struggle to provide any other options or advice. They will
blame the banks and anyone else to remove accountability from themselves and to ensure the
customer thinks they are ‘doing everything they can’ and that ‘the broker is looking after me’.
Even more concerning is that after these ‘soon- to-be-brokers’ leave the bank, 80% of them go
and work for a major Brokerage which is partly or wholly owned by a Major Bank. It’s a win-win
scenario for the Major Bank!
Back office operations and admin for most Australian brokerages takes place offshore. This is a
money saving tactic and a cheap way to hire foreign admin staff instead of hiring Aussies, who
are a lot more expensive. This has turned into a booming industry for expats setting up call
centres in these regions and marketing cheap services to Australian businesses. Not
surprisingly, most major banks also have their operations and admin offshore.
Jones Financial Group and its operations, employees and contractors, are all Australian
based and paid in AUD, to ensure the local community benefits and you get the best
possible individualised service on the market.
We use bank-grade security and offer access to over 60 different bank options, which is
the highest available panel of banks on the market today. We do this because we
understand your situation is unique, and requires a custom approach - so we have more
options to suit and tailor a product that is perfect to your scenarios.
The Fast 5 Mistakes you might hear from 85% of brokers:
1. Credit cards are a foolproof way to pay off debt
2. Setup multiple 'buckets' with multiple banks
3. Debt recycling helps you build wealth
4. 'Interest only' will help you have more cash flow in the long term
5. You should fix your interest rate - it's cheaper
"If you go directly to the Bank for a home loan, they aren't legally obligated to act in your
best interests. Bank staff are also tasked with sales incentives to maximise profit for
the bank. You do the math... "
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If your current mortgage broker hasn’t told you this, you should fire them on the spot. As harsh
as that sounds, using your equity wisely is one of the most valuable wealth building secrets in
the property game today.
What is equity and how much do I have?
Many homeowners don’t realise they are sitting on a large amount of money in the form of
equity in their home. Equity is one of those terms everyone has heard, but not a lot of people
understand. Equity is the difference between the value of your home and the amount you owe
the bank on your mortgage.
You can calculate your equity by subtracting your home loan balance from your home value. As
an example, if your current home is worth $700,000, but you still have a mortgage balance of
$250,000, your equity is $450,000.
If you are already a homeowner, chances are your property has risen in value and built hidden
equity - this means you’ll be able to refinance your mortgage. When you refinance at a lower
interest rate, you can potentially add thousands of dollars to your annual income because you’ll
reduce the amount of money you are paying to the bank.
If your property has risen in value and you’ve uncovered the resulting hidden equity, you can
put this equity to good use, without needing to spend your hard-earned money manufacturing
equity by renovating your home to increase its value.
How to grow your equity
If you calculate your equity by subtracting your loan balance from your home value, the two
simple ways to increase your equity are to either decrease your loan balance or to increase
your home value. You might be paying off your loan at the fastest possible rate, which would
leave little wiggle room to increase your equity with the first of these two options. If that’s the
case for you, your best option may be to increase the value of your home.
Your home value will probably experience capital growth according to the property market and
the area your home is located. While you can’t change these factors once you’ve purchased
your home, you can still add value through maintenance or renovations to increase the overall
amount your home is worth. By raising the value of your home, you will grow your equity quickly
and take advantage of this by looking toward other investments.
You can use your equity to buy property or shares
You can generally access up to 80% of your property value and avoid paying lenders mortgage
insurance on your home loan. After you’ve calculated your usable equity, you get the fun of
deciding what you will do with it.
You can use your equity to put a deposit on a second property and use this as an investment
property to help pay down your mortgage. If you have a large amount of equity, you could split
this across two properties, or a combination or property and shares, depending on what is best
for your individual financial circumstances.
If you use your equity wisely, it could generate you thousands of dollars in additional income
each year. Whether the income comes from rental streams from an investment property, or
dividends from income shares, you’ll be able to use this money to pay down your debt faster,
speed up your wealth generation and build your equity back up again.
Warning: Don’t use your equity like a giant credit card!
Unlocking your equity can be an amazing wealth generation machine and deliver you more
income streams, but it’s important to stay disciplined – if you are using your equity to invest, be
sure to keep it for investment purposes only. Too many homeowners discover their hidden
equity and treat it like a giant credit card, ringing up thousands of dollars in personal expenses.
As well as diminishing the money you can invest, this also creates headaches at tax time when
you try to figure out how much of your equity was used to invest and how much was used for
your personal expenses instead.
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WANT TO THROW AWAY HUNDREDS
OF DOLLARS EVERY WEEK)
The Australian property and mortgage markets have so many variables that it can be hard for
everyday Australians to keep up with them all. There are many mistakes you could make, and
it’s important not to be too hard on yourself if you make one. That being said, not all mistakes
are equal, and some come at a greater financial cost than others. Here are my top 7 mistakes
you should avoid:
1. Don’t apply straight through the bank
Or you may fall victim to their finely crafted tactics which are designed to stop you shopping
around for a better deal. Go through an experienced broker instead, because they should have a
strong panel of options to find a tailored and appropriate solution for your needs and goals.
