With the economy slowing, inflation pressures easing and household expenditure diving, starting the new financial year with hike number 13 could well prove to be an ominous sign, writes Ian Verrender.
Unpopular opinion, but if future generations are going to be able to own a home in the lands of their parents, grandparents, and great grandparents, rates need to continue to rise and debt costs need to come way up so people start using money instead of debt.
Does Australia have long long term mortgages like America’s 30 year? In canuckistan over 90% of mortgages are 5 years or less because a 10 year has a couple percent premium and by the time you hit 20 years you were looking at like an 8% rate when you could get 5 years for like 2%.
If Australia is similar to canada in that regard, the real scary part will be when the fixed rate mortgages taken out during the pandemic reset in about 2 years.
Unpopular opinion, but if future generations are going to be able to own a home in the lands of their parents, grandparents, and great grandparents, rates need to continue to rise and debt costs need to come way up so people start using money instead of debt.
Does Australia have long long term mortgages like America’s 30 year? In canuckistan over 90% of mortgages are 5 years or less because a 10 year has a couple percent premium and by the time you hit 20 years you were looking at like an 8% rate when you could get 5 years for like 2%.
If Australia is similar to canada in that regard, the real scary part will be when the fixed rate mortgages taken out during the pandemic reset in about 2 years.
Australian mortgages are usually over a 30 year term.
So the interest rate is fixed for 30 years, or it takes 30 years to pay it off?
Variable rate, calculated daily, over a 30 year term
2 years seems to be the standard here for fixed terms. We’re expecting that cliff edge any day now.