Social Trends – Page 11 – Digital Finance Analytics (DFA) Blog

One In Eight Mortgage Borrowers “Extend And Pretend”!

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.”

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/

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Hello, I’m From The Government, And I’m Here To Help You! (Honest!!?)

It’s raining “announcables” at the moment, with interesting developments this past week on the housing and finance front as city, state and federal Governments continue to poke at the broken system. Schemes include, government buying off the plan to give construction firms a leg up, cheap housing for essential workers, changes to lending rules, higher council rates for investors, and further crackdowns on airB&B.

While these may sound attractive from a media positioning perspective, they will hardly move the dial on the broken housing system in Australia. It’s a case of fiddling while Rome burns.

In fact, for more on the broken system, join me on my live show next Tuesday evening at 8pm Sydney, when I will be joined by Leith Van Onselen, Chief Economist at Nucleus Wealth as we discuss “The Great Housing Poker Game”.