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Mortgage contributions

• Paying off your mortgage quickly will reduce the amount of interest you’ll owe over the longer term. With interest rates currently at an all-time low, this benefit may seem less relevant at the moment, however, keep in mind that this won’t be the case forever.
• If your mortgage has an offset facility, you can put your money towards paying it off while still being able to draw down cash if you need it down the line.
• Finally, although it’s not an economic benefit, knowing that you’ve paid off your property can be a big stress reliever. So if the pressure of your home loan is weighing on you then don’t underestimate the importance of peace of mind.

Super top up

• Super is built on compound interest, so any contributions you’re able to make now are likely to grow by the time you’re in retirement. Canstar’s calculator says that an extra $200 per month contributed to super over 27 years could leave you with $77,113 extra upon your retirement.
• Sacrificing extra money into your super can come with tax benefits, since it will be taxed at the concessional rate of 15% rather than your usual marginal rate.
• One consideration if you’re thinking of contributing to your super is that you won’t be able to access the cash should you need to in the future.

The right decision for you will depend on a few different factors, like when you’re planning to retire and how long you’ve had your mortgage. If you’d like to chat through your options of course I’d be glad to talk.