If you've ever looked at your mortgage balance and thought, "Wouldn't it be amazing to be done with this?" — you're not alone.
For many, paying off the mortgage early is seen as the ultimate financial milestone. No more monthly payments. No more interest. More money in your pocket each month. Financial freedom… right?
Well, maybe.
As with most financial decisions, the right answer isn’t one-size-fits-all. And the question “Should I pay off the mortgage early?” really comes down to this:
What do you want your money to do for you?
Let’s unpack what that means — and what you need to consider before making the call.
It makes sense. Your home is likely your biggest liability. Clearing it gives a deep sense of psychological and financial security. For some, it represents the final step before feeling truly “free.”
Here are some common motivations:
Wanting to be debt-free before retirement
Reducing monthly expenses to allow for part-time work or career change
Emotional relief and reduced financial stress
A strong aversion to debt — regardless of maths
All completely valid. But that doesn't automatically make it the best financial move.
Mortgage rates — especially if you’ve locked into a fixed or low tracker rate — may be relatively low. Meanwhile, long-term investment returns (despite volatility) often average more.
Example:
If your mortgage interest rate is 2%, and your investments are returning 5–6% per year, then paying off the mortgage early might mean missing out on long-term growth.
But there's a catch:
Returns aren’t guaranteed. Peace of mind is.
This is where lifestyle financial planning comes in. The right answer isn't just about interest rates — it's about the life you want to build.
Ultimately, the decision should hinge on this:
Does paying off your mortgage early bring you closer to the life you want — or delay it?
Ask yourself:
Will this give me more flexibility and freedom to make a life change?
Does it reduce my monthly outgoings enough to enable semi-retirement or sabbatical?
Will I sleep better at night knowing the house is fully mine?
Or… could this money be better used to invest in something meaningful — time with family, career transition, building a financial cushion?
Sometimes, keeping the mortgage and investing the extra cash allows people to reach their goals sooner, not later.
Other times, the feeling of owning your home outright is what enables you to take a brave next step.
Neither is wrong. But the right decision comes from clarity around your life goals — not just numbers on a spreadsheet.
Mark and Sarah wanted to pay off their mortgage early before retirement. But when we looked at their full plan, we found that keeping a low-rate mortgage allowed them to semi-retire two years earlier with a more flexible income drawdown approach.
Jenny, on the other hand, was nervous about becoming self-employed. Once she paid off the mortgage, her monthly costs dropped significantly — giving her the freedom and confidence to finally start her own consultancy.
Same decision. Opposite outcomes. Both right for them.
Whether you're in your 40s thinking about early freedom, or approaching retirement and eyeing that final lump sum payment, the right move is the one that supports your life — not just your liabilities.
If you’re unsure, the best thing you can do is step back and look at the bigger picture.
If you're weighing up whether to pay off your mortgage or keep investing, let's talk. We’ll look at your whole financial life — not just your mortgage — to see what choice brings you closer to living the life you want.