2. Don’t restrict your search to only one bank
Get at least 3 different lender comparisons and make sure you get the pros and cons of each –
don’t go with the first one you find, regardless of how enticing it may seem.
3. Don’t apply through a home loan comparison site
These sites don’t take into account your specific situation, and even worse, they are often
controlled by the big banks – they won’t give unbiased advice on what is possible for you and
what steps you need to take.
4. Don’t pick a dodgy or lazy broker
You need a broker who is highly skilled, has industry contacts, and KNOWS how to find you a
better deal.
You will come across some brokers who are proud to announce they simply charge a fee for
their services, instead of earning a commission from the bank. This sounds great in theory, but
there’s a catch.
So far, the majority of these business models have gone bust as they are not financially viable
and the brokers become motivated to ‘churn’ numbers instead of being fully invested in the best
outcome for their clients. Refunding commissions adds another layer of cost that most
brokerages can’t afford, especially given the high cost of compliance and processing.
5. Don’t rely on Awards and Online Courses
A lot of brokers hide behind perceived ‘awards’ or ‘award nominations’, but in most cases these
are meaningless and amount to nothing more than a chance for brokers to network and pat
each other on the back over drinks. If your broker is too busy attending functions, playing golf, or
telling you how good they are or how many awards they have won, rather than actually working
for you to engineer the best possible solution for your needs – it may be time to find another
broker.
An increasing trend is brokers offering paid courses. However, what you are actually getting
when you sign up to these is a one-size- fits-all, self-paced online module. As well as being
taught a cookie cutter approach that won’t give you any personalised advice, chances are you
will end up completing around 25% of the course before finding something better to do anyway!
6. Never underestimate the cost of purchase
This is one thing you should never do when you apply for a home loan. Too many Aussie
homeowners think they know the real cost of owning a home, without seeking sufficient financial
advice or research to cover their bases. As I noted earlier, there are a wide array of costs
associated with your home loan, ranging from up-front costs to ongoing costs. It is all too easy to
underestimate the amount you need to pay in lenders mortgage insurance, stamp duty, legal
costs, application costs, maintenance fees, inspection fees… the list goes on. Many of our
customers have received incorrect information from bankers who don’t understand the whole
process or the real cost of purchase.
These costs add up very quickly, so make sure you understand your budget well and have
enough to cover unexpected costs too. There is simply no bigger nightmare than being
thousands of dollars short with settlement day fast approaching. Settlement day should be an
amazing and exciting moment for you and your family, not an anxiety-provoking disaster!
6. Don’t risk going it alone - ask an expert for help
There is so much going on during the home ownership process that you are likely to miss
something. Unfortunately, that’s the way the banks want it, because they can continue earning
money from unsuspecting Australians who don’t have the time or know-how to work the system.
That’s what makes it so important to seek expert advice. You need a professional who can help
you assess what options are best for your situation, rather than playing the guessing game and
renegotiating directly with the banks. With a passionate and knowledgeable financial
professional on your side, you’ll get peace of mind knowing you have the best possible loan
structure so you can save yourself thousands of dollars and use this to enjoy the lifestyle you
really want. Plus, instead of getting a headache trying to navigate all the different costs, you can
put your feet up and relax while they do all the due diligence for you!
BOOK YOUR FREE,
NO-OBLIGATION 30-MINUTE
HOME LOAN 1 HEALTH CHECK'
(VALUED AT $397)
Thank you for taking the time to read my eBook. I hope you found the secrets I've shared to be
both thought-provoking and insightful - and that you can use them to save yourself tens of
thousands of dollars off your home loan!
If you truly are serious about discovering exactly how much money you can save, then I can
help - and it won't cost you a cent. For a limited time only, my team and I at Jones Financial
Group are offering you a FREE, no-obligation 30-minute Home Loan 'Health Check'.
During your free Home Loan 'Health Check', we'll do a deep dive into your home loan and reveal
just how much money you could save by refinancing and restructuring your mortgage. There is
no obligation for you to go ahead with our services after speaking with us, if you don't feel we
are the right fit. It's just a chance for us to introduce ourselves and provide some value to you up
front - we want to ensure everyday Australians can hold onto their hard-earned dollars and
enjoy their ideal lifestyles for years to come!
However, we only have time for a strictly limited number of consultations each month, so you
must be quick to avoid missing out. If you are ready to discover how you could potentially save
tens of thousands of dollars on your home loan, simply click the link below now to book your free
Home Loan 'Health Check'. You won't get an opportunity like this again!
CLAIM YOU 30-MINUTE HOME LOAN 'HEALTH CHECK'