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Retirement

Should Aussies focus on their mortgage or super?

  • January 07 2020
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Retirement

Should Aussies focus on their mortgage or super?

By Cameron Micallef
January 07 2020

With median dwelling values continuing to rise and the cost of credit falling to a historic low, Aussies are being told to focus on their mortgage over superannuation.

Mortgage or super

Should Aussies focus on their mortgage or super?

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  • January 07 2020
  • Share

With median dwelling values continuing to rise and the cost of credit falling to a historic low, Aussies are being told to focus on their mortgage over superannuation.

Mortgage or super

In a research report, Morningstar analyst Chanaka Gunasekera noted that sound mortgage advice has the biggest impact on a person’s finances.

“For the average Australian, superannuation is not their largest asset, most of an average Australian’s wealth is from bricks and mortar assets, including their homes. The most important advice for these customers is how to deal with their mortgage,” Mr Gunasekera said.

Daniel Walsh, Your Property Your Wealth director and buyer’s agent, said savvy investors are able to take advantage of low interest rates to get ahead on their mortgages. 

“Investors with variable mortgages have seen interest rates tumble by 1 to 2 percentage points over the past year,” Mr Walsh said.

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“Some investors have also opted to refinance now that the lending environment is more favourable to them, which has resulted in their repayments dropping even more,” he stated.

While noting the importance of paying down mortgages, Kate Browne, personal finance expert at Finder, said it is important to break down large goals such as paying off a mortgage into achievable pieces. 

“Rome wasn’t built in a day; starting a successful business or paying off the mortgage takes time. Ambitious goals like these will rarely be accomplished in a year. 

“Create smaller milestones or targets to reach every few months. This will help you stay focused and prevent resolution burnout. Think of your grand plan as a marathon, not a sprint,” Ms Brown said. 

nestegg has previously reported how taking out a home loan leads to Australians engaging with their superannuation.

Should Aussies focus on their mortgage or super?
Mortgage or super
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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