Why you should pay off your home loan quicker
With interest rates rising and not expected to fall any time soon, it’s never been better to put a plan in place to pay your mortgage off sooner rather than later.
That way, you can get back to enjoying the finer things in life, while also setting yourself ahead of the pack.
Since the beginning of the year, the Reserve Bank of Australia has announced many rate increases which have been handed down to lenders. While some people may still be coasting along, there are many that are starting to feel the pinch.
The real impact of rising interest rates
If rising interest rates have left your back pocket feeling rather empty, you’re not alone!
In fact, over ⅔ of the Australian population will be impacted at some stage by the interest rate movement we’re currently experiencing. Here’s a quick breakdown of home ownership in Australia:
- 31% of homes are owned outright
- 35% of homes have a mortgage
- 30% of people are renting
For the 31% who own their homes outright, the movement of interest rates will have little to no impact on their lifestyle. But, if you fall into one of the other two categories, then you may begin to feel the impact of rising interest rates over the next few months.
This is why we always recommend trying to pay off your home loan in 10 years vs. 30 years.
Not only will it put you ahead of the pack when it comes to financial freedom, but it also protects against financial pressures.
What are you doing to create home ownership in 10 years?
There’s never been a better time to look at putting a financial plan in place to pay off your home loan in the next 10 years.
If you’re able to pay your home loan off in your 40s and 50s, while your income is still relatively high, this will allow you time to create passive income streams that lead to financial freedom.
Creating a financial plan will set you on the right path to paying your home loan off in 10 years. Our monthly Scorecard Workshop is designed to equip you with strategies that will help in achieving this goal.
Register for the next Scorecard Workshop now: https://finnia.com.au/scorecard-workshop/