Eli5: Is inflation good for your mortgage?

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If you are paying a fixed rate on a mortgage, is inflation then a good thing?

In: Economics

34 Answers

Anonymous 0 Comments

Kinda

It’s more accurate to say that pay rises are good for your mortgage, and pay rises tend to be at least somewhat linked to inflation

The amount of money you owe decreases, while the price of everything else (and especially the amount you owe) increases – meaning you owe less and less relative to your income

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