Are 50-Year Mortgages Really That New?
- Nichole Ehrbar
- 2 days ago
- 3 min read
A Look at What Other Countries Are Doing
By Nichole Ehrbar, Your Big Island Agent
The idea of a 50-year mortgage has sparked a major debate in the United States. Some believe it could help make homeownership more attainable, while others warn that slow equity growth and higher lifetime interest make it risky. But here’s what many people don’t realize:
The U.S. is not the first country to explore mortgage terms beyond 30 years.
Several nations have tested or used long-term products in response to affordability challenges, rising prices, and economic shifts. Understanding what other countries have done helps us see what may be ahead for buyers here in Hawai‘i and across the country.
Spain: 40–50 Year Mortgages During the Housing Boom
Spain is one of the clearest examples of ultra-long mortgage terms in practice.
During the early 2000s housing boom, banks began offering 40-year mortgages.
In some cases, terms extended up to 50 years.
These products were created to help buyers afford rapidly rising home prices.
After the 2008 crash, many long-term borrowers were left with negative equity, especially in markets where values fell sharply. Today, most Spanish mortgages cap out at 30–40 years, and many lenders enforce age limits that prevent borrowers from carrying loans past approximately age 75.
Takeaway: Extended terms can help affordability but increase long-term risk when markets shift.
United Kingdom: Active Discussion of 40–50 Year Mortgage Terms
In the United Kingdom, policymakers and lenders have openly discussed whether ultra-long mortgage terms could help younger buyers enter high-cost markets.
Several lenders already offer 40-year mortgage products.
50-year terms have been proposed, especially in response to affordability concerns in cities like London.
Unlike the U.S., many UK mortgages have short fixed-rate periods, often just two to five years, which creates additional interest-rate risk even with a long amortization.
Takeaway: Longer terms may reduce payments but do not eliminate rate volatility.
Why This Matters for Buyers in the U.S. and Hawai‘i
Looking at other countries makes one thing clear:
Longer mortgage terms are typically introduced when home prices rise faster than wages, or when buyers struggle to qualify under traditional terms.
That is exactly the situation the U.S. faces today.
If the U.S. were to adopt a 50-year mortgage, buyers would likely see lower monthly payments. This could be helpful in high-cost markets like the Big Island. However, the trade-off would be slower equity growth and higher total interest over the life of the loan.
What It Could Mean for Hawai‘i Buyers
A 50-year mortgage, if it becomes widely available, may help:
First-time buyers who need more flexible monthly payments
Local families who are priced out of many neighborhoods
Long-term residents planning to stay in their homes for decades
Buyers who expect to refinance when interest rates eventually fall
However, it may not be the best choice for:
Buyers who plan to sell within 5–10 years
Investors focused on strong equity positions
Borrowers who qualify for shorter terms at better rates
Anyone uncomfortable with paying significantly more interest overall
Like everything in real estate, determining whether a long-term mortgage makes sense depends on your goals, timeframe, and financial strategy.
Final Thoughts
As mortgage discussions continue to evolve, understanding how other countries have handled long-term products helps clarify the risks and opportunities. While a 50-year mortgage is not yet available in the U.S., the global examples show both the potential benefits and the challenges.
Whether you are moving to Hawai‘i, purchasing a second home, or preparing for long-term investment, staying informed ensures you make the best decisions for your future. If you’d like updates on mortgage policy changes and how they may impact Hawai‘i’s market, I’m always here to help.
Nichole Ehrbar, REALTOR® (RS-84140)
ABR® | RSPS | GREEN | C2EX | Luxury Specialist
International Diamond Society Accolade
ZT Hawaii LLC
808-238-8336
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