Tracey Chandler - Buyers Agent

Your Exclusive Buyers Agent -

Specialising in Sydney's Eastern Suburbs 

and Lower North Shore

0416 100 839

tracey@tcba.com.au

  • Home
  • Why use Tracey?
  • Buyers
    • Buying a home
    • Buying an Investment Property
    • Overseas Buyers
  • Services
    • Full Property Search
    • Evaluate and Negotiate only
    • Auction Bidder
    • FEES
  • Testimonials
    • Video – Past Clients
    • Video – Real Estate Agents
    • Written Testimonials
  • News
  • About
    • About Tracey Chandler
    • How It Works
    • The Process
    • FAQ
  • Contact
  •   0416 100 839

May 19, 2015

Glaring Mortgage Statistic Revealed

May 19, 2015
share
share
tweet

mortgage costsMichael Yardney writes a scathing piece on the present mortgage situation in Australia for his website Property Update. He begins with the powerful statement, ”buying a home worth $611,000 will set you back by $1 million over the life of your mortgage”.   This, put in another way, means that homes today come with at least a million-dollar price tag.

A glaring mortgage statistic

Research is quite unequivocal on the subject. If you employ a loan with a 5.5% variable interest rate, a property bought for $611,625 with an upfront fee of 20% will set you back by a million dollars by the time the 30-year tenure is completed.

If the present offers a good deal, who cares for the future?

It is human nature not to look too far into the future if things look good for the present and immediate future,  which is probably the biggest reason credit cards became such an integral part of our existence. When people borrow, they think about the existing interest rates and hardly focus on what they may end up spending over the entire tenure of the loan.

If your upfront cost is meager, asserts Yardney, and you do not shop well for your deal, the capital growth of your home over the course of 30 years will be near nullified by the cost you have to pay for it over the same duration.

Stats for Sydney even more bizarre

For Sydney, the projected median house prices are such that come the 11th year, borrowers will hit the $1 million mark that we discussed earlier. Now, another thing of note is the variable interest rate you are being offered by the lender. The research talks about a 5.5% interest rate wherein what the lender offers might turn out to be far higher, if you are not circumspect while selecting.

Michael could not have been clearer in sounding the warning bells. In this pursuit, one of our recently published articles about various home loans that you can benefit from might help you.  All said, in my opinion, it is all the more important to get a good price on your home, since the savings are actually compounded.

Related posts:

  1. 3 Ways in Which Mortgage Debt Can Be Paid Quicker
  2. Issues a Mortgage Broker Can Assess
  3. Have Mortgage Commitments? Beware Of Possible Interest Rate Hike
  4. How To Get The Best Mortgage Deal

Get Your Dream Property Sooner

This field is for validation purposes and should be left unchanged.

Most Popular Articles

  • auction tips Pre-Auction Tips: 9 Things To Do BEFORE Auction Day under Features
  • 5 Key People To Ask for Real Estate Investment Advice under News
  • hiring a buyers agent 10 Important Questions to Ask a Buyers Agent Before You Hire Them under Features
  • property auction 7 Dos and Don’ts Everyone Should Know About Property Auctions under Features
  • how to prepare for a property auction How To Prepare For A Property Auction 101 under News
  • two bedroom apartment in Sydney Here’s Why it’s Better to Buy a Two-Bedroom Apartment in Sydney under News

Recent Articles

  • 7 Tips for Buying a Home in Sydney’s Eastern Suburbs

    7 Tips for Buying a Home in Sydney’s Eastern Suburbs

  • How To Avoid Emotional Attachment To Property

    How To Avoid Emotional Attachment To Property

  • Why Are So Many Sydney Homes Sold Off-Market?

    Why Are So Many Sydney Homes Sold Off-Market?

  • Should you engage a buyer’s agent for an auction?

    Should you engage a buyer’s agent for an auction?

Topics

buying property during COVID-19 financial freedom first home buyers forecasts home inspection home owners home prices home renovation home valuation how to buy a home interest rates lifestyle mortgages overseas investors property auctions property investing property investment property negotiation property valuation real estate real estate agents real estate industry sydney eastern suburbs sydney property market taxation

Feedback from Clients

Areas Served: Eastern Suburbs | Lower North Shore | Inner West

Copyright © 2025 by Tracey Chandler - Buyer's Agent in Sydney. All Rights Reserved.

339 Oxford Street, Paddington NSW 2021, Ph: 0416 100 839

recommended buyers agent award

WINNER

"NSW Highly Recommended Buyers Agent Award"

sydney real estate logos

Privacy Policy | Terms & Conditions | Disclaimer

Connect with us on:

google reviews
4.9 ★★★★★
Based on 61 reviews
google reviews
4.9 ★★★★★
Based on 61 reviews