Rate rises and your mortgage

[ThePedigree]

Interested to see how everyone is going after all these rates rises from the RBA?

We recently purchased a new house. By the time we got approval, made an offer, moved in, there’s been a massive jump in extra monthly repayments.

Changed jobs about 2 years ago and went into the finance industry. Reading lots of conflicting info. Wondering what is fact / fiction from what I hear in the finance industry vs news articles and what is actually happening on the ground.

Discuss.

 

[The DoggFather]

I'd love to discuss but I'd have ASIO knocking my front door down lol

 

[The DoggFather]

But all jokes aside, I feel for the people coming out of their fixed term period...

 

[Natboy]

Find a broker you trust & see what they can do with other lenders. Get them to ring your current lender and then call yourself and threaten to walk. Don’t pay a loyalty tax because they ain’t loyal

 

[ThePedigree]

Find a broker you trust & see what they can do with other lenders. Get them to ring your current lender and then call yourself and threaten to walk. Don’t pay a loyalty tax because they ain’t loyal

I am a broker. [emoji23]

All my clients are getting rate discount for sure

My question was more are you feeling the pinch like the tabloids are claiming?

The stats don’t paint the same picture, but still want to know what real people are feeling.

 

[Aristidiz]

I am a broker. [emoji23]

All my clients are getting rate discount for sure

My question was more are you feeling the pinch like the tabloids are claiming?

The stats don’t paint the same picture, but still want to know what real people are feeling.

Its inevitable people have started feeling it, another 4 rates rises to come between now and September.

Personally I have a relative small loan and intend on buying another property in the next 3-6 months. Knowing your borrowing limits and expecting these inevitable rate rises is key.

 

[BELMORE]

People are feeling it Ofcourse but it’s not a massive amount of people yet. More and more peoples fixed terms finish as this year goes on, but lots of people also are ahead, and have gotten pay rises in the last 24 months too.

 

[Caveman]

It's not just rate rises, it's everything, groceries, fuel, electricity...

Unfortunately everything became stagnate for to long before covid leaving the average compoinded cpi growth way behind where it should have been - government was so vocally worried about us not spending that we in the end didn't spend and as a result didn't not have healthy inflation year in year out since before the gfc.

 

[The DoggFather]

I am a broker. [emoji23]

All my clients are getting rate discount for sure

My question was more are you feeling the pinch like the tabloids are claiming?

The stats don’t paint the same picture, but still want to know what real people are feeling.

Any dealings with ME Bank my bro? What's your professional view on them?

 

[The DoggFather]

It's not just rate rises, it's everything, groceries, fuel, electricity...

Unfortunately everything became stagnate for to long before covid leaving the average compoinded cpi growth way behind where it should have been - government was so vocally worried about us not spending that we in the end didn't spend and as a result didn't not have healthy inflation year in year out since before the gfc.

And when they can't blame covid for the bullshit rises, they will blame climate change.

 

[Natboy]

I am a broker. [emoji23]

All my clients are getting rate discount for sure

My question was more are you feeling the pinch like the tabloids are claiming?

The stats don’t paint the same picture, but still want to know what real people are feeling.

Find yourself haha.
I’m not feeling a pinch and most is locked at a low rate for a few more months anyway but plenty of people I know are finding it hard.

We knew rates would go up but the timing of a new government known for high cost of living and poor economic management isn’t ideal either.

It pisses me off so much that when inflation rises it’s the home owners that are punished with interest rate rises but people on the dole etc get more money. Makes no sense. They should temporarily increase and decrease GST so it’s fair for everyone

 

[Nexus]

My fixed rate is just about to expire. Have locked in another rate but my repayments have gone up by $1000 a month.

Thankfully we earn enough to be ok, still sucks though.

 

[UmoGus]

Our repayments have gone up about $900 so far. Still easily manageable for me and the Mrs but wouldn't be able to survive alone. Gotta feel for the people doing it by themselves.

 

[BELMORE]

It's not just rate rises, it's everything, groceries, fuel, electricity...

Unfortunately everything became stagnate for to long before covid leaving the average compoinded cpi growth way behind where it should have been - government was so vocally worried about us not spending that we in the end didn't spend and as a result didn't not have healthy inflation year in year out since before the gfc.

It only dropped at the start of 2020 because no one knew wtf was going on. Then scomo started pumping cash into our veins

 

[Raysie]

Living in Auckland. We bought our first house here late 2021 when the market was hot and interest rates were at 2.5%

Our broker advised we keep split the mortgage on two and keep the terms short. Well that worked out fucking great!

We had 1 year at 2.5% and 2 years at 2.95%. The one year term is at 5.9% now adding another $900 of payments per month. I'm absolutely frightened of the additional costs when the second half comes up for refixing.

Meanwhile the value of the house has gone down and we're expecting our first kid in May going down to 1 income.

Meanwhile my grandad worked in a glass factory back in the 60s, couldnt read or write, bought a house in Arncliffe and had it paid off in 2 years. What a time to be alive folks.

 

[maroondog72]

nope I own my house.

 

[BELMORE]

Living in Auckland. We bought our first house here late 2021 when the market was hot and interest rates were at 2.5%

Our broker advised we keep split the mortgage on two and keep the terms short. Well that worked out fucking great!

We had 1 year at 2.5% and 2 years at 2.95%. The one year term is at 5.9% now adding another $900 of payments per month. I'm absolutely frightened of the additional costs when the second half comes up for refixing.

Meanwhile the value of the house has gone down and we're expecting our first kid in May going down to 1 income.

Meanwhile my grandad worked in a glass factory back in the 60s, couldnt read or write, bought a house in Arncliffe and had it paid off in 2 years. What a time to be alive folks.

You got to change your perspective my bro. you’ve got a roof over your head, you’ve got a kid on the way. You’ve got options if your payments strain the budget too much. You’re all good. Bank won’t let you foreclose anyway.

 

[Raysie]

You got to change your perspective my bro. you’ve got a roof over your head, you’ve got a kid on the way. You’ve got options if your payments strain the budget too much. You’re all good. Bank won’t let you foreclose anyway.

Thanks bro - I know. Life is good honestly, just sucks when you work your **** off doing 2 jobs and still seem to be hanging by a thread financially.

 

[SPEARTAKVIDREFS]

We doing ok. My repayments are low because I didnt buy outside my means.We bought about 7-8 years ago.
We borrowed less than half of what the bank said we qualified for because I didnt want to struggle if me or the wife got sick and one of us lost a job long term.
So glad we bought a shitter to do up.
As Caveman said, everything has gone up and will continue to do so moving forward. Could never have predicted Covid and the impact thats had.
I feel very fortunate to be paying off a home even though its not as flash as some.
We have a buffer and can handle rate rises into the future.

 

[N4TE]

People are feeling it Ofcourse but it’s not a massive amount of people yet. More and more peoples fixed terms finish as this year goes on, but lots of people also are ahead, and have gotten pay rises in the last 24 months too.

Fucking pay rises? I work for myself and that is not happening. But yeah stupid Sydney