Home life, Toxic Custard newsletter

Home loan: some progress at last

Here's a graph of my home loan, which I got just over nine years ago. The loan was approved in August 2005, but only took effect in October that year (the huge leap on the left). In the first year or so I was able to pay it down a bit. It only took me about 8 months to get the balance down to 95% of the initial loan. With interest burning up most of the payments, it took another 5 years

Home life

The gamble of fixed interest rates

In October 2007 I switched to a fixed interest rate of 7.85% for five years. It turned out to be a terrible punt. The Global Financial Crisis hit the following year, with interest rates dipping to record lows. I shudder to think how much money I might have saved if at that point I'd locked in a low fixed rate. Maybe there's an alternative universe version of me who held off in 2007, and took ad