AusFinance

1298 readers

28 users here now

founded 2 years ago

MODERATORS

‘We never would have bought’: Australian mortgage holders feel the pain as interest rates rise again (www.theguardian.com)

submitted 23 hours ago by hanrahan@slrpnk.net to c/ausfinance@aussie.zone

12 comments fedilink hide all child comments

They have decided to sell their newly finished home and pivot to the tiny house movement due to “cost of living and lack of freedom”.

“Humans are not meant to live this way,” she says. “It’s causing a cascade of issues, health issues, a mental health crisis and the fact that so many people aren’t having kids because they simply can’t afford it.”

you are viewing a single comment's thread
view the rest of the comments

[–] CameronDev@programming.dev 3 points 11 hours ago* (last edited 8 hours ago)

No, but by the nature of offsetting your loans interest, it works out about the same. Every dollar in your offset is saving you from paying 5% on a dollar you owe on the loan.

To use silly numbers, if you have a loan at 5% for $100, and a savings account at 2%, at the end of a year, your down $5 on the loan, and up $2 on the savings. If instead you have $100 in your offset, your down $0 on the loan, so your offset has functionally earnt at 5%.