06 Feb 2017

Should You Pay Your Mortgage off Before You Retire?

Pay Off Mortgage Before Retirement

For many people, finishing off a mortgage as early as possible sounds preferable. The fun part of buying a home is actually owning it. The sooner your mortgage is paid off, the sooner you officially own the property.

However, the ins and outs of your mortgage may not be as simple as you think. In fact, it might make sense to intentionally hold onto your mortgage even past the day you retire.

Given today’s economic climate, you might stand to increase your wealth by opting to finish off your mortgage in retirement. Here are some things to consider when thinking about your mortgage and how it might relate to your retirement:


If you have a large mortgage and you’re in a high tax bracket, you should seriously consider keeping your mortgage. There are all kinds of tax incentives and perks that you may be able to take advantage of. Speak to your accountant about the specifics of your case. You might be surprised how much you can save!

Interest rates

A 30-year fixed rate mortgage will usually carry much lower interest near its end than your credit cards or student loans. It could be advisable to prioritise paying off cards and loans over your mortgage, minimising the amount of total interest spent.


Some homeowners opt to pay more towards their mortgage per month than required, for example, rounding up payments to even numbers. If you’re doing something similar in an effort to pay your mortgage off sooner, you might want to reconsider – those dollars might be more useful elsewhere.

Ask your accountant about tax incentives, savings and your superannuation options. You may find that you can make that money work harder for you than it currently is. Even if it means expanding your mortgage to have overlap with your retirement, your overall savings could end up being higher.

Mortgage House

At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.

But don’t worry, we can help with that.

If you’re thinking of buying a home, you can contact us for advice about the best options for you when it comes to your mortgage. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.

Click here to speak to us!

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