Keith Gumbinger Product Quotations

Welcome to the cold reality. A lot of people selected short-term interest rate product and are now beginning to see how these things benefit the lender.

These loans can be of value for people who want to save or invest the money they would have paid in principal, ... Unfortunately, the way the product has been pitched, borrowers have been encouraged to stretch their budget to buy more house.

The question you need to ask yourself is, why would a bank be pitching you this product at this time? The obvious answer is that bankers believe rates will rise in the future. Getting you out of a fixed loan and into a variable one helps ensure profitability on your account.

If you're the gambling sort, you could get into an interest-only product and bet that the market will build equity for you.