#variable rate

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In the US, the overwhelming majority of mortgages are fixed for 30-year terms. ...Well over 90 per cent of American mortgages are on some form of long-term fixed basis.

In Australia, the opposite has historically been the case, with around 85 to 90 per cent of mortgages being of the variable variety and at the mercy of rising interest rates.

There is a long list of reasons why Australia doesn’t have long-term fixed mortgages like the US, such as a historically far less developed long-term capital market, at times far higher interest rates than those payable on variable and significantly lower bank profits on these types of loans.

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Simply put you know what you owe in interest throughout the course of your 15-30 year mortgage. The However becomes the current market condition. Ask your lender what is best for you at the time you are buying…

The Good, Bad, and Ugly of an Interest Only Mortgage

An interest only mortgage can appear to be a very attractive offer at the onset. However, it can also be a disaster waiting to happen for many borrowers who don’t completely understand what awaits them five or ten years down the road.

About ten or twelve years ago, a period known as the Great Recession caused havoc for many homeowners. One of…