How To Pay Off Your Mortgage FAST! || SugarMamma.TV

Hi guys welcome back to Money Monday.
So, yesterday I was having a conversation with a really good friend of mine and I
was sharing with him that one of my biggest financial goals that I’m most
passionate about is paying off my mortgage as quickly as possible. Ideally
having the whole mortgage paid off in less than 10 years. Now, whilst people
that was a really admirable goal to have he actually thought it was quite
ridiculous and told me that it was completely unattainable and totally
unrealistic I would be honest I actually felt quite sorry for him because I
realized he doesn’t know that the potential that exists within him to
achieve amazing financial goals when you put your head heart and mind to it. So, I
want to share with you and my special friend things that you can do today that
will help pay off your mortgage so much faster and save you tens of thousands of
dollars if not even hundreds of thousands of dollars an interest and
help you create that financial freedom a lot sooner.
So, here are my top 10 tips as to how to pay off your mortgage as quickly as
possible. Tip number one is to keep it simple.
Often only take out new loans. The banks are really keen to sell us all these
bells and whistles such as credit cards and line of credits and often these
things come with expensive fees that can really eat into our budget. Actually what
I don’t like about these things is they can often be distracting. Create a false
sense of security especially if you’re less money, sitting in your line of
credit but don’t realise you’ve actually got to pay your home loan off and they
also really slow you down in your ability to peripheral mortgage as fast
as possible. So, my advice is have a very simple home
loan principle and interest and focus all your energy on paying that loan down
as quickly as possible and of course follow under the next steps. Tip number
two is to really check your mortgage and stay informed now in the first year of
taking a mortgage most of your mortgage repayments are serving pretty much 90%
of the interest payment you’ll barely see any reduction in the principal loan.
Now, this can be quite depressing but what I recommend you do because energy
flows where attention goes. Every time you pay your mortgage log in to your
internet banking have a look at how much of the loan is actually reduced. Each
month you will see that each repayment is servicing less in interest and more of the loan reductio. Now, this is when you can get
excited because you know from this point onwards your loan is going down and your
loan is getting smaller which means it’s easier and quicker to pay it off. Tip
number three is to find small but regular increases in your mortgage
repayments. Never underestimate the power of small extra repayments over the long
run. For example, if I take a four hundred thousand dollar mortgage with an average
interest rate of six and half percent I pay the minimum mortgage repayments over
a 30-year term but then I increase my mortgage repayments by fifty dollars per
week which is say the cost of lunch every day at work. I will save over a
hundred and twenty thousand dollars in interest over the life of the loan and I
will pay off my home loan six years earlier
you’re probably wondering that’s great canner but where am I going to find an
extra $50 per week to increase my mortgage repayments well actually there
are lots of things you can do you could go through your budget look at reducing
things temporarily or cutting things down or completely cutting them out to
find that extra $50 per week you could also take any potential upcoming pay
rises with the architects difference and increase your mortgage repayments by
that or even more you could even look for some extra work maybe on the weekend
you could also follow along with a thousand dollar project and see all the
weird and wonderful things that I’m doing to help come up with extra cash
and finally you could just occasionally exercise some self-control or willpower
and simply say no to buying a few things here or there or going to a few things
here or there that could be quite expensive those little things really do
add up across a period of a year tip number four is to try and pay any lump
sum cash amounts onto the mortgage. Now, if I have to take that same loan for
$400,000 with an average interest rate of six and a half percent over a 30-year
term and I put say $10,000 as a lump sum towards that home loan within the first
three years I would save over forty four thousand dollars in interest and pay off
my home loan one year and nine months sooner. So again, you’re probably
wondering where would I come up the nectar $10,000 magically out of thin air
to pay the love sum towards my mortgage well I accept no excuses as I said you
can follow along with $1,000 project I managed to come up with
$32,000 over a 12-month period so imagine what you could do but again
there are the same things you could get a tax refund you could get a commission
check or even a bonus you could sell a few things you could get an extra
part-time job or take on some extra projects at work again the sky’s the
limit and what you put in you will get out number five is to maintain mortgage
repayments now this is in particular reference to an interest rates are going
down no matter how tempting or no matter how much pressure or encouragement the
bank tries to take for you to reduce your mortgage repayments don’t it’s a
trap it will delay you paying off your mortgage it’ll end up paying a lot more
money in interest trust me when interest rates are going down don’t fall into the
