Investments: Considerations to make when choosing to invest or pay off a mortgage

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There is no doubt that successful property investment advice can yield significant returns.

Still, before making this decision, it is essential to commission the correct financial services to analyse whether investing in property or paying off your mortgage is a better option for you.

If you are fortunate enough to have available cash and are asking yourself whether to pay off a mortgage or invest, we’d like to offer you some considerations and encourage you to follow the process in this financial planning decision.

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Personal circumstances


An investment decision is inevitably a long-term one. By definition, the act of investing is to build wealth or profit and save money over a period of time. It is important to consider the time frames you have in mind to provide a return and protect your wealth when choosing to invest.

Are you looking at a long, medium or short-term investment and will your age and life stage support the commitment? For example, it wouldn’t make sense to commit to a long-term investment plan when you should rather be considering retirement planning.

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Investment objectives vs mortgage repayments


What are you hoping to achieve with your investment? Are you looking to invest in your longer-term future, earn an income or flip the property to make a short to medium-term return?

Whatever your reason, a considerable amount of time and research is required to understand the market and find the right investment property.

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What does it mean when the financial rubber hits the road?


Whether you choose to pay off your mortgage or invest, you will still increase your savings. Paying off a mortgage would mean reducing the amount you owe to the bank, whereas investing would mean additional portfolio diversification that may increase your overall wealth or revenue stream.

It is important to determine whether you want to reduce the time you want to spend in a relationship with your lender or bank or whether you want to invest in a comfortable future financial nest egg.

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Economic circumstances


Although Australia is currently boasting a compelling mortgage interest rate, considerations need to be taken into account on the inflation forecasts and whether the impending elections will impact these rates. Conflict in Eastern Europe and further delays on import-export issues due to COVID-19 continue to affect our economy, subsequently affecting us at some stage down the line.

To secure your financial future and discuss the financial services best suited to your life stage, contact us to book an appointment with one of our expert team members.

Need more information? Get in touch with Step Up Financial


    • 107 Moulder Street,
      Orange, NSW 2800

      PO Box 2499
      Orange, NSW 2800

    • (02) 6362 5445