Your New Years Resolution for 2025 – A Financial Detox
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For many Australians, the possibility of entering the property ladder has been a nothing more than a pipe dream. High interest rates, increasing property prices and the strain of a cost-of-living crisis has led to a perfect storm of conditions that has meant the door to homeownership has been perpetually closed for some. But there may be a solution.
There is a school of thought that suggests introducing 40-year loan terms as a strategy to combat affordability issues, given that spreading the amount payable over 40 years instead of 30 will decrease the repayment amount.
Although a legitimate option for some, it is not necessarily ideal for all mortgage customers. Given that 40 years is a long time, the target demographic would be young people with stable job.
There are some lenders in Australia that have 40-year mortgage products however they are either niche lenders or products that come with a less than competitive rate. None of the major banks now operate in this space though that may change with considerable interest in solving the housing affordability issue many currently are facing.
For more information on this or if you have any other home loan related contact the Blackburne Mortgage Broking team.
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