Protestantism

» redback - the Diff

People today on 7.25% have no insight into "the old days" where the mortgage interest was say 14% to 15%. Houses WERE cheaper but wages were also much lower. But today's loans are like right out of a game of monopoly. $AUD400,000 only buys a basic house in my working class suburb.

Fixed interest is obviously best now but many existing borrowers, strugglers on variable rates...need to pay a fee - $1000 - or so to swap. Our Treasurer-in-Training is trying to make the swapping processing more flexible and free.

This early payment penalty. We can't avoid it here...but read the fine print. Mine was based on a % of the final payout. So, I paid all bar $100 before seeking the payout figure and before seeking the appointment they want. In any event, paying fortnightly and above the minimum payment way easily offsets the early fee...but not as you say in the first year or two.

Tis the finances...not the emotional costs re renting. Your sister is up for removal costs etc that need to be factored in. Note I did not say it ALWAYS is cheaper.

All I can say after 30 years of mortgage - a time with 2 mortgages - tis a great relief to be free. Otherwise, I'd still need to be at work. And I do try to sell 'discipline', 'budgeting' and other life skills to our clan's emerging generation.

-- posted by redback