Dr Sam Wylie

But the lowest ones are around 2%.

I can see an interest rate that's 2.05%.

Let's talk about that when you go to speak to your mortgage broker.

So look, inflation is not all bad because when you buy the apartment, inflation will push the price of the apartment up.

And it'll push your salary up as well.

So yes, the problem with interest rates is the bad comes immediately.

So the RBA puts your interest rate up.

It puts the interest rates up by 1%.

And it's a $500,000 mortgage.

So you go from paying $12,000 per year to $17,000 per year.

the extra 5,000, the 1% of the RBA trying to control inflation.

And so the problem for you, increased interest payments, comes all in one go.

Bang, you go from paying 12,000 to paying 17,000 in one go.

$7,500 from our example before in one go.

But then the benefits come slowly.

And in the end, the benefits equal the problem or might even exceed it.

And the benefits are that your salary will go up with inflation.

You'll have some kind of wage negotiation.

There'll be tension for your employer to pay you more.

Otherwise, you'll go to a better job.