Have we been duped?

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By Dwain Duxson.

Have we been duped? - See snippets from an article I read recently at the bottom of the page. Also included is a graph that is related to household mortgages, but according to David Haydon from Agri Finance, Agriculture, lending follows a similar trend. 

So my question here is, have we been duped or hoodwinked by the Banks into the pitfalls of variable loans? Are variable rates better business for Banks? How much better off are UK or US Farmers or mortgage holders who used fixed rates as their primary source of lending? Have our Banks here been negligent in not giving us decent fixed-rate alternatives? So many questions.

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I would love someone who is good at this to do a historical example of what the difference would be in, say, a 20 or 30-year House loan or a Farm overdraft or term loan.

I wonder how many of you fixed your loans when rates were low and are getting the benefit of that now. As David says below, seasons are variable enough, so combining that with a floating interest rate means there is more than enough risk in what we do. Are you variable or fixed? And do you wish you had fixed your rate when interest rates were low, or is it not as simple as that? Reply to dwaind@farmtender.com.au

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