Share
8th November 2017| Posted by: Phil Haley
RBA holds rate again
The most of expert commentary indicates that it will be late in 2018 before we will be asked to pay more for the mortgages we hold on our homes. However the Banks have seemingly ignored this and live by their own rules now charging seemingly whatever they like. Yes APRA have made things tougher for the banks but this is largely because home owners have exceeded reasonable limits for interest only repayments and the banks, keen to do business did not say no. Capacity to borrow has nothing to do with this because using interest only for say 2-5 years only reduces the amount the banks will allow people to borrow. However those same banks are happy to push credit card limits and personal loans or car loans at much higher rates to home owners which can only cause financial stress sooner or later. We should not rely on capital gain to pay our homes off in 20 years. We should be aiming to hold our homes particularly if they are in Sydney Metro forever and use the equity if genuine to extend our investing opportunities.
We discuss this at every Seminar we conduct.
All are welcome to attend.
Just call me.
Phil Haley 0412 355 6708
shaley@bigpond.net.au