trap make sure you maintain your mortgage repayments so that you are
actually servicing and reducing more of the mortgage principal and paying a lot
less interest to the bank of the consequence number six is start today
the sooner you start tackling paying down that mortgage the better the
earlier you start paying extra payments making lump sums channeling all your
energy into paying off that home loan as quickly as possible the bigger the
impact you’re going to have in that example where I make an extra $50 per
week in mortgage repayments on that four hundred thousand dollar loan if I were
to delay that process and start making those extra repayments in say year eight
with a $50 per week my ability to reduce that loan isn’t quite as dramatic it’s
still great don’t get me wrong but would mean that I only save fifty six thousand
dollars in interest and I only saved three years and five months off my home
lines it’s never too late to start paying off debt but this is just
something to take in mind if you’ve just recently taken out a new homeowner so do
not delay in paying off your home loan tip number seven is to try and pay your
mortgage on a fortnightly basis instead of a monthly basis now very simple math
behind it because there’s twenty-six fortnight’s per year and only twelve
months per year you actually managed to sneak in an extra payment per calendar
year so that will actually help in reducing that principal which means
you’re paying a lot less interest which means you’re paying laws of principle
off answer compounding interest working for you for
some people on a really tight budget this can be a little bit challenging
with managing your cash flow so if this is impossible that’s okay don’t fret
just make sure you pay your mortgage repayment the moment you get paid so
it’s up the top of the list of pros of expenses tip number eight is shop around
the difference in an interest rate of say half of the cent doesn’t really
sound like much of a savings especially over a 30-year loans but that couldn’t
be further from the truth on that four hundred thousand dollar
loan difference between of paying interest rate of C six percent versus
six and a half percent means you save about forty seven thousand dollars in
interest now I don’t know about you but I would much prefer that forty seven
thousand dollars paid off my mortgage than in the bank’s pockets offense to me
however one very important note with refinancing if you do decide to shop
around do not restart your mortgage term for example say you’re seven years
through a thirty-year home loan and you decide to refinance with another Bank
they’ve got a much better interest rate do not go with the bank’s new 30-year
term that means you are restarting a whole journey of paying off your home
loan insists that you go to a 25-year low home loan period or a 23 year home
loan period or even sooner if you can manage the mortgage repayments because
you want to make sure you’re not delaying the process of making that
final magical mortgage repayment moment where you see your mortgage got to the
magic number of zero tip number nine is to use offset
facilities and redraw facilities to park any space savings that you might have
this will mean that you are able to save interest of your home loan in the
meantime because your payment will be reducing more of the home loan rather
than just servicing the interest because the interest will be less if you’re
number 10 is to understand why it is so important to pay off your home loan and
then to make it your number one financial goal when you have no mortgage
it means you can potentially retire a lot sooner because your cash flow does
not require servicing a whopping great big stressful mortgage it means that you
can take a career path it means you can help more family and
friends around you it means you can give more to charity it means you can go on
more regular holidays and buy more nice things most importantly it gives you
more time and more financial freedom so if you have a home loan and paying off
your mortgage wasn’t one of your financial goals make sure that you make
it today and make sure you take the right steps and the right actions today
to start paying it down and get excited about it getting smaller and smaller and
more manageable you will feel the benefits of less financial stress on
your shoulders I promise and to my very special friend I hope you now realize
that you too can also pass your home loan in less than 10 years and you are
very lucky to have such a good friend that is a financial planner and is going
to show you exactly how now on that note if anyone is interested in having a
Skype consultation with me where they discuss their financial goals head over
to the sugar mama website and you can book online now this week I’ve set
myself a bit of a cheeky challenge I’m going to see if I can raise a thousand
dollars in less than seven days so to try and do this I have gone a little bit
crazy and I’m selling a whole pile of stuff on eBay so I’m going to put in the
description box below my eBay account and you can see if I can actually
achieve this challenge or not fingers crossed someone wants to buy my stuff
anyway if you’re interested in setting yourself your own challenge for the six
seven days let me know how you go if you haven’t already please make sure you
subscribe and this week’s lifestyle our video is another fashion capsule
wardrobe video and I cannot wait to share it with you I hope that you’re
having a great start the week and I will see you on Thursday evening for
lifestyle love ciao for now bye

