5 excuses to NOT pay your mortgage off sooner!!

Some people feel that there are issues with attempting to pay their mortgage off sooner. Or they feel that it is unattainable. There are about 5 common reasons, or are they excuses?

1. I don't understand how it works

This is a reasonable enough problem; however your mortgage adviser can help you understand the basic principles. They can also explain the differences between fixed and variable interest rates, revolving credit and reducing facilities.

In the end, you will be able to understand what solution will fit and work with you, your current circumstances, and goals.


2. I don't have the time or discipline to do this every month

Here's another area where your mortgage adviser can help. Apart from tailoring a solution to you, they can also be your springboard for ideas.

You can also look at other tricks such as setting repayments to automatically include your extra mortgage contributions. You could also utilise budgeting software and services to keep you on the path. However, a little motivation and focus can go a long way!

3. We often don't have any spare cash to contribute to our mortgage

You could always look at how you spend your money each month, or look at ways of saving money each week. Do you need to be having takeaways 3 nights a week? There are lots of ways to saving money every month, and lots of tips out there on how to do so, after all isn't your mortgage your biggest bill anyway?

An extra $20 per week back into your mortgage can go a long way, and is also a good starting point.

4. It would get in the way of our lifestyle

This is fair enough, and it can be a fine line between paying your mortgage off and having fun! Here again your mortgage adviser can help you to set a loan structure in place that will work both ways.

You don't have to go whole hog today, but think about how much of a lifestyle you could have if you have a smaller or no mortgage to pay for in 5 years?

5. I have other debts to pay

There are two ways you and your adviser can approach this. Firstly, you could look to re-budget and focus on paying your short term bills off.

Secondly, you and your adviser could look into consolidating your debt into your mortgage. As the mortgage rate will be well below your personal loan rate, you could use those savings to contribute back into your mortgage. Therefore you are paying both your mortgage and personal loans off faster, saving you even more money in interest!

At the end of the day it doesn't have to be a daunting prospect and your mortgage adviser is there to help. If you can see how to do it, then it can be done!


Colin Leader NZIM Dip Man
Mortgage Adviser
Financial Independence Ltd

P 07 578 4414 ext 707 | 0800 694 672
F 07 578 4814
M 027 2535 069
E e-mail Colin

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