Making extra payments on your mortgage might be something you are considering. But before you do, let's have a look at some of the debts you may have.
Maybe an outstanding balance on your credit card, perhaps a car loan and of course your mortgage.
A good starting point before you consider paying off your mortgage early, is to try and pay off these items with the higher interest rates first.
Once you have cleared a lot of this other debt, lets look at the impact of making extra payments on your mortgage. So lets say your mortgage repayments are $3,000 per month, and you would like to make additional payments of $1,000 each month.
With 10 years left on your loan at say 8%, this is going to save you around $40,650 and you will own your home 3 years and 3 months earlier. Just by contributing a little extra each month.
One of the benefits of this strategy is its flexibility, as it gives you access to your cash if you need it through things like a redraw facility. But you do need to be disciplined enough not to keep redrawing your money.
With any investment strategy, what's important is to know what your ultimate financial goals are. And that's where a financial planner can help.
So why not give your member service team a call now and remember the earlier you start planning the better.
What a wonderful dilemma!
asking yourself this question, then you’ve
got what counts; financial discipline.
You understand where your expenditure is
going and how much you can save.
The simplest, and probably best advice, is that you should
just do something. Whether you choose additional super
contributions, extra payments on your mortgage, or a
combination of both, you’ll be improving your long-term
Give your member service team a call on 1800 620 305 and remember, the sooner you start planning the better.