TikTok and Instagram reels are fun, fast and free – but it’s important to be picky about whose content you’re viewing, especially if you’re in the market for a home loan.
Chances are, if you’re reading this blog via a social media site, then you’ve also watched a TikTok or Instagram video before, too.
In fact, more than 8.5 million Australians are active on TikTok and almost 14 million on Instagram – making both platforms key players in Australia’s social media landscape.
Social media platforms certainly helped us while away the hours during COVID lockdowns, and they’re still keeping us entertained as we check out what Korean office workers eat for lunch, short clips of our favourite comedians, or discover what a family of 10 has for breakfast.
But while many of the videos seem like harmless fun, there are some pitfalls you might want to avoid in the financial services landscape.
69 million views for #Mortgage
Interestingly, almost one-in-three Australians (30%) say they turn to social media for money guidance.
And Finder research shows people act on what they see, especially younger subscribers.
Almost one-in-two Gen Zs (48%) have taken action on their finances following guidance from a content creator, compared to 17% of Gen X.
That’s no real surprise. After all, the hashtag #TikTokmademebuyit has gained 31.8 billion lifetime views and counting.
What is surprising, is how many Australians head to TikTok or Instagram looking for home loan tips.
For example, #Mortgage content has racked up 69 million views on TikTok alone in the past 12 months.
Knowing who you can trust on TikTok
On one hand, it’s great that social media is breaking down money taboos.
And there’s no doubt that TikTok, Instagram, Facebook and LinkedIn can be handy sources of information for home buyers.
The catch is that almost anyone can post on social media, and when we’re talking about mortgages, which is the largest financial decision most people will ever make, the last thing home buyers need is dodgy advice.
So it pays to check who is behind the video.
Australia is one of the few countries globally where influencers on social media have to be suitably licensed before they can offer advice on financial products.
Mortgage brokers also have to follow strict industry rules when it comes to marketing and advertising. And many brokers are supported by their aggregator’s compliance team who double-check content for accuracy and other legalities.
However, TikTok and Instagram don’t just show videos created by Australians.
The platforms’ algorithms are designed to deliver more of the same sort of content you’ve shown an interest in.
So, it’s likely that if you start watching posts on financial strategies around home loans, debt recycling, debt consolidation or property investment strategies, you could come across content created by people based outside Australia, in countries where the rules are far less rigid, different, or non-existent at all.
The bottom line
No matter whether you’re just starting your home buying journey, or you’re ready for the next step on the property ladder, social media can be an entertaining and accessible source of information.
Just be sure to check that any content you’re viewing on home loans or investment property loans comes from a licensed mortgage broker based in Australia.
Better still, pick up the phone and give us a call.
Sure, we’d (probably) lose in a dance-off against your average TikTok creator.
But we can provide you with home loan information tailored to your situation. And that can give you a lot more value – potentially in a lot less time – than trawling through thousands of #homeloan videos and posts.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.