The 30 year loan is not a "rich get richer" scheme. The 30 year loan is a tool to allow people with limited earning potential access to the property market, and

The 30 year loan is not a "rich get richer" scheme. The 30 year loan is a tool to allow people with limited earning potential access to the property market, and this can open the door to passive income and generational wealth. A 30 year loan paid off over a 30 year period is a waste of the product - one is not supposed to set it and forget it, doing that optimises the lender's profit much like paying off a credit card at the minimum rate or never checking if one's internet/phone/utility plans have become more competitive (check those annually.) Here are typical ways that a 30 year loan is used to enhance a person's financial position: 1. If the property value has increased, the loan can be refinanced to extract this equity as cash for investments that outpace the mortgage rate. Thus a person is immediately earning passive income which can be used to reduce their mortgage or other regular expenses. 2. Competition between lenders produces competitive rates. One can take advantage of lower rates in order to either reduce their out-goings or pay off their loan sooner (thus reducing their interest.) 3. A person can take advantage of the rental market. For example a couple may rent a smaller property after their children leave the nest, while renting out their family home. The function here is that they can remortgage their property over another 30 year duration, thus they begin to earn income from the property rather than having the property cost them money. (The loan duration is less important when the property is earning you money.) A common mindset of people is that they don't want a mortgage hanging over their head they want to "own" the property and have no "debt" - but financially savvy people will utilise their properties for wealth generation by having "debt". This means if their property is paid off, they would still mortgage it to the bank in order to obtain funds which are used in higher-interest investments, producing a passive income. Note if you are in good standing, you can walk into a bank and take out a personal loan - then use that loan to procure an investment portfolio which earns more than the repayments. Yes you own the risk, but it's a method to obtain instant passive income, and it's not difficult to invest in solid earners (some banks will even have this as a product, although it tends to be less competitive.)