What to Do When Your Mortgage is Nearly Paid Off
Paying off your mortgage is a massive achievement – one worth celebrating with a glass of bubbly (or two!). But before you pop the cork, it’s worth thinking about what happens next.
When you're close to owning your home outright, there are some strategic moves you can make to ensure your money keeps working for you.
1. Check Your Loan Structure
Now is the time to review how your loan is set up. Do you have the features you still need? Are you using them effectively?
Switch to weekly or fortnightly repayments: Doing this means you make more repayments per year, helping you chip away at the balance faster.
Use your offset account: Any savings in an offset account reduces the interest you pay. Even small amounts add up quickly.
Assess fees: Some older loans have ongoing monthly fees or lack modern features. We can help you switch to a low-fee option or even a no-fee account if you’re nearing the end.
This final stretch is about optimising your money, not just coasting.
2. Keep Your Loan Open (Even if You Can Pay It Out)
Here’s a surprising strategy: consider keeping a small balance on your home loan, even if you can pay it out today. Why?
You keep access to your redraw or offset facilities
Your home loan interest rate is often lower than other personal loans
You retain a flexible source of emergency funds if needed
Some people choose to pay their balance down to $1 and leave the account open. This gives them options later without needing to reapply for credit.
3. Plan What’s Next
Paying off your mortgage doesn’t mean your financial journey ends. In fact, it opens the door to some exciting possibilities:
Redirect repayments into your super – turbocharge your retirement savings
Start investing – in shares, ETFs, or even a second property
Upgrade your home – use equity to renovate or improve your lifestyle
Reduce your work hours – free up time for family, travel, or personal pursuits
Tip: You’ve likely built significant equity. Let’s explore how you can use that to fund your next goal – whether it’s growing your wealth or simply enjoying more freedom.
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