If life is a journey full of twists and turns, then marriage and mortgage are the steadfast vehicles that will carry you through, according to Mortgage Choice broker Joanne Nugent (pictured above).
Having recently celebrated her 30th wedding anniversary coinciding with the same length of time as a “standard” home loan, Nugent reflected on the similarities between her enduring marriage and the world of mortgages.
“They provide the stability, commitment, and shared responsibilities that propel you forward, ensuring you reach the destinations of love, security, and a place to call home,” she said.
Over the past three decades, Nugent and her husband embarked on various real estate ventures, including purchasing and selling four properties, as well as experiencing the joys of renting. They also raised three boys, who have now blossomed into independent young men, and expanded their family to include four dogs and a cat.
Picture of buying the land for the couple’s ‘forever’ home in Samford 2005
Through the dynamic journey of life, Nugent discovered that just as circumstances change, so should one’s approach to home loans.
“Thirty years is a long time. I would never have thought we’d end up where we are now. In either case, it doesn’t matter what your plan is upfront, things rarely go to plan,” she said.
“That’s what I say to my younger clients: life changes incredibly over time and so should your loan.”
Nugent’s comments come at a time where many borrowers are facing the unique situation of interest rates rising by 3% to 4% in just over a year.
As these borrowers prepare to scale the mortgage cliff when they roll off their low fixed-term rates, Nugent reminds them that they could look forward to “equity growth in the future”.
“If you bought pre-pandemic or early in the pandemic, you’ve made a lot of equity. We want house prices to go up because that’s how we build wealth. I mean, that’s how we’ve built our wealth over 30 years,” she said.
Picture of the start of Joanne Nugent’s first swimming pool 2006
Sticking through thick and thin
With rates rising and banks forecast further increases, homebuyers face some tough decisions.
A recent Canstar survey found that nearly half of Australian mortgage holders (47%) have made changes to their mortgage.
While most are reducing or stopping extra payments or tapping into redraw or offset funds, some are choosing to sell their home (7%) or investment property (4%).
Nugent said she remembered their first home purchase, secured with an interest rate of 10% at the time. Their first home in Kallangur boasted only a modest collection of furniture. Today, they reside in a significantly larger home adorned with sentimental treasures, such as every piece of artwork created by their boys.
In the following years, the couple upsized their home, and consequently, the size of their home loan, on three separate occasions. These expansions involved both construction projects and recent renovations.
Consequentially, despite her aspirations, they still have not fully paid off their loan. But even so, Nugent’s mortgage remained, shifting with her life.
“I love doing loans for first home buyers and those refinancing for the first time because I feel like I’m really adding value. There’s so much uncertainties and anxieties but it’s all about providing them with options that they never knew they had, and that comes with experience,” she said.
“I always provide them with the worst-case scenario and then plan A, plan B, and plan C because I’m a real overthinker – my husband can tell you that. It’s so important for clients to review their loans regularly and we as brokers can guide them to meet their home ownership goals.”
Image of the family’s outback road trip in 2011
Having your best interests in mind
Like life itself, marriage has its ups and downs. Sometimes you need an objective third party who has your best interests in mind to help you see things clearly, whether that be a friend, family, or a counsellor.
Nugent said that mortgages, too, are a journey and urges brokers to be that trusted confidante for their clients.
“Many people keep their financial information close to their hearts and once they’ve given all that to you, they’ll tell you everything. I have clients that open up to me about what’s going on in their life and marriage or with their kids or pets, and I think that’s really special to me,” she said.
“Just like I draw on my experience of marriage and life to offer my perspective, I know I can make my service personal by thinking about the lessons I’ve learned as a homeowner throughout the years.”
“I feel like I’m married to them too in a lot of ways.”
Picture of Joanne’s family all grown up in 2019
