One In Eight Mortgage Borrowers “Extend And Pretend”!
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- Опубліковано 11 лип 2024
- Struggling homeowners are increasingly hitting the pricey reset button on their loans in the hope of dragging down their monthly repayments.
It’s adding years to the length of their loans and potentially hundreds of thousands of dollars in interest costs.
A recent Finder.com.au survey revealed one in eight mortgage holders polled revealed they had extended their home loan to lower their repayments over the last year.
In a trend described as “borrowers stuck in mortgage quicksand”, about half of those who had extended their loans had added more than five years to the life of the debt.
This would result in much higher interest costs over the lifetime of the loan, despite cheaper monthly repayment bills in the short-term, Finder revealed.
“Even a small increase in the length of a loan term can add up to big differences in interest over the life of a home loan.”
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Well, whatever is happening, everyone is getting rich off property.
So far, mortgage arrears are so low.
The banks risk management in Australia seems to be second to none.
I would have thought the whole thing should have collapsed years ago. But no, it just keeps charging.
Only when it keeps going up the math falls apart if it drops 15 % , it would be blood in the streets
15% can afford a house now. In another 2 years that will be 10. House prices will be so high, rents so high to cover repayments, millions will be homeless
Unsustainable things can keep going for longer than you think, William. Pretty sure the Yanks shared the same viewpoints as yours leading to the sub-prime debt collapse - when it happens, it happens, you won't see it coming.
Would love an episode sometime on how the UK housing market works. Only just recently noticed that Landlords don't own their property, they are leaseholders to some big Lords in London. It's all very Canberra where land is leased, but in UK land and house is leased. I can't quite get my head around they get a UK mortgage on a property that's a 99 year lease and paying those huge prices and maintenances costs. If Landlords as well they then don't get enough rent to cover all costs. Love watching Escape to the Country and Location, Location but it all feels false somehow if they are buying a lease with a mortgage!
Sounds like a show I should make!
@@WalkTheWorldDFA well trying to be bossy, but it was fascinating running the numbers looking around the lovely Portsmouth and realising wait, they are rented of renters? 😯
Sounds like Singapore too, 99 yr lease, so no one's a homeowner.
@@dianay6691 Isn't 99 year lease as well in china?
Does allowing mortgage holders to extend, hide , what is in essence sub prime lending?
Martin what happened to the morgage cliff. NO MORE MENTION OF THIS IN THE MEDIA.
Banks paid to stop spreading the truth
who already knew this?
Property Price Protectionism.
Thank you for updating the truthful information on time, Martin! ❤
Always!
Late last year, USA and Australia according to media to get 3-4 rate drops by end of 2024, 6 months in now only looking a 1, but the year is not over? The coin we don't want to flip heads it rates goes up with hyperinflation, tales crap hit the fan and we get 3 before Christmas. It is a lose lose from here for all.
Still having problems with fixing the email notification feature of your DFA blog ?
Princple place of residence should be low rates….let the market dictate the rate on “investment” and commercial…..
Define 'low rate', and why shouldn't people pay market interest rate on primary residence? You borrow the same currency regardless the property you purchase, don't you?
Anyone who isn't rich should not be buying a home these days. Doing so will only make you a mortgage slave. If you're young enough and have parents, move in with them instead.
who the hell could afford a million dollar mortgage…ffs
Too be fair 1 $ million aint what it use to be 🤣.
@@Eric-kn4yn exactly…….yet wages havent kept up…
Commentary by people with $300k household incomes is abhorrent……
families on $100k are just above broke…..
Thank you Martin, great insight. What are your thoughts on China's 50 year loan, do you think it would be something Australia's should adopt?
The hell, 50 years to life time interest payment only is only in Australia or USA. In China on average they dont buy houses in huge mortgage and 87% of their citizens own their houses without mortgage. Shanghai is only 6200 Km2 with population of about 24 to 26 million without any homelessness while entire Aus or just 1 city like Sydney have more homelessness then probably entire China cities combined.
@@user-ie9zz9bi2u homeless or just extreme squalor? Plenty of videos on UA-cam showing how bad it is at the bottom in china
I will refinance and extend next year and all that extra equity I have will be free to invest.. I know I am in a minority though, the majority would just spend any extra money they have instead of investing.
I don't think people are refinancing because they aren't aware it's going to cost them more in interest. I think they're refinancing so they don't lose their houses.
700k interest on a 600k loan?! So 1.3m over 30yrs?! Did you miss speak?
I don't think so.
You typically pay double a loan amount over a 25 year loan
Correct, more on interest than capital! Over the loans life...
Isn't that usury?
All talk no clue
1st
Congratulations and jubilations🎉
Putting a Muslim with her handout in the thumbnail...is...rather appropriate.
Martin is a very decent man he would have never tried to cause offence
@@sco7397 Thanks to our great Goverment.
Australia’s housing market, Low to middle-class working people now compete with not just China’ rich but the world’s rich due to migration , WHY ? A.L.P All Australians believe in freedom of discrimination , ALP believes in name calling to get their support
All Australians believe in freedom of discrimination , They do not believe in name-calling To gain support like labour ,
Negative propaganda can inspire atrocities by demonizing certain groups of people. We've seen plenthy of this, one of the more recent examples, Putin calling Ukrainians Nazis, thereby convincing some Russian soldiers to create atrocities against the Ukrainian population .
Yes but we have millions and millions of 👽🦧🧕👳♂️ migrating here and this horror show utube doesnt stop them please explain.
You have to pay for it have alook at how much it cost now.
What we have to ask is how do they get to rent a house without a rent or job history, or obtain a place to rent in front of those who are in tents?
@@jondoe5536🎯 .👍