Advice matters
How to stay motivated for your mortgage

When it comes to making an investment in your future self, paying off your home loan as quickly as possible can be a really good option.

While many people take out their home loan over 25 or 30 years and pay the minimum repayment amount their lenders require, paying extra can help you reduce the total amount you repay. That’s because the extra money goes on to reducing the principal amount owing, meaning the interest payable is calculated on a lower balance.

That said, it can sometimes be tricky to stay motivated and repay your mortgage faster, particularly if you still have a relatively long time until you’re debt-free. Here are a few ways to help you keep your eyes on the prize.

Set small goals

If your home loan is hundreds of thousands of dollars, it might seem a bit daunting to think about the prospect of trying to pay that off. But if you break it down, it’s likely to seem a lot more manageable.

Your goal could be to pay off an extra $100 a fortnight, $5,000 a year or another amount that fits with your budget and plan. Smaller amounts are often much easier to visualise, target and then achieve. Our SHARE advisers can help you work through what is achievable for you.

Keep your end goal in mind – and your “why”

There are probably lots of things competing for your money and other things that are tempting to spend on. So, try to keep in mind why you’re focusing on getting rid of your home loan as quickly as you can.

Is it because you want the freedom of being mortgage-free? You want to build equity for other ventures? Or maybe you just want to limit the amount of interest you have to pay a lender?

Keep your “why” in mind – whether that’s just a mental reminder to yourself every so often or something more tangible like a mood board displayed somewhere in your home. Regular meetings with your home loan adviser can be another way to keep your focus.

Identify milestones

To keep yourself on track, identify milestones that you want to hit. Maybe you want to get your balance below a certain dollar amount by a set date, or you want to make a certain number of additional payments each year.

It can be helpful to make your loan balances visible on your internet banking accounts to help you identify the milestones you’re ticking off, if your lender offers this as an option.

Celebrate your victories

Remember, you don’t have to wait until your balance is zero to celebrate. When you tick off a milestone, or reach a goal, take the chance to celebrate. Noting small wins can be really motivating when it comes to achieving a longer-term goal.

Like to talk?

If you’d like to work out the best way to tackle your home loan, we can help. SHARE advisers are on hand to help with things like home loan structure, loan planning and negotiating with lenders on your behalf. If it’s time to get your home loan sorted, drop us a line.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.