TikTok and Instagram reels are fast, fun, and free, but it’s crucial to be cautious about whose content you're engaging with, especially if you’re looking for a home loan.
If you’re reading this via social media, chances are you’ve also scrolled through a TikTok or Instagram video before. In fact, over 8.5 million Australians are active on TikTok, and nearly 14 million use Instagram, making both platforms major players in Australia’s social media scene.
During COVID lockdowns, social media kept us entertained with videos ranging from Korean office lunches to short clips of comedians and family breakfasts. However, while most of this content is harmless fun, there are some financial advice pitfalls you might want to avoid.
69 Million Views for #Mortgage
Interestingly, nearly one-third of Australians (30%) turn to social media for financial advice, and according to Finder, younger people are more likely to act on what they see. Almost half of Gen Zs (48%) have taken financial action based on social media content, compared to 17% of Gen X.
It’s no surprise given the popularity of content on platforms like TikTok – the hashtag #TikTokMadeMeBuyIt has garnered 31.8 billion lifetime views. But what’s particularly surprising is how many Australians use these platforms to seek out home loan advice. For instance, content tagged #Mortgage has accumulated 69 million views on TikTok in the past year alone.
Can You Trust TikTok for Financial Advice?
It’s great that social media is helping break down barriers to discussing money matters, and platforms like TikTok, Instagram, Facebook, and LinkedIn can be helpful sources of information for home buyers.
However, anyone can post on social media, and when it comes to something as important as securing a mortgage—the biggest financial commitment most people will ever make—it’s essential to be cautious.
In Australia, influencers need to be properly licensed to provide advice on financial products, and mortgage brokers must follow strict industry guidelines for marketing and advertising. Most brokers have their content checked by their aggregator’s compliance team to ensure it meets accuracy and legal standards.
But TikTok and Instagram’s algorithms can deliver content from creators worldwide, where the rules around financial advice may not be as strict or even existent. This means you could end up viewing advice from individuals not subject to the same regulations as those in Australia.
The Bottom Line
Whether you’re just starting your home-buying journey or you’re ready to climb the property ladder, social media can be an entertaining and accessible source of information. But always make sure the home loan or property investment content you’re watching is from a licensed mortgage broker based in Australia.
Better yet, why not give us a call? While we might not be able to out-dance a TikTok creator, we can provide personalised mortgage advice tailored to your situation, potentially saving you more time than scrolling through countless #home loan videos.
Whether you’re in Queensland like in Townsville, Brisbane, the Gold Coast, or elsewhere in Australia, we're here to guide you through your refinancing or home loan journey.
To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au.
Disclaimer: The content of this article is general 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 situation and may not be relevant to circumstances. Before taking any action, consider your 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.
