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‘We never would have bought’: Australian mortgage holders feel the pain as interest rates rise again (www.theguardian.com)

submitted 6 months ago by hanrahan@slrpnk.net to c/ausfinance@aussie.zone

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They have decided to sell their newly finished home and pivot to the tiny house movement due to “cost of living and lack of freedom”.

“Humans are not meant to live this way,” she says. “It’s causing a cascade of issues, health issues, a mental health crisis and the fact that so many people aren’t having kids because they simply can’t afford it.”

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[–] CarbonatedPastaSauce@lemmy.world 0 points 6 months ago (3 children)

Does Australia not have fixed rate mortgages?

[–] Eyekaytee@aussie.zone 0 points 6 months ago (1 children)

We do

https://www.queenslandcountry.bank/Banking/home-loans/

tbh this is not actually a real problem country wide, interest rates are at their average and you will always find people who got in over their head, this is just a sob story

[–] brisk@aussie.zone 0 points 6 months ago

the Ultimate Home Loan Package (Fixed) locks in an interest rate for up to three years

Australian "fixed rate" is just variable rate with a locked in period. The USA has fixed rate for the term of the loan as standard

[–] zero_gravitas@aussie.zone 0 points 6 months ago

Basically no. The vast majority are fixed rate for only the first 1 to 5 years.

More info here: https://lendingloop.com.au/what-is-the-longest-fixed-rate-mortgage-in-australia-and-how-can-it-benefit-you

[–] ObscureOtter@piefed.ca 0 points 6 months ago

Most countries don't have long term fixed rate mortgages! They were first established in America by FDR in 1934 as part of the New Deal!