Re: Should I pay off my mortgage completely?
Posted: Fri Jun 28, 2019 4:18 pm
Hello Brandon. Welcome to the forums.
It is a great position to be in when you don’t have any interest to pay on your mortgage. Well done.
Now, let’s look at the pros and cons of paying off your mortgage completely:
The pros:
We specialise in home equity loans.
Give us a call on 1300 889 743 or fill in our free assessment form to discuss your situation.
Cheers,
It is a great position to be in when you don’t have any interest to pay on your mortgage. Well done.
Now, let’s look at the pros and cons of paying off your mortgage completely:
The pros:
- The foremost benefit to not paying off your mortgage completely is easy access to funds you can use renovate and improve the value of your property, invest in another property or shares, take advantage of sudden market movements etc.
- A home loan is one of the cheapest credit you can get compared to credit cards, personal or business loans etc. so it makes sense to keep it open.
- The interest you pay on your investment loans is tax deductible.
- You don’t have to worry about the safekeeping of the property title as it’s secured safely with the bank.
- You’ll have mortgage repayments to meet so if some unforeseen event changes your financial position you may not be able to meet your mortgage repayment.
- You’ll pay more in interest over the life of the loan.
- There may be yearly fees associated with your home loan,offset facilities and/or redraw facilities and penalties if you make extra repayments.
- Some borrowers may be tempted to use the equity and redraw on their home loans.
- The property title stays with the bank.
We specialise in home equity loans.
Give us a call on 1300 889 743 or fill in our free assessment form to discuss your situation.
Cheers,