10 year vs. 30 year home loan

Have you ever stopped to consider why most people are completely fine with signing up for a 30 year mortgage?

That’s 30 years of allowing a home loan to determine most things in life. It impacts where you can live, how many hours you need to work, when you can retire, what type of lifestyle you can lead.

The banks set the terms of the loan and we just settle into a rhythm of monthly repayments with very little thought. By the time you reach retirement, you own one asset and have no income stream.

Have you ever stopped to wonder: is this the best way?

Spoiler alert, there is a better way

We believe that if homeowners start getting smart about their money, they can pay off their mortgage within 10 years or less.

On an average $400,000 loan, over 30 years you will pay back $700,000. By contrast, if you pay off the loan in 10 years, you’ll pay back closer to $550,000. That’s a significant difference! No guesses needed as to why the bank sets the life of the loan at 30 years.

Paying off your home loan as fast as possible is the first step to building a solid financial future. By accessing equity sitting in your home and putting your money to work, then channeling the profits back into your mortgage, you could be well on the way to smashing out your mortgage in 10 years or less.

10 year home loan: what would your life look like?

Just picture for a moment how your life would be different if you paid off your mortgage within the next decade.

By eliminating that debt quicker you could:

• Have a strong financial base
• Invest equity to built up your assets
• Create and meet other goals
• Retire comfortably

To find out more about how to pay off your home loan in 10 years, book a discovery session with Finnia.