How do interest-only loans work?

Interest-only loans are pretty much what they sound like: you borrow money and your regular repayments only cover the interest costs. The outstanding loan amount remains constant, though it must eventually be repaid in full. This is in contrast to principal and interest (P&I) loans, where part of each payment comprises interest with the remainder[…]

The relationship between interest rates and housing affordability

A fall in interest rates is usually greeted with delight by homebuyers. The lower the interest rate the less the mortgage repayments on a particular house, right? Well, maybe. However, lower interest rates also mean borrowers can service a bigger loan. In a competitive housing market that can push up prices. So what’s really going[…]

Buying your kids a home – good idea or bad?

Owning your home has long been considered the Australian dream, but the changing property market is helping to ensure that it remains just that for many young people. Even with initiatives such as First Home Owner Grant schemes, housing ownership remains unaffordable to many. Figures from the Australian Bureau of Statistics show that Australia’s property[…]