facebookWhat are some of your strategies for paying off your homes? Paying as little as an extra $100 per month can take 5+ years off a 30 year mortgage. Is it better to invest that money? - Seedly

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Anonymous

03 Dec 2020

Property

What are some of your strategies for paying off your homes? Paying as little as an extra $100 per month can take 5+ years off a 30 year mortgage. Is it better to invest that money?

I would love to hear some strategies and success stories on members paying off homes.

Discussion (2)

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Aidan Neo

03 Dec 2020

Financial Services Consultant at Manulife Financial Advisers

Hey anon,

I believe it's all up to your personal preferences!

By paying off extra $100 / month can help you reduce your mortgage interest and pay off your flat earlier. However, you will be losing out on opportunity cost to invest on other assets. You will be compromising liquidity as your money will be lock towards your property. But of course, in the future, if you get to sell your house at a profit or enbloc, then good for you!

There is no better cause everything is scenario based. If I invest and lose money, I'd rather pay off my flat earlier since the mortgage interest is more or less level to a certain extent. But if my investment work out to be better than the mortgage interest, then of course my bias will lean more towards investing. So, at the end of the day, you got to decide what works better for you and your appetite towards risk as well.

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