30 fixed mortgages would be more expensive.Banks can't borrow at...

  1. 23,275 Posts.
    lightbulb Created with Sketch. 1262
    30 fixed mortgages would be more expensive.
    Banks can't borrow at fixed rates for 30 years & as such would have to take out massive interest rate hedges.
    Hedges cost money that would be passed onto borrowers.
    It would also significantly increase risk, more capital would need to raised & held. Again this costs money that would be past onto borrowers.

    Housing in Australia would be even more unaffordable.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.