Summary
Social media platforms are flooded with mortgage tips, but many of these suggestions can lead to costly mistakes. Financial journalist Frances Cook and mortgage advisor Aaron Cattell, known as the Mortgage Man, emphasize the importance of discerning credible advice from myths circulating online. They highlight that while some tips may sound appealing, they often lack the nuance necessary for individual financial situations. For instance, the idea that one can avoid paying interest on a mortgage by making small payments daily is dismissed as unrealistic.
The conversation also delves into the ongoing debate of renting versus buying a home. Cattell argues that while owning a home may not always be the best financial decision, it can provide long-term benefits, especially as rental prices tend to increase over time. He advises potential homeowners to focus on properties where they can add value, rather than relying solely on market trends for appreciation.
Cattell further discusses the importance of understanding mortgage structures and the common pitfalls that borrowers face, such as not maximizing extra payments during fixed terms. He encourages individuals to educate themselves about their financial options and to maintain an emergency fund to avoid falling into debt traps. Ultimately, both Cook and Cattell advocate for informed decision-making in the complex landscape of home financing, urging listeners to seek personalized advice tailored to their unique circumstances.
Show Notes
Time to fact-check the mortgage advice taking over social media, and see what actually holds up. Mortgage adviser Aaron Cattell (aka The Mortgage Man) is ready to go myth-by-myth through the mortgage advice doing the rounds online, and find out what actually survives contact with someone who does this for a living. We cover: The "pay a dollar a day" trick, the viral claim that resets your mortgage interest. Weekly vs fortnightly vs monthly repayments; does paying more often actually shave years off your mortgage in New Zealand, or is that a US myth that doesn't translate? The "buy two houses, one each" couple strategy Credit scores, and how much they really matter for a NZ mortgage application Rent vs buy, and how to figure out the numbers for the NZ context
This episode of Making Cents is proudly supported by Odoo. Go to http://odoo.com/r/hpl now and try it for free, for 15 days.
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Production and video editing by Lana Byrne Audio engineering by Tash Chittock Filmed by Fanaticals
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