I was very discouraged to hear RBA Governor come out and say interest rates will be maintained low for next 3-4 years.
Sends , in my mind, a wrong message . Encourages people to borrow thinking they can afford it easily .
Property loans are often 25 years plus and like in many marriages the "honeymoon " period (low rates) blinds you to reality . As time goes on rates will increase and the honeymoon will crash down.
It would be nice to see lenders in very clear language advise borrowers what to expect over the life of a 25 year loan.
In the past when I wished to borrow I always used about 7-8% a a guide to my affordability over the life of a loan .
Always kept mi shirt on