91 thoughts on “How To Pay Off Your Mortgage FAST! || SugarMamma.TV

  • Yes! People should take time to review and shop around for a better mortgage rate WITHOUT increasing the term. Some really great advice here. Thanks Canna and good luck with your challenge this week 👍

  • Sadly ,, If you want to live In our capital cities , and your parents do not have spare $100k to help with the initial deposit , young Australians on an average income will NEVER be able to buy there own home. There is Buckley's chance of a young couple saving a deposit , while they are burdened with ever increasing rental payments and cost of living increases.

  • Hi Canna, I finally want to start putting my passive income to better use by investing it. Obviously I am really interested in the Australian shares you prefer and suggest all the time because I trust your opinion. And since my parents migrated to Australia they also love everything about Australia and its economy, compared to Germany where we are from. So you of course I am biast now 😉 But does it really make sense for me to invest in Australian bonds/stocks while I live, work and earn money in Germany? I probably won't be moving to Australia anytime soon, too, unfortunately….

  • Hi Canna, another fantastic place other than ebay/gumtree that I've found to sell things is on Facebook's market place. You need to have the facebook app to access it (it's the little mart icon at the bottom of the screen), but it's really simple and easy to use. Good luck with the 7 day $1000 challenge and thanks for another great video!

  • Hi Canna: you want to tell your friend to get a positive mental attitude. You can do anything with a positive mental attitude. As far as paying off the mortgage your spot on ..! Good luck with the thousand dollar project this week and selling your things. I have run out of things to sell.

  • hey hi, i just like the idea of paying fortnightly instead of monthly EMI, i just bought a house 4 months back. but i also have personal loan which i'll manage to pay off in 2yrs. and after that i'll be able to pay fortnightly same EMI, which means i can pay off my home loan in 10 yrs which is currently 20 yrs. thanks

  • Hi Canna great inspiring video. I've been paying down my mortgage religiously the past 6yrs. I've even emptied my change jar out every now and again & added lol. I was down to $17,000 left last year but my 16yr old car died on me so decided to treat myself to a brand new car. Just a hyundai i30 so I redrew $20,000. I've already paid off $10,000

  • Such great advice, I'm one year into doing this, I'm saving 50% of my income and trying to clear the last of the balance in next three years (I'm 40). First found your channel around this time last year wondering where to even start!

  • Thanks again for your inspiration, I've started paying a little extra off my mortgage over the last couple of months and I'm managing to go without clothes!! Xx

  • Hey Canna, I've taken your advice on mortgages and it has truly changed mine and my families life !
    Thank you so much, you are truly inspirational x
    Andy ( United Kingdom )

  • I've not got a fixed rate mortgage but I believe you can't make extra payments on a fixed rate home loan. Do you know if that's the case?
    What to do in that situation?

