Mike's Minute: We buy houses on emotion, not logic

Best of Business · Apr 28, 2022 · 2m

The most common home loan these days is one that lasts for 30 years.

Think about it, chances are it's longer than you have been alive, given many of them go to first home buyers. If you're later in life, it could be longer than you have left on Earth.

That’s a lot of time owing a lot of money.

57 percent of mortgages this year so far are for 30 years. 66 percent of them in are Auckland, which shoots up to 83 percent if you're a first home buyer.

The trouble with 30-year loans is that you pay a fortune for them. The greatest gift a bank could give you is to print a spreadsheet of all your…