I envy people who had the foresight to lock in their rates as I had a colleague who fixed in a 1.7% fix rate for 10 years on his home. He did have to hunt around and pay a decent amount for it.
I too bought my place during COVID and am one of those thousands of people who have come off a fixed rate to a variable rate, so the pain is definitely felt here too.
I believe fixed is slightly different from collared as the fixed rate doesn't change for the duration of it. But collared seems to be a fixed range that the rate can move in. So in Taraz's case, his rate could go below the 1.65% he has been paying......that's mind boggling when I think of my variable rate.....which is 5%+
I am doing what you are doing, all expenses on the credit card (sans the stupid places that charge you 2% to use a credit card) all savings in the offset accounts (yes, you can have multiple offset accounts set up) then pay my credit card bills a few days before they are due. A bit of work for sure, but the perception of beating the bank is worth it!
About 60% of my mortgage is offset (and I've had 6 years to chip away at it)
I got a really modest place, well below my means, but its cosy, warm, and now has solar! :D
I could go back to fixed, or split the loan to get that perception of "beating the bank" even more, but the administrative effort involved in this case doesn't feel worth while.
I think my variable rate is about 5.4% at the moment.
You have already offset 60% of your mortgage! That's amazing. I still need to work really hard on mine:(
I think this is the reason why so many Aussies are struggling right now. You need to get a place that is below your means, and not max out your lending capacity. Neighbour envy is so strong here and people get sucked into it and now that there isn't anymore cheap interest rates......
I've got the best neighbours. One is an old bloke in his 70s who has a dark sense of humour, loves pizza and science fiction, the other is a lady in her 90s who will give you a hug and biscuits for helping her unjam her gate when it gets stuck.
I'll be sad when they move on. Very sad. (Here's hoping I outlive them both)
Good neighbours are the the one of the most important things, along with a safe neighbourhood when looking for a place to lay down roots. Apartment living (aka me) is tricky in that aspect. I know who the people on my floor are, but the rest of the building, it's more like hi/bye passerbys. Or maybe I am just the unfriendly type....
You're the wolf among the sheep, aren't you? :P
I feel as though, among strangers, it takes an ordeal to bring them together. Otherwise, they'll just be strangers.
For the most part, people are ok; but I feel as though I should cherish and nurture the relationships I already have, as opposed to going up to random people in the [insert place name] and trying to make new friends.
As long as you pay it all off each month, it can be great. they don't do it here as far as I know.