How to Pay Off Your Mortgage FASTER in Australia | 30 Year Mortgage in 10 Years! (Whiteboard)

[@PersonalFinancewithRaviSharma]

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[@peter-d9f3l]

#2 and #5 sound like they only come into play if you can't do #1. If you've got a 100% offset account (and that's where your repayments are coming out from), changing your payment frequency or increasing your repayments saves you nothing.

[@shahg5524]

At 7:15 you talked about investment properties paying off primary mortgage but then what do you do with the debt on the three other investment properties? How do they get reduces or eliminated ?

[@juantokyo_]

If interest only on the investment then that debt doesn’t get paid off. You plan for capital gains on that investment property. Alternatively, if P&I then it pays itself off. Having said all that, the numbers have to line up and will vary from property to property.

[@geneg3776]

The thing I have trouble with is working out how much to leave in your offset account and how much to make in extra payments. Also considering having the extra money as a buffer to make repayments if the interest goes up. Would love to hear any suggestions.

[@NoRegertsHere]

The Money Guy (KZbin financial planners based in US) say pay off high interest debt first, then build an emergency fund of 3-6 months expenses. Assuming you have no credit card debt or car debt or HECS. So 3-6 months emergency fund in the offset. They have a ‘financial order of operations’ or FOO that has further steps to establish solid cashflow and financial base.

[@dimpalpatel5188]

In a 100% offset account, there is no difference if we repay the mortgage weekly or monthly because whatever we pay extra by paying weekly instead of monthly, that extra money works the same way in an offset bank account. (But by keeping money in offset we have more cash liquidity ). This is my view. Could anyone correct me if I am wrong?

[@m0un106]

If you pay weekly or fortnightly your principal reduces faster than monthly irregardless of whether you have an offset or not.

[@KJxxoo]

Can you do strategy 4 backwards? We just purchased our first home, small mortgage of $142k. We specifically bought here because the rental yield is good, but it’s not where we want to spend our lives. Our plan, is to get this house to a point where we can rent it out for maximum return (positive cashflow) and then buy a more expensive home in the area we want to be, with the cashflow from this house going into our next mortgage (ideally I’d like this one completely paid off before doing that but we’ll see how long we can tolerate living here.. lol). I’m not sure if that’s the best strategy though.

[@Red_1976]

I did this. It works. Yu can keep doing it & in 10years you can have at least four, two paid off one almost and one you’re living in & paying off. Snowball effect.

[@2ristaph635]

Hi Kj, I'm Jacob. I'm working in a Mortgage Broker Office here in Sydney. I just want to reach out, Maybe we can help you on this, are you looking for the lowesr interest rate for the following: Home loan, refinancing a loan, personal loan, car loan, business loan, smsf ? Which of these you want to inquire to our consultant

[@Gbdnd]

Here in Windsor, Ontario, Cananda, a 2 bdrm 50's wartime house in a good neighborhood is now in the $350,000 range and getting multiple offers. Tough for people to even get into the market. We are hoping for a drop soon!

[@Gbdnd]

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[@annalisajoy9755]

@@Gbdnd How are you investing? I have around $145k, only index funds, half in s&p and half in vigax, i need something more aggressive to grow my portfolio, What do you think I should try?

[@Gbdnd]

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[@annalisajoy9755]

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[@maycheung3506]

My question is why need to pay off investment fast? They are good debt and the best weapon to fight against inflation. I would use my spare money to invest in either US stocks, it’s not difficult ti gain10% return in a year (in a 4 year term) why putting money in offset account , having benefit of less paying 3.15% which is tax deductible. My calculation is 3.15 % tax deductible so I only get benefits of 1.7% , inflation rate is 3.5% so I lost 1.8% every year, by keep buying investment properties which bring you positive cashflow when the time comes to retirement just sell couple of the properties and covered all the loans please let me know if I am wrong, just brainstorming

[@NoRegertsHere]

It’s a strategy that will work. The thing that you might not be considering is the risk of carrying that much debt for decades. Granted, in 10 years, could sell down and cover the debt if needed to, but will pay capital gains tax, probably about 25% of the gain. Have a look at the 4% rule of thumb as another idea to brainstorm

[@sabaffira]

Does it make sense to pay off mortgage first as the interest rates are crazy now? At least I won’t get taxed on interest saved vs income in shares or investments.

[@johannpsaila]

Great post, I'm in the process of paying off our 2nd home, we have been blessed.... We use dividend income to help, but will contact you in the near future

[@benjamesv]

Why is the finance world so unnecessarily complex? So complex, to the point where people need to find educational content on how to get a home loan and pay it off. It's ridiculous. It should be simple and accessible for everyone, a child should be able to grasp it. If I'm an animal in the wild, finding myself shelter is simple, that same simplicity should be the norm for human society, but it's not. This economy is a joke. We should all be ashamed that it has come to this.

[@kc1274]

Complaining here doesn’t make you money. Better learn the game and adapt to it. There is absolutely nothing you can do about the system.

