While there are many reasons to pay off a mortgage fast, one of them seems to be something most don’t usually think about. For over 28% of 55+ Australians, paying off their mortgage is still part of their daily lives. This adds a huge burden to their retirement which could have been entirely avoided.
Bigger Mortgages, More To Pay Off
While the number of over 55’s still having a mortgage has grown over the past few decades, the size of those mortgages has also grown too. This means that not only are these “almost retirees” still not able to focus on their retirement savings, but they’re also enduring more mental health issues too.
Our research finds that back in 1987 only 14 per cent of older Australian home owners were still paying off the mortgage on their home; that share doubled to 28 per cent in 2015Lead author Rachel ViforJ
This trend means that more and more Australian’s are playing a dangerous game. Will they be able to pay off their mortgage? Who knows. This is because the older you get, the more likely you are to have major issues crop up.
From health issues to higher chances of being made redundant, being 55, 60 or even 70 and still having a mortgage to slug away at makes for tough work. Even if you do succeed and pay it off while keeping your job and health, all that time you’ve spent putting money into your mortgage is time you can never get back.
Time that you should be spending beefing up your retirement accounts! Furthermore, with the way compounding interest works, that time factor is crucially important.
More Mortgages, More Mental Issues
Along with the financial woes comes of course, the mental health toll. Psychological surveys measuring mental health have revealed that simply having a mortgage reduces your mental health by 2-4%. Again, this is before it’s coupled with other life shocks like finding out you have cancer, needing hip surgery or just generally feeling tireder due to old age.
This 2-4% might seem “small”, however when discussing the results with researchers from Curtin University and RMIT University they commented:
These mental health effects are comparable to those resulting from long-term health conditionsViforJ
Plus while these ramifications are obviously going to be handled worse by the elderly, it’s a good reminder to those of us no matter what our age. As I’ve reiterated time and again here on MTM, having any sort of financial troubles is a huge source of friction and mental anguish.
If you’re in a relationship it can be even worse, many times finances are one of the main causes of divorce. If you respect your marriage or relationship at all, you will make absolutely, 100% sure that your finances are super in check. That also means your mortgage too.
The Time To Act Is Now
Obviously more and more elderly Australians are going into retirement and old age with mortgages of some sort in tow. It’s pretty straight forward to see that this isn’t something anyone wants.
Saving for retirement is hard enough without a huge, multi-thousand dollar debt dragging you back underwater every month so why not mutilate it right now? Are you 25? 35? 45? It doesn’t matter! It’s literally never been easier to kill a mortgage than it is right now.
Cash rates and thus, home loan interest rates are the lowest they’ve ever been meaning far more of your repayments are going towards paying off the principal rather than just giving interest payments to the banks.
There’s loads of absolutely free guides and posts on this very website to teach you exactly how to pay it off in under 10 years. There’s no tricks, no “go win the lottery” chances and absolutely no stupid advice like “stop buying coffee’s each day”!
No, we have an actual, proper strategy here at Mutilate The Mortgage. If all the free material is a bit confusing for you or you want even more step-by-step guidance you can get our fantastic 8 hour+ video course below. Whichever way you do it though, make sure that painful reality isn’t waiting for you when you retire. Fix it right now.
The benefits include: 1) How to pay off your mortgage faster than 99% of people with one hour a month of work 2) How to get rid of your debt and have the freedom to spend money on the things you love, guilt free 3) Clear outline of how to setup your expenses, mortgage and general finance 4) How offset accounts work and how to get the same result without being gouged by the big banks 5) How to cut through the crap and focus on the things that truly matter when taking down a mortgage 6) How to adjust the strategy so it works for you, even if you have kids, even if you only have one income 7) How to do all of these things and maintain a normal social life (and never be cheap).