The Real Reason You Can't Lock In Your Mortgage Rate For Decades

In late 2024, 97% of all new home loan funding in Australia was variable rate, just 3% was fixed. In this episode, Michael breaks down why Australians can't get a 30 year fixed mortgage like Americans can, and whether that should change.🔔 Subscribe and leave a comment with your questions, we build episodes around what YOU want to know.General advice only and not personal advice. CRN 485467---------------------------------In this episode:Why Australian banks can't offer 30 year fixed home loansHow banks actually fund the mortgage they lend youThe borrow short, lend long problem explained simplyWhy 97% of new Australian loans are variable rateHow America uses Fannie Mae and Freddie Mac to offer 30 year fixed loansA new report calling out how much risk Australian borrowers carryFour proposed reforms including tracker mortgages and LMI changesThe hidden catch with long term fixed ratesWhy choice, not just fixing for longer, is what actually matters---------------------------------Subscribe:⁠https://www.youtube.com/@ThatBackyardPropertyPodcast⁠Instagram: ⁠https://www.instagram.com/backyardpropertypod?igsh=MWhkOWx5YzJxdDc3ag==⁠Website: ⁠https://tuskfinance.com.au⁠Connect with Michael:Facebook: ⁠https://www.facebook.com/tuskfinancemk⁠Instagram: ⁠https://www.instagram.com/mortgageswmichael⁠LinkedIn: ⁠https://www.linkedin.com/in/michaelkilliner⁠TikTok: ⁠https://www.tiktok.com/@backyardpropertypodcast⁠Tusk Finance: [email protected]:(00:00) Why can't Australians lock in a 30 year mortgage(00:34) America locks rates for 30 years, Australia caps at 5(01:20) 97% of new Australian loans are variable(02:52) Where banks actually get the money they lend you(04:47) Why borrowing short and lending long changes everything(05:56) How Fannie Mae and Freddie Mac make US fixed rates possible(07:55) The report saying Australian borrowers carry too much risk(09:03) Reform 1, building a long term fixed rate market(09:19) Reform 2, tracker mortgages that follow the cash rate(10:18) Reform 3, reforming lenders mortgage insurance(11:12) Reform 4, standardizing hardship support(11:27) The catch with long term fixed rates(13:46) Four key takeaways recapProduced by Podwave Studios: https://www.podwavestudios.au#AustralianProperty #MortgageBroker #FixedRateMortgage #VariableRate #RBACashRate #HomeLoans #PropertyInvesting #TuskFinance #ThatBackyardPropertyPod #MortgageStress #InterestRates #FinanceTips #PropertyMarket #LendersMortgageInsurance #TrackerMortgage #BorrowingPower #AustralianFinance #HomeLoanTips #RealEstateAustralia #MortgageRates