Mortgage Affordability
Affordability Myth #6: “A mortgage is a mortgage – they’re all the same, right?”
2 minute read
Rana Miah | June 18, 2025 Share
When you’re starting out, it might seem like all mortgages do the same thing: you borrow money, buy a home, and pay it back with interest. Simple enough.
But once you start digging in, you’ll quickly realise that not all mortgages are created equal.
The reality
There are loads of different types of mortgages, and each one works a little differently.
From fixed-rate deals that keep your payments steady, to tracker or variable-rate mortgages that move up or down with interest rates. And then there’s repayment vs. interest-only, not to mention features like overpayments, fees, and early repayment charges.
What’s right for someone else might not be right for you – even if you’re buying a similar property.
What to think about instead
Don’t just grab the first mortgage deal you come across, or assume what worked for a friend will work for you. Instead, ask yourself:
- Do I want the security of fixed payments?
- Am I OK with some risk if it means starting with a lower rate?
- Do I plan to stay in this home long-term, or might I move in a few years?
- Can I make overpayments if I want to pay it off faster?
These questions help you choose a mortgage that fits your situation – not just the cheapest or most popular one.
Sarah was buying her first home and really wanted peace of mind, so she chose a 5-year fixed-rate mortgage. She knew exactly what she’d be paying each month, and that helped her plan ahead.
Her friend David, on the other hand, was likely to move again within a couple of years. He was happy to take on some risk and went for a tracker mortgage that started at a lower rate – perfect for the short term.
Bottom line?
Mortgages aren’t one size fits all. Take the time to understand your options – and if it all starts to feel overwhelming, a mortgage advisor can help break it down and guide you towards the best fit for your goals.
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