Australian experts warn Trump’s 50-year mortgage is a ‘recipe for disaster’

Donald Trump’s latest big idea for housing affordability – a whopping 50-year mortgage – might sound like a lifeline, but Australian financial experts are warning it’s less a solution and more a recipe for disaster.

As Aussies grapple with a cost-of-living crunch and an RBA poised to hold rates, the consensus is clear: this American import won’t fix our property woes, it’ll just make them worse.

With tomorrow’s cash rate call looming, and all 35 experts in Finder’s RBA Cash Rate Survey predicting a hold at 3.60 per cent, Australian households are desperately seeking financial relief.

A staggering 43 per cent of Aussies have less than $1000 in savings, according to Finder’s Consumer Sentiment Tracker, highlighting the immense pressure on family budgets.

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Graham Cooke, head of consumer research at Finder

Graham Cooke, head of consumer research at Finder, said now is the perfect time to hit refresh on your finances.

“Take a hard look at where you’ve been spending your money. Stop paying for things you don’t need or aren’t using – think unused memberships and subscriptions – and don’t pay too much for what you do need – your mortgage, energy provider,” he said.

“Then think about ways to bring in extra cash, whether through investing, a savings account with a better interest rate, or starting a side hustle.”

Trump’s 50-year mortgage madness: Why Aussie experts say ‘no thanks’

Across the Pacific, the Trump administration recently floated the concept of a 50-year mortgage repayment plan, ostensibly to make housing more accessible.

However, when Australian experts were asked to weigh in, the response was overwhelmingly negative.

A significant 79 per cent (22 out of 28 panellists) believe these ultra-long mortgages are not a good tool for improving housing market accessibility here.

Stella Huangfu from the University of Sydney said while 50-year mortgages lower monthly repayments, they won’t make housing cheaper.

“In most cases it actually allows people to borrow more, which pushes prices even higher. Buyers end up paying far more interest over their lifetime, carrying debt for decades longer, and building equity much more slowly,” Huangfu said.

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President Donald Trump may have been dancing to the final performance of the Village People during the FIFA World Cup 2026 Official Draw on December 5 but his 50 year mortgage proposal is no joy to celebrate, according to Aussie finance experts.

Dale Gillham from Wealth Within said increasing the mortgage length benefits the lenders far more than it benefits consumers.

“Australia has this unique love affair with property, and we need to look deeper into why this is,” he said.

“Further, we need to look at what is driving prices to unrealistic levels. In the last 40 or so years, housing affordability has gone from around 4 times the average wage to over 8 times. “As it stands, due to government compliance, taxes and fees, building new homes is far from affordable, and in many cases is not viable for investors.

“We need to fix the systemic issues first before we make loans more accessible, as this will only pour more fuel on the fire, with the financial institutions the big winners.”

Shane Oliver from AMP noted, “They will just mean people will end up paying even more in interest payments without doing anything to improve affordability.”

Despite the strong opposition, a few experts saw potential.

Nicholas Gruen from Lateral Economics said 50-year mortgages could be a good tool.

“Debt needs to be serviced, not paid off. For so long as we treat housing as an asset market, that’s how we should see it,” he said.

Leanne Pilkington from Laing+Simmons agreed.

“Affordability is a major issue and it makes sense to explore every potential solution available,” Pilkington said.

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