50-year mortgages are a bad idea, how to check for ETF overlap & why the Big Banks are struggling

12 snips

Nov 12, 2025

The discussion kicks off with the controversial proposal of 50-year mortgages and their potential risks for affordability and financial stability. ETF overlap is examined, highlighting its impact on portfolio diversification. Insights from Tim Carleton reveal that Australia's big banks are losing their competitive edge, while Macquarie is shaking up the market. The benefits and dangers of long-term mortgages, alongside the hidden challenges of private markets, round out the conversation.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Long Loans Hide Massive Interest Costs

A 50-year mortgage only reduces monthly payments modestly but massively increases lifetime interest costs.
It slows equity build-up so you may pay triple the principal over the loan life.

INSIGHT

Longer Terms Fuel Housing Price Inflation

Longer mortgages increase buying power and risk inflating house prices across the market.
That demand-side effect can undo affordability gains and mostly helps existing homeowners.

INSIGHT

Macquarie's Structural Cost Advantage

Macquarie is rapidly taking market share by offering better deposit rates and low-cost, digital banking.
Its tech-first, branchless model gives a structural cost advantage over legacy big four banks.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

Fifty-year mortgages are being pushed by President Trump in the US. Could this be the fix for housing affordability, or a ticking time bomb for long-term financial stability?

We also tackle a community question about the hidden dangers of ETF overlap and what it really means for your portfolio’s diversification. To go even deeper, check out our Get Started Investing episode on the topic here 🔗

Plus, we feature clips from our interview with Tim Carleton, Chief Investment Officer at Auscap Asset Management, who argues three out of the four Big Banks in Australia have lost their competitive advantage. You can catch the full conversation with Tim in our Basis Points episode, available now.

Timestamps

1.23 News and Markets

12.16 Community Question on ETF Overlap

19.40 Tim Carleton Insights

20.20 On the Big Banks

26.41 Why Tim thinks Private Markets are an Illusion

———

Want to get involved in the podcast? Record a voice note or send us a message

And come and join the conversation in the Equity Mates Facebook Discussion Group.

———

Want more Equity Mates? Across books, podcasts, video and email, however you want to learn about investing – we’ve got you covered.

Keep up with the news moving markets with our daily newsletter and podcast (Apple | Spotify)

We’re particularly excited to share our latest show: Basis Points

· Listen to the podcast (Apple | Spotify)

· Watch on YouTube

· Read the monthly email

———

In the spirit of reconciliation, Equity Mates Media and the hosts of Equity Mates Investing acknowledge the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander people today.

———

Equity Mates Investing is a product of Equity Mates Media.

This podcast is intended for education and entertainment purposes. Any advice is general advice only, and has not taken into account your personal financial circumstances, needs or objectives. Before acting on general advice, you should consider if it is relevant to your needs and read the relevant Product Disclosure Statement. And if you are unsure, please speak to a financial professional.

Equity Mates Media operates under Australian Financial Services Licence 540697.

Hosted on Acast. See acast.com/privacy for more information.