this post was submitted on 28 May 2026
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[–] Tau@aussie.zone 8 points 4 days ago (2 children)

As someone who finally managed to buy an apartment a few months back I'd prefer to not get screwed over both ways by a price crash, but I'd be ok with prices flatlining for the foreseeable future so some sanity eventually returns to the housing market.

[–] Taleya@aussie.zone 20 points 4 days ago (1 children)

that's the neat part. People living in their houses ain't gonna get screwed. People trading them like pokemon cards are.

[–] Lemming421@lemmy.world -1 points 4 days ago (2 children)

Depends how Aussie mortgages work - if they’re lifetime, like America, sure, you’re fine.

If you’re supposed to remortgage after 2 or 5 years like most British ones, a crash can leave you unable to do that as the property is worth less than the mortgage amount, so you end up stuck on the default rate which is usually terrible.

[–] Longmactoppedup@aussie.zone 3 points 2 days ago

I have no idea why you have been down voted.

Our mortgages do work in a manner more similar to British ones than American.

I.e. you sign up for either fully variable interest rates, or you can lock rates in for relatively (say 3ish years) short time periods.

Typically lenders provide their best rates when borrowers negotiate well before signing up. Then they hit people with the "laziness tax". I.e. they raise their rates fees etc higher and higher on the assumption that the borrower will simply bend over and take it or be too lazy to re finance. Many do. But plenty shop around and transfer to another lender to take advantage of better rates.

If your property goes down in value, to the point your loan to value ratio goes below the threshold deemed too risky, then your ability to shop around gets diminished. Perhaps it dips in to the ratio which invokes lenders mortgage insurance, or even makes you so underwater you can't change lenders at all.

If this happens then the borrower can find them selves stuck paying a lot more in interest.

[–] lime_red@lemmy.world 5 points 4 days ago

Yeah nah, the Aussie ones don't work like either of those.

[–] kurikai@lemmy.world 5 points 4 days ago (1 children)

if it crashes you should atill be ok. as long as you dont sell

[–] Salvo@aussie.zone 2 points 3 days ago

Real estate agents won’t be alright, but they are all scum sucking dirtbags so IGAF.

all (apologies to the one or two real estate agents who aren’t scum sucking dirtbags)