1% cut - does it change anything for you?

[Psyber]

DA - a "monster" mortgage is all relative though. A $200k house for a minimum wage family brings a mortgage that is stretching in the same way as a bigger mortgage for those with more income.

If only the Govt set up it's own bank again and offered loans at a standard margin against the official rate, we would all be laughing. Taxpayers borrow from the taxpayer then and the money earned goes back to the taxpayer!

Don't they already do that with Homestart?

I know what you mean though mate. I guess my frustration is more at the unscrupulous brokers who meet with homebuyers (especially younger generation) and procedd to offer them an $800k homeloan. My wife and I went to the bank a couple of years back knowing exactly what we wanted (a modest amount) having done our sums and with a big deposit. The numbnuts then tried to convince us to take out an $800k loan. Why on God's earth would we want to do that? It's a worry that some people do it. We would have been working till we were 80 paying 35% of gross income. No room for kids, holidays, anything. Just dumb, dumb, dumb of the bank.

The power and threat of compound interest should be drummed into EVERYONE at every year level of school

Yes, as I mentioned elsewhere there have been several examples come to light in Sydney suburbs where developers overpriced house and land packages, and local mortgage brokers and valuers told the punters [and the banks] they were valued correctly, and then wrote loans the punters couldn't afford for houses that never were actually worth the debt, let alone the price paid...

[Squawk]

Let me tell you Psyber, if the Treasury beaureaucrats were given jobs in banks, profits would slump because they are so tight and risk adverse. In banks, the whole objective is two-fold; cross sell and up sell.

[Psyber]

Let me tell you Psyber, if the Treasury beaureaucrats were given jobs in banks, profits would slump because they are so tight and risk adverse. In banks, the whole objective is two-fold; cross sell and up sell.

Yes, you are right about the Treasury types - they would stifle everything.
On the other hand I've had dealings with CommSec and they promoted some of the most hare-brained schemes I have ever seen as "good secure investment potential".
Presumably anything CBA financed they pushed at the punters to try to spread the risk. I never took their "advice", but they gave me a few laughs!

[MagicKiwi]

HomeStart is a statutory authority whose inception was as a result of the astronomical interest rates of the late 80s. The home loan model is aimed towards lower income households, although a HomeStart loan is available to everyone. You can find that if you earn too much, the loan will not work appropriately for you.

[TroyGFC]

Hopefully goes down a further few more %. I am almost (next week) out of my 5 yr fixed rate 5.8% and not looking forward to extra amount I am going to have to pay. Its time for another war / bombing.

[devilsadvocate]

Hopefully goes down a further few more %. I am almost (next week) out of my 5 yr fixed rate 5.8% and not looking forward to extra amount I am going to have to pay. Its time for another war / bombing.

(Bad) Jokes hopefully!
There is a bombing almost daily when you combine Iraq, Israel, Palestine, Thailand, India, Pakistan, Somalia, etc, etc. The people in those places I'm sure would prefer you to have to pay an extra 1% and not have to put up with the shit they're experiencing.

[Snaggletooth Tiger]

Hopefully goes down a further few more %. I am almost (next week) out of my 5 yr fixed rate 5.8% and not looking forward to extra amount I am going to have to pay. Its time for another war / bombing.

Starting with your house ya peanut!