Comparison site Finder surveyed over 1000 Australians and 30 per cent admitted they would take on a 40-year loan if it reduced their mortgage repayments to an affordable level.

This is the equivalent of 6.2 million Australians considering adding on a decade to the life of their home loan.

Only four lenders offer 40-year mortgages in Australia – all exclusively to first-home buyers.

The standard home loan today has a 30-year term and Finder’s head of consumer research Graham Cooke said adding a decade to your loan could be a huge financial misstep.

“While 40-year loans do offer a lower cost route to getting your first foot on the housing ladder, staying with them until the end can be very expensive,” Cooke said.

“While these loans may have lower monthly repayments, they typically end up costing a lot more over time.

“Essentially, these loans give you a reduction in your monthly cost in exchange for a significant increase in the cost of your mortgage overall.”

Finder research found an extra 10 years on a loan would drop monthly repayments for a $641,416 average mortgage by around $300 per month.

But it would also cost the average borrower $316,000 more in interest over the lifetime of a mortgage.

“I naively took out a 40-year loan when purchasing my first apartment, only to quickly realise how costly it would be in the long run,” Cooke added.

“Fortunately, I was able to sell the apartment a few years later.”

SCU, Teachers Mutual Bank and UniBank have previously offered 40-year loans specifically to first-home buyers.

Resimac, Pepper Money and the Police Credit Union also have in the past on a case-by-case basis.