In this episode of The Property Trio, Mike, Cate and Dave break down some of the biggest and most expensive mortgage myths circulating in the property world. These myths catch out first-timers and seasoned borrowers alike. Today, the Trio unpack why smart mortgage strategy always goes far beyond chasing a low rate.

Mike kicks things off with the most common assumption of all: that the lowest interest rate must always be the best loan. Dave explains why this thinking is flawed, sharing how structure, flexibility and long-term plans often save borrowers far more than shaving a fraction off the rate. Cate offers real-world examples of investors who make some of these mistakes.

From there, the Trio explore the myth of “pay off your mortgage as fast as possible”. It sounds wise, but Dave and Cate reveal how aggressive repayments can backfire if the property later becomes an investment. This is especially problematic when borrowers mix up offset and redraw, potentially losing future tax deductions under the ATO’s purpose test.

Next, they tackle the belief that borrowing capacity is the same across all lenders. Dave highlights how assessment models vary dramatically, often resulting in differences of hundreds of thousands of dollars for identical borrowers. Cate emphasises why a strategic mortgage broker is invaluable; not just for policy expertise, but for navigating lenders, avoiding errors and comparing options impartially.

The Trio also address two family-focused myths: that you cannot borrow while on maternity leave, and that loyalty to your bank ensures the best deal. Dave dispels both, explaining how documentation, return-to-work clarity and regular rate reviews are far more important than sticking with one lender.

Finally, Mike wraps up the episode by reminding listeners that informed decisions, (not assumptions) are the key to better borrowing outcomes.

And our gold nuggets!…..

Dave Johnston’s gold nugget: “There is a lot of misinformation out there when it comes to mortgages and strategy. Working with a good strategic broker matters.”

Cate Bakos’s gold nugget:”If you’re thinking about ditching your offset account, do not do so without talking to a professional!”

Related episodes:

Ep. 9             Why your mortgage strategy is more important than your interest rate?

Ep. 24           How mortgage strategy shapes your ability to hold property and how it can pay off for decades to come

Ep. 30           Money Management – 7 steps to success

Ep. 48           Offset accounts – God’s gift to Mortgage Strategy!

Ep. 184        Interest only vs Principal & Interest – Why working through the different considerations could add millions to your nest egg at retirement

Ep. 191        Risk management and the things that can go wrong when mortgage strategy is ineffective

Ep. 250        Investment Borrowing Masterclass – Maximise Tax Deductions and Advanced Mortgage Strategies for Long-Term Wealth Creation

Ep. 304        How to Increase Borrowing Capacity— Strategies to Maximise Your Property Budget, Refinance, Access Equity & Grow Wealth with Smart Spending

Ep. 306        How to Increase Borrowing Power – How Kids, Rate Cuts and Variable Income Impact Property Buying Potential, Equity Access & Refinance

Ep. 309        How to Boost Borrowing Power – Debt Management Strategy for Smart Property Decisions & Unlock Investment, Home & Refinance Opportunities

Upcoming ep – #340: Market Update November

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