Will interest rates rise due to price inflation of basic necessities?
This would normally be a clear indicator of interest rate hikes to come in double-quick time but the first sentence of this article doesn’t make sense to me. Fuel, food and power are basic necessities. We’re not even in control of these price rises, so what would be the point of raising interest rates? It’s not like people are rushing out to buy tomatoes at $12/kg because they are rising in price! I’m not extending my mortgage to invest in bananas for my retirement!
Borrow from one bank or multiple banks?
If you’ve never had any problems with banks or believe that if you always pay your mortgages, you will be ok, don’t be so sure. I know many investors whose relationships with their lenders suddenly turned sour even though they had strong cashflow and had not missed any mortgage payments. Some were shocked to learn that their mortgages could be called in at any time even though they had long term fixed rate agreements!
