It’s a common misconception that mortgage offset accounts are loan products when in fact they are savings accounts sitting within a mortgage structure. If you’re not sure how mortgage offset accounts might benefit you – read on!
You’re moving into your new home; corks are popping and there are smiles all around – classic advertising that for many seems unattainable.
Although many Australians may want to bash the banks over tighter home lending criteria, it’s the bank regulator, the Australian Prudential Regulatory Authority (APRA) that has set these requirements to address the risks in the mortgage market. Low deposits were increasing the risks carried by lenders.
It goes without saying that homebuyers love low interest rates. The lower the interest rate the less the mortgage repayments on a particular house, right?
Well, maybe.
Lower interest rates also mean borrowers can service a bigger loan. In a competitive housing market that can push up prices, as we have witnessed this past decade.
So what’s really going on? Have low interest rates been good or bad for homebuyers?
Access our Infographic that explains how falling interest rates may affect housing prices