The 30 second home loan….

What do you get from a 30 second home loan? Indigestion.

After watching ‘The Founder’ (the story of McDonalds) and how the world was introduced to the 30 second burger, I began to wonder what this time saving is actually costing us.

In the world of home loans, the psychology of buying property is complex and should not be rushed. It’s a fact of life, homes come with far more emotional weight than any other investment we make. We need to be much more careful with our choices.

I understand the ‘get them in and get them out’ approach for food, as a billion dollar franchise was built on this simple strategy alone. But since when do you wake up on a Thursday and tell your better half we need to buy a home on Saturday, but we don’t know if we can get finance? So off to bank on Friday to try and push it all through in one day……  no strategy, no structure, just ‘fast finance’ and a McMortgage.

You know you’re going to buy months in advance  

You are mentally in the market 6 to 12 months prior to a property purchase in most cases, so why the rush at the last minute? What do you forgo if you rush to get an approval and what are the risks? What have you sacrificed for your light speed burger approval?

In many cases it’s good solid advice!

When it comes to the biggest financial decision most Australians make, are we happy to just take the ‘drive thru’ approach to our finances?

In a world where we value everyone’s opinions, well Facebook, Insta and Snapchat all tell me we do….. why are we not seeking the right advice on our home loans? Advice that extends past rates, and basic loans from the big 4, which are still writing over 75% of new loans?

Long gone are the days of the well qualified bank manager to advise you on your financial needs. So with over 55% of Australians now going to the 11,000 plus brokers (and growing), why wouldn’t you use a broker over a banker?

Drive thru or Nobu?

If the bank is looking to get you in and get you out fast and sometimes with an incorrect ‘order’, the role of  a good broker is to guide you through the myriad of choice (with over 400 lenders and 1000’s of loans). They play a critical role in advising you on what you can afford, strategies for your loans and the importance of getting them structured correctly. It’s like a great a la carte restaurant experience where you will be taken through the menu with careful considerations of your  personal palette preferences. In addition to the main meal, wines and other complimentary additions to your experience can be added just like when a great broker recommends a range of independent specialists from accountants, financial advisers, risk specialists etc.

So, stop it! Stop buying into the hype of fast finance. STOP IT.

Approach your finances with the care and consideration your most important financial decision deserves. Don’t just speed through the ‘drive thru’ when your finances deserve Nobu.

Jason Back, Managing Director, The Australian Lending & Investment Centre (ALIC)

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The Australian Lending & Investment Centre (ALIC) is an award-winning finance brokerage which assists clients in achieving their investment goals and building wealth. ALIC specializes in assisting investor clients to structure their loans correctly in line with their wealth creation strategy.

Jason has over 24 years’ experience in the finance sector, having worked in senior sales and distribution and management roles for ANZ and having provided financial advice and services on behalf of financial planning, equity trading platforms, private banking, lending and retail distribution firms.

Jason has a passion for education and improving the ‘financial fitness’ of the Australian public. He has conducted hundreds of seminars over the past 20 years, his key intent being to encourage Australians to better look after their finances to guarantee independence into retirement.

1 reply
  1. David Banks
    David Banks says:

    Great article Jason, I wish more of the market took the time to see the big picture for home owners and investors alike. Your passion for education and benefiting the financial outcomes of your clients is not lost here.

    Keep up the awesome work.

    Reply

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