Yes, they used to be interest only here before, the 1% (or 2% for the first part) was added in response to risks. So basically the 1% is just that, retirement s

Yes, they used to be interest only here before, the 1% (or 2% for the first part) was added in response to risks. So basically the 1% is just that, retirement savings. Because at the end of the day it doesn't really matter whether it's 1/30 of a 30yr mortgage or 1/100 of a 100yr mortgage, that amount will be exactly what the buyer can afford. So after 30 years I'll have a home with around 1/2 a mortgage remaining. And saving a massive slump in prices, that will be a big part of my retirement savings. Having a completely paid off 30yr mortgage would be even better of course, but not hugely so. The amount left as "savings" is still the same. The longer mortgage just holds a larger risk/reward of passive income vs loss.