Inflation vs. Mortgage

Discussion in 'Investment Strategy' started by Arecaceae, 10th Oct, 2021.

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  1. Arecaceae

    Arecaceae Well-Known Member

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    9th Oct, 2021
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    Australia
    I believe it’s a good idea to borrow the maximum amount as long as we can comfortably repay even after interest rates rise in the future. Inflation allows us to pay lenders back with money worth less than when it was originally borrowed, which acts as a hedge against inflation, especially when inflation is rising right now and interest rates are low.

    I’d like to hear what you have to say about this.
     
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
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    03 9877 3000
    Inflation is definitely the friend of the borrower. With inflation rates and income fluctuate, making the loan more affordable relative to everything else.
     
    craigc, Beano and Arecaceae like this.

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