Khmerhamster wrote:Barang_doa_slae wrote:LaudJohn wrote:
Even banks charge about 1.5% per month for mortgages secured by hard title with a 40% deposit. Relatively low risk (provided the valuations are not corrupt) for a decent return, which is almost 80% per annum on a compound basis).
That sounds like a lot.
I borrowed to a local bank at 9% per annum which seems already very expensive considering that housing mortgage can be found as low as 1% in the west but is in line with the deposit earnings.
Also advertised fixed interest rates really aren't, since the banks put a provision that they can hike the rate at their discretion even if I have yet to meet someone to whom they did.
Can you get 1% mortgage deals now in the west (I'm talking about UK-maybe other countries are different?)
I wouldn't have thought so. Maybe 8-10 years ago but surely not now.
If they are available I imagine they are only available for an introductory period for 1-2 years after which it'll revert to 4-6% unless you want to remortgage with another company (and then get charged redemption fees and set-up fees). I imagine these attractive rates are also only available for low LTV borrowing.
I would think that in Europe at least, typical mortgage rates were higher 10 years ago than they are now, probably in the 3 to 4% bracket at the time.
This year for the very first time, Germany is being paid when issuing obligations and France, despite running a huge budget deficit can also borrow at less than 1%.
From what I hear, good credit rating home buyers with at least 30% equity can borrow for about 1.3% insurance included on 15 years terms.