‘Such a scam’: 26-year-old mortified over how little she’s paid off her home loan

A letter from the bank has made one young woman conclude that owning your own home is a “scam” that she’s fallen for.

A letter from the bank has made one young woman conclude that owning your own home is a “scam” that she’s fallen for.

Evy Kassiotes, 26, took to social media to claim home ownership hasn’t quite lived up to her financial expectations.

“Owning a home is actually such a scam,” she said.

“I got a letter in the mail to tell us about the progression of our loan and how much we’ve paid off.”

Ms Kassiotes then expressed her shock at learning how little of a dent she had made in her mortgage in almost two years.

“What do you mean we’ve only paid off $3000 since October 2023? It is now May 2025,” she said.

“Like are you joking? Is this a joke? Am I getting pranked?”

Evy Kassiotes branded owning a home ‘such a scam’. Picture: TikTok/evy.kassiotes

Ms Kassiotes expressed her shock at learning how little of a dent she’s made in her mortgage. Picture: TikTok/evy.kassiotes

Home loans accrue interest just like any other debt.

The amount of interest someone pays on their loan depends on interest rates, the loan amount, and the bank they’re with, but, on average, Aussies are paying around 6.27 per cent interest on their home loans per annum.

Some homeowners choose just to pay back the interest on the loan, which means the loan doesn’t shrink, but sometimes, this can be offset by the increase in the property’s market value.

The fact the 26-year-old hasn’t made much of a dent in her mortgage isn’t unusual, but it didn’t sit right with her.

Ms Kassiotes stressed that she knows she’s privileged to own a home, but the letter just made her think, “What the f**k?”

She wasn’t happy to discover how little she’d paid off after almost two years. Picture: TikTok/evy.kassiotes

Ms Kassiotes stressed that she knows she’s privileged to own a home. Picture: TikTok/evy.kassiotes

The 26-year-old’s horror resonated with Aussies who chimed in to share their own mortgage issues.

“This is what people don’t understand. And now that there may be a 5 per cent deposit option people will be drowning in debt,” one said.

“Mortgage interest is a scam. Owning a home is all right; at least it’s not dead money like rent,” one argued.

“People laugh at me as I plan to sell both my houses and move overseas to pay 0 per cent interest/income/capital gains tax,” one person said.

“I hate those letters,” another commiserated.

Online Aussies shared their own home loan hot takes. Picture: iStock

Others were more concerned that Ms Kassiotes was blindsided by how little she’d paid off, reminding her to do her research.

“Isn’t this something you should have researched prior to taking out said mortgage? How is it not common knowledge that you basically pay hardly anything off the principal of your mortgage for the first half of your loan?” one person said.

“The amount of people who take out home loans but don’t really understand how a home loan actually works. You gave up 30 years of financial freedom but didn’t bother to understand what you signed up for?” another questioned.

“You have to put extra repayments. Even if it’s $50 a week it will make a difference. Change all of your bank accounts to offset. This will also make a huge difference. Never just pay the minimum,” someone advised.

People were concerned that Ms Kassiotes was blindsided by how little she’d paid off. Picture: iStock

The fact some Aussies are only paying off the interest on their home loans makes sense when you consider how rough it is for mortgage holders in 2025.

According to financial comparison website Finder, in 95 per cent of suburbs in Australia, it is cheaper to rent than to own a home

Mortgage stress has also skyrocketed in the past five years.

Finder’s Consumer Sentiment Tracker that revealed 37 per cent of mortgage holders struggled to pay their home loans in May.

More than 1 in 10 homeowners say they have missed a mortgage repayment in the past six months, including 5 per cent who missed just one repayment and 7 per cent who have missed more than one.

Of those who missed one or more mortgage payments in the past six months, 1 in 3 said high interest rates meant they could no longer afford to cover their home loan.

Leading finance expert Julian Finch says it has been a tough time for mortgage holders. Picture: Supplied

Financial expert Julian Finch said that he had noticed a grim trend of people struggling to pay their mortgages.

“We’ve had a relief with rates easing a touch. Certainly it was peak pain around Christmas time last year, I had someone, ring me and say, ‘I’ve got to choose between my mortgage and feeding my family’,” he said.

Mr Finch said that, before you start paying down your mortgage, you need to ensure you’re not just paying off the interest.

The financial expert also warned that, even when rates come down, not all banks automatically adjust repayments.

“If you can maintain your repayment it helps you get ahead, but if people need a pressure release, it can be worth a phone call,” Mr Finch said.

“If your payment hasn’t moved down, you can call your bank and ask them to recalculate it.”

Originally published as ‘Such a scam’: 26-year-old mortified over how little she’s paid off her home loan