[@benjamesv]

​@@kc1274 I find people who adapt to a fundamentally 'sick' system tend to become sick themselves in the process. In Australia, we have a lot of people who have adapted to the 'sick' system of our housing market, and as a result, the whole population sees housing as an "investment", when it's not, housing is a basic necessity. As a result, we have all these people who have adapted to the sick system buying all these houses expecting to make money off of it, like it's normal... it's not normal to make $100k on your house in a couple of years. Housing should be like bread, anyone can afford a loaf of bread, the price of bread rarely changes, and bread is in abundance everywhere, and that's how housing should be. In Australia, people are fighting over run down shitholes, and when they buy it, they feel 'lucky', haha, they aren't lucky, they are deluded. Anyway, It's better to speak up about it, than stay silent, and I'll complain anywhere and anytime I feel its necessary, so that others may see a different point of view and stop deluding themselves into thinking that our current housing market is normal and just the way things are, so we all better just accept it. lol

[@polaropposites1701]

⁠@@kc1274fuck sake so let me get this straight - the bloke can’t even make a valid complaint on a KZbin video?!you just boil it down to ‘it’s not going to make you money’… Yeah right don’t express freedom of speech in pointing out what is an overly complex shit system especially when you’re not educated anything about it, you come out of school where your taught how to basically read, write and that’s about that, he’s making a valid point tosser

[@rorydart]

It is not complicated

[@polaropposites1701]

@@rorydart yeah nah…

[@deadspeedv]

Making additional weekly repayments will have no benefit if those repayments were already in the offset account.

[@dtd1986]

Making additional payments into the offset account will though.

[@jarreddenning8846]

Where are you finding positive geared properties in Australia? House prices and interest rates make it extremely hard to find any property that is positive.

[@NoRegertsHere]

Video was made when 2% interest rates were around

[@thecoolkrish]

Hey Ravi, Just with the 3rd strategy when you refinance your HL current bank cannot do 100% offset if your account is with the another bank. Do you know any bank where you have a loan say in Bank 1 and its offsetting the account from Bank 2. I dont think its possible at all.

[@BDHO73]

No. Not possible.

[@jarrydlouwen9594]

Is it better to have a 100 offset with a higher interest rate then have no offset at a lower rate???

[@cashbuyers7650]

If you have 100k cash in offset against $100k in mortgage and current interest rate is 6 percent. This you are not paying anything but your PPOR is getting tax free 6 percent return on your mortgage

[@d.j.z.j]

I thought consolidated loans is. A bad move as it extebds the loan and interstat terms hmm. So what if i wamt to add a kitchen to ppor should i do it as consiolidated cost?

[@lunaluna1721]

How can I increase payment frequency? Need to talk to the bank ?

[@MrAmarz]

Hi Ravi i am interested to have a group or one on one session... please advise how could i do that

[@GAZMAN2002]

Debt consolidation is not smart unless you are going to smash the loans out fast. It's not just about interest rates it's time as well if you take 5 year car loan into a 30 year loan then you pay much more interest

[@d.j.z.j]

Exactly what i thought

[@Anearthchild]

HI Gaz - yep if you only pay the minimum - however if you keep paying the same amount of cash as before, you can really smash out your home loan. Some of my clients where we've saved $1500 a month through debt consolidation are using those savings and are now paying off their home in half the time. With budgeting and building financial literacy debt consolidation can be a huge game changer.

[@yourgesicht]

That is such bad advice and assumes someone pays the min which is dumb

[@jacqepapara7898]

Thanks for the advice Ravi 🙂

[@tonychristensen6714]

Im down to 168k on my house 🙂

[@2ristaph635]

Hi Mate, I'm Jacob. I'm working in a Mortgage Broker Office here in Sydney. I just want to reach out, Maybe we can help you on this, are you looking for the lowesr interest rate for the following: Home loan, refinancing a loan, personal loan, car loan, business loan, smsf ? Which of these you want to inquire to our consultant

[@benbansal]

Very nice, hope to get close to that soon

[@dtd1986]

Nice. I'm at around the same mark. You've probably got it down a lot lower by now but well done.

[@TupuniRiki]

Do you think offset is better than capitalization of your home loan?

[@method341]

no, offset is overrated because you're getting reamed with huge interest right up front - the banks love this

[@weikingteh6707]

On paying the loan more frequently (2), would that not apply if I have an offset account where I want as much money sitting in there for as long as possible?

[@sjj7236]

Yes I was thinking the same thing.... did you get an answer, or just maybe sending you to a course to buy ???

[@gnikable]

@@sjj7236 No, I still believe having $$ in the offset account for longer works - that includes paying utility bills quarterly (instead of monthly) wherever possible.

[@missnickysays]

Are you a buying agent here in Australia? Can you help?

[@abhineet1993]

Hi Ravi which bank do you deal with for your home loan needs ? And also do you get your loans on variable or fixed for the cashflow properties ? Thanks man

[@elmin2323]

Buy commerical properties

[@cfwoo77]

Are u licensed? Suggest people refinance their car loan to home loan? Do u understand what is the tax implications when people sell their house ?

[@jackieheaney8246]

I have an offset but the interest rates are so high that it is costing me a fortune to keep up. I pay weekly.

[@naaniratify8657]

Strategy 4 is impossible these days.

[@PersonalFinancewithRaviSharma]

Still possible bud. We have plenty of clients doing this even in todays market 👍🏽

[@naaniratify8657]

@@PersonalFinancewithRaviSharma Sorry I can’t concur with you. Happy to look into the options if available bud!

[@xkimopye]

@@naaniratify8657 it is possible, look at less desirable towns, Ceduna for example. Or buy something negatively geared in a nicer town and wait for the rent to increase. I have 4 properties that became positive after about 4 years. Do your homework and you will find them.

[@callumsmith338]

@@PersonalFinancewithRaviSharma guarantee this is gonna age like milk

[@eddiebristowe-manatoga4515]

Like they keep saying, if it was simple everyone would do it, this brings another problem.

[@squeezeeverypenny4996]

I'd love to hear about your stance on split loans. I use your Velocity of Money strategy as i don't plan to keep a heap of money siting idle in the bank to only have a couple of hundred dollars a year on interest saved. Having your money working is key!