...Mortgage advisors it is important to understand  they are often financially incentivised to  

push you towards certain mortgages and often  they are the mortgages that are worse for you...

all right so um the most important thing almost  always on your mortgage is the interest rate  

almost always. like a small difference because the amounts the size of mortgages are normally so large 

like 0.1% or 0.5% make a massive difference on your payments right  

um sometimes what mortgage advisors it is important to understand

they are often financially incentivized  to push you towards certain mortgages  

and often they're the mortgages that are worse  for you it makes sense in a way right because  

the banks want you to take a mortgage that is bad for you, because that's good for them

so the banks incentivise your mortgage advisors to push you towards mortgages that are bad for you

so what sometimes happens is for example  they'll say here's one mortgage which is a

15 year mortgage and has a high interest rate 3% and then the total amount of interest  

you pay is this amount (small) and here's another  mortgage which is a 35 year mortgage but the  

rate is 2% and you pay way more because  it's a much longer term mortgage okay 

people think oh well i'll take the short term  mortgage on the higher interest rate because  

i'll pay less interest. that is exactly completely  the wrong thing to do but it looks good because  

they'll show you a form and it'll say well this  is the amount of interest you found this mortgage  

and that's the interest you'll pay on that mortgage  but the reason you're paying more interest on a  

longer term mortgage because you're borrowing  money for a much much longer period of time  

and that gives you money for a long period of time  and then you can do what you want with that money  

you can invest the money or you could you could  buy more property basically it's valuable to have  

that money the most important thing is to get the  lowest interest rate because then that means that  

your monthly interest payment will be lower  um that's the number one most important thing  

and also if we talk about financial advice for  ordinary people the very first thing you should  

do if at all possible is go check your mortgage  because sometimes people take two year fixed rates  

the rate run out, the rate runs out and it goes to  a much higher rate and it'll be super expensive

refinance get the lowest rate you can , the most important thing is pick the lowest interest rate

it's not complicated okay so then we talk about how long should the mortgage term be? 

There's 2 types of term - there's the term of the fixed rate - if you take a 2 or 5 year fixed rate

and then there's the term of the overall mortgage which is 25, 35 years or whatever  

um in terms of the rates um it's generally best to pick whatever is the lowest rate

If a 5 year fix is only slightly higher than a  2 year fix it might be worth it just to lock  

in security for longer period of time um really  depends on what's happening at the time but  

don't pay too much to have a longer fix but in  terms of the overall term of the mortgage  

it's actually better to have a longer  term of mortgage and some people don't  

understand this intuitively because they see well i'll pay more interest if i borrow the  

money for longer period of time but if you take a 35 year mortgage all that means is

you'll have a lower monthly repayment but remember you always have the option  

of paying more every year if you want to and if you are able to save more money

that's a very sensible thing to do is to pay your mortgage down

um but if you take a 25-year mortgage with higher  monthly payments you can't make those payments  

lower if you want whereas if you have a 35-year  mortgage with low payments you can make those  

payments higher if you want. So effectively you're  just choosing the maximum term that you're allowed  

so if you take a 35 year mortgage nobody's  stopping you from paying off in 15 years but if  

you take a 15 year mortgage you try and pay off in 35 years you're going to be in trouble basically  

so you should always take the longest possible  term and you should basically consider yourself  

as an individual and as a family - do we want to  pay that mortgage off early? if you have the money  

or do you want to invest in other investment you  know you might want to buy a house for your kids  

you might want to buy build up  a stock and share portfolio so  

if you borrow the money for longer then you can  still pay it off more quickly if you want but you  

also have that money for a long period of time you can use it to create passive investments

you can buy more property for your kids you can buy stocks & stocks

so always take the longer mortgage

and then you have the choice of  paying off whenever you want within that time  

don't take a shorter mortgage because if you need  more time it'll become more difficult to get it

housing could be so much more affordable wages  could be so much higher and we could have so  

many more options in how we live our lives some  of them put a lot of money into paying economists  

and think tanks to tell you that inequality is is important for the economy that is not true