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Why should they decrease it just because the rate is up?
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So borrowings are limited to repayable levels as interest rates rise.Why should they decrease it just because the rate is up?
That is more why it is there? I’m saying why lower the buffer just reduces the contingency if rates go up again and people have borrowed more.So borrowings are limited to repayable levels as interest rates rise.
The buffer was raised to 3% during the pandemic when the cash rate was next to nothing, before that the rate was 2-2.5%. Given the cash rate has started to normalise it makes sense to reduce the buffer back to what it was also.That is more why it is there? I’m saying why lower the buffer just reduces the contingency if rates go up again and people have borrowed more.
Fair enough, to me it should be left alone (in the first place) it is basically manipulation the cash rate as you are lifting or reducing borrowing capacity. Which is what the RBA do when they set the cash rate. I am probably in the minority with this opinion.The buffer was raised to 3% during the pandemic when the cash rate was next to nothing, before that the rate was 2-2.5%. Given the cash rate has started to normalise it makes sense to reduce the buffer back to what it was also.
Fair enough, to me it should be left alone (in the first place) it is basically manipulation the cash rate as you are lifting or reducing borrowing capacity. Which is what the RBA do when they set the cash rate. I am probably in the minority with this opinion.
That’s too tight imo. I’m surprised you got a loan with that.I've got 24 hours before my cooling off period ends my rate will be 5.9% over 2 years my average left over per week will be around $$530-560
i work full time
I'm just unsure if $560 is doable. I obviously need money for food and other expenses like petrol and beer (lol) but i also need to save money if something goes wrong with the house or my car
Really battling with this decision. I like the idea of renting a room out but i thing its fair enough to be picky on who. i don't want any random
Thoughts everyone?
Any assets you can sell ? Second job, nights/weekends.I've got 24 hours before my cooling off period ends my rate will be 5.9% over 2 years my average left over per week will be around $$530-560
i work full time
I'm just unsure if $560 is doable. I obviously need money for food and other expenses like petrol and beer (lol) but i also need to save money if something goes wrong with the house or my car
Really battling with this decision. I like the idea of renting a room out but i thing its fair enough to be picky on who. i don't want any random
Thoughts everyone?
I'd personally have to sell other assets down the bottom of the list.Any assets you can sell ? Second job, nights/weekends.
Cheaper ale?
Never shared accomodation? Its a compromise. Like a fridge at work when the a-hole or two/three.
Just grind mate.I've got 24 hours before my cooling off period ends my rate will be 5.9% over 2 years my average left over per week will be around $$530-560
i work full time
I'm just unsure if $560 is doable. I obviously need money for food and other expenses like petrol and beer (lol) but i also need to save money if something goes wrong with the house or my car
Really battling with this decision. I like the idea of renting a room out but i thing its fair enough to be picky on who. i don't want any random
Thoughts everyone?
I've got 24 hours before my cooling off period ends my rate will be 5.9% over 2 years my average left over per week will be around $$530-560
i work full time
I'm just unsure if $560 is doable. I obviously need money for food and other expenses like petrol and beer (lol) but i also need to save money if something goes wrong with the house or my car
Really battling with this decision. I like the idea of renting a room out but i thing its fair enough to be picky on who. i don't want any random
Thoughts everyone?
Secondly, people borrowed far more than they could afford. My wife and I borrowed 350k. Our borrowing power was 700k. It's a basic home but it's a first home.
Some of the borrowing is on the banks who encouraged larger loans, but very few people were smart about their borrowing
Congrats mate, have got settlement for my place coming up June 26th so I completely understand the feeling.Settled![]()
Congrats mate, have got settlement for my place coming up June 26th so I completely understand the feeling.
Smart choice incase rates keep increasing.Same here - we got pre-approved for $700k but ended up buying for $530k. There's a lot of piece of mind knowing that we won't be locked into mortgage hell.
If**Smart choice incase rates keep increasing.
Got mine cheap 3 years ago. I decided to go a bit higher I’d be under water right now!!
Same here - we got pre-approved for $700k but ended up buying for $530k. There's a lot of piece of mind knowing that we won't be locked into mortgage hell.
Dude, I'm exactly in the same position.I've got 24 hours before my cooling off period ends my rate will be 5.9% over 2 years my average left over per week will be around $$530-560
i work full time
I'm just unsure if $560 is doable. I obviously need money for food and other expenses like petrol and beer (lol) but i also need to save money if something goes wrong with the house or my car
Really battling with this decision. I like the idea of renting a room out but i thing its fair enough to be picky on who. i don't want any random
Thoughts everyone?
The problem is even with a modest mortgage the high interest rates are a real ****ing drain.Same here - we got pre-approved for $700k but ended up buying for $530k. There's a lot of piece of mind knowing that we won't be locked into mortgage hell.
Dude, I'm exactly in the same position.
Just sold my house and bought another one at the lower to mid end of the market. The houses in the low end were in problem suburbs.
I'm faced with a difficult situation.
Put down 20% deposit and avoid the 12 K LMI and have limited funds left over that I need
put down a 12% deposit and pay the LMI but have more flexibility with future expenses.
Either way I need to make sure my expenses are sustainable. (I can't be losing money)
What pisses me off with the RBA is they're going to ******* send the country into a recession which is what they did last time, and then drastically lowered rates. Why the hell are they being so aggressive.
To put into perspective when my finance settles I'll hopefully get a 3 year fixed rate at 5.7ish%. Even with a modest mortgage I'll potentially be up for as much as $500/wk in repayments. Even with very tight spending I'll have * all money for anything at all. I'll be restricting energy use, eating budget meals, never going out, never spending money because I just won't have any left over. The only money left over will be for my footy membership. I'll have to cancel my gym membership.
I'll have to consider a boarder but that's potentially going to bring about new problems for my situation.
My question is how the * are people able to spend money? Are they going further into debt with credit cards and personal loans because I cannot work out how people can be paying $700 a week on a mortgage for a $500k loan
The RBA is being absolutely reckless.
The RBA is applying a broad measure to curb inflation and it's hurting the most vulnerable. Problem is a lot of boomers are cashed up. Rents are going to keep going up, more and more people are going to be living on the streets, starving and going without essentials. Reason being is there is a massive shortage of houses and the poorest will be pushed out by people able to pay more.My mortgage has gone up from $5.5k pm to $9k pm! Rates are doing what they’re meant to thought, we’ve cut back our spending
Problem is, only 30% of Australia has a mortgage and only half of those have one with an LVR above 60%. Increasing rates isn’t impacting enough people. I’d increase compulsory super payments. Cuts everyone’s disposable income without lining the banks pockets