Oz mortgage rate above 9%
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I want to check with Oz lover how the higher mortgage interest
rate of 9.5% in Oz can off set the benefits by migrating there?
I hope Mods will not any thread so lightly.
I think my topics and contents are not offensive but
u hardly come by.Thats why u suffer from culture shocks.
http://www.myrate.com.au/smart_borrowers
www.hdb.gov.sg rate is just 2.6%,one of the lowest in the world!!
I agree u will get better welfares ,bigger house and car more common
and different life styles there.
But the 6% mortgage interest rate defference is not small.
If u have to bear a loan of A$200,000,u have to bear
6% more in interest than u are in SG,translates to A$12,000 a year
or A$1,000 a month.
The gross interest u have to bear,without paying
the principal,is A$1,583 a month or S$2058 per month!!
The subsequent years drop a little bit.
But like SG,mortgage rate can go down and uppppppp!!
i list old info for your reference.
http://www.abs.gov.au/AUSSTATS/[email protected]/Latestproducts/835719233482EF4ACA25732C00208159?opendocument
Of course,if u are cash rich and earn fat interest from
deposits.U will like high deposit interest rate,which is
a twin brother of high mortgage rates!
BTW,why Aussie dollar has to pay so high deposit rate
to attact people to put in Aussie dollars?
Why some currency pays u near zero interest?
No free and good lunch in the world.
Think and then we talk.
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I believe some forummers here will argue that if they put money in the bank they will enjoy higher interest rate as well. However in a society like in Australia and USA where saving rates are at all time low and while gearing at all time high, most citizens will suffer as the result of higher interest rate.
Debt-to-income
Saving ratio
Household gearing (ratio of debt-to-assets) by income