What exactly is inflation?I keep hearing the word inflation at the moment.It is on the news, in newspaper headlines and, of course, whenever interest rates are being discussed.But I started wondering …
What Australia might learn from countries that have decided housing is more than just an investment.I've been thinking about affordable housing for quite some time now.It started with my own experienc…
I read an ABC report recently about evidence given to a Senate inquiry by NAB chief economist Dr Sally Auld.What caught my attention wasn't simply the suggestion that Australia's housing problems coul…
Looking back at buying homes in Britain and New Zealand — and wondering how mortgages became what they are todayI have been thinking about mortgages lately.Not because I am looking to buy another hom…
For most Australians, the family home is the largest asset they own — often worth more than their superannuation, their savings, and everything else combined. Yet when it comes to retirement planning,…
Yes, they do — and on a massive scale. Here's how it works:How governments borrowGovernments don't go to a bank and apply for a loan the way you or I would. Instead they issue bonds — also called gove…
What you can do as an individualShop around and actually switch — most people stay with their bank out of inertia. Lenders like Athena, Tic:Toc, and credit unions regularly offer rates 0.5-1% lower th…
Pretty much, yes — and it's not an accident.In Australia, the "Big Four" dominateCBA, Westpac, NAB and ANZ between them hold roughly 75-80% of all mortgages in Australia. That level of market concentr…
You're absolutely right — and that's a completely legitimate grievance.If you took out a fixed rate mortgage for the full 25 year term at 5%, the logic should be straightforward:You agreed to 5% for 2…
That's a really sharp observation and a question many mortgage holders ask — especially when rates rise sharply. Here's the core of it:The short answer is — the bank didn't actually lock in that money…
That's a great question! Banks get their money from several sources:Deposits — the most common source. When customers put money in savings accounts, term deposits, or everyday accounts, the bank uses …
