The hidden cost of extending your mortgage back to 30 years

  • The hidden cost of extending your mortgage back to 30 years

    Updated on Investing

    The federal government has tried (via 2009 legislation and later instructions to banks from APRA, the Australian Prudential Regulation Authority) to ensure that mortgage borrowers will be able to service their loan and cope with any future interest rate rises. Despite this, many Australian homeowners are struggling financially as a result of inflation’s impact on the cost of living, geopolitical influences on fuel costs, and the Reserve Bank’s interest rate increases.

  • Why I Don’t Believe in Borrowing to the Max? (and Why Paying Off Your Home Still Matters) 

    Debt

    Recently I got a perfectly understandable question on social media. Actually, it was in two parts:

    Why wouldn’t you borrow as much as the bank will let you?

    Why would you even bother paying off your own home?

    I get why someone would ask this. Around 80% of the marketing you see on social media in the finance space is from businesses promoting the purchase of investment properties. And surprise, surprise the people saying this are usually in the business of selling property. That’s a built-in conflict of interest.

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