  • Does it include your lovely Celine Bag? 😉. Great Watch! Since discovering your channel in Nov last year…. 1. I readily sell items 2. Increased my mortgage payments 3. Set up a budget… Thank you for being so motivating and inspirational

  • I love your tips! My bf an I are still saving for our deposit but I love watching your videos so I know what I'm looking for when we do finally take out a mortgage for our first home 🏡 xx

  • Loved this, the content was fantastic, plus you seemed totally in your zone and the camera angle was powerful and commanding. Nice work 🙂

  • This was such a fantastic video Canna! Luke and I are hoping that we might be in a position to buy our own home in the next year or so (crossing fingers), and I don't think I'd really realised just how much an additional $50 per week could really change the outcome with regards to how much additional interest and also how much more quickly you can pay off your loan. Great advice as always! xx

  • I have a serious question though. First time I've heard of offset/redraw facility, so I looked it up (for Canada specifically) and am seeing answers about how it's essentially an open line of credit? Does this go against one of your first points about having lines of credit??? Or am I reading it wrong? Help!

  • I work in a brothel , needless to say it took me almost no time to pay off my mortgage on my 2 unit bedroom in Bondi Junction.
    Many happy endings paid off my mortgage not to mention the amount of exorbitantly priced BBBJs i gave help me pay off the mortgage quickly.
    If anyone wants to earn some extra cash then just contact me.👄👅💰
    Your welcome 🤔👍

  • Hi Canna, i was wondering, how is paying mortgage payments on a fortnightly basis instead of monthly basis better? do you mean paying double the amount of the mortgage payment on a monthly basis? thank you! xxx

  • Hi Canna, I love your videos! I just made $150 on market research thanks to your inspiration- thank you universe! And thank you Canna 🙂

  • Thank you for all the information. You look exceptoinally pretty and your hair and skin well turned out. Hope you sell all your items on ebay…blessings love your videos.

  • Thanks Canna! Great video! Was wondering if you'd be able to a video on (1) paying down mortgage vs using the money to invest in shares & (2) personal insurance tips (inside vs outside super, stepped vs level premiums, how to work out how much you'll need, trauma v income v TPD and how to work out what % of your insurance budget to allocate to each). Love your work 🙂 All the best!

  • Great video Canna! It was so useful that you provided short and long term comparisons. Could you please consider doing a video to touch on HECS debt? Would love to hear your thoughts on how low/high a priority this should be.

    Thanks 🙂

  • Awesome video Canna! These are great tips that are so achievable if you put your mind to it. Thanks to your advice, we have been paying an extra 1k off my mortgage per month for the last year! Our goal is a paid off house in the next ten years as opposed to 30years. 👍👍👍👍👍

  • Hi Canna, Another wonderful advice video. Quick question re market research or survey work. Do you know of any great ones that pay for those of us not living near a city. ie online only work? Thanks as always. Susie.

  • Your advice is wonderful Canna, thank you. From a minimalist perspective, I'd love to hear your techniques for how to keep those fiddly bits of paperwork, kids schoolwork/artwork/reports, that have to be kept. Would love to see a video about how you maintain your files & paperwork.

  • I read ordinary people extra ordinary wealth and in there says to always carry a mortgage and as long as possible because of the tax benefits? How do you feel about that?

  • Love this! I am trying to pay off my 15 year mortgage in 8 years so this is very motivating! I can't even imagine how it will feel.

  • I'm a year into my mortgage on a unit. It's so exciting looking at the calculators that show how much interest you'll save, and how much sooner you'll pay off your mortgage, just by putting in an extra $100 or so a week. I even worked out my partner and I could pay it off in six years if we knuckled down. Love all your info and advice! 🙂

  • SUCH an inspirational video and some excellent tips too. I would love to sell on eBay but don't know how to be a savvy seller . Please can you do a video on how to sell on eBay? Ps I love watching all ur videos! x

  • Canna a lovely and CORRECT video. I cannot express enough how paying down your mortgage sooner can save you thousands in the long haul. We find time to do the things that mean the most to us…..

  • Did you attend a university? If so what classes did you take and what was your major? I am very interested in financial coaching or advising and was wondering if you had any advise on how to make it a career.

  • I live in California ( San Francisco Bay Area) I am in this fantastic journey to Payoff my mortgage in no more than 5 years. I know I can do it. I keep thinking in how great it will be once I'm completely off monthly payments. I'm enjoying the journey, I watch your Vids to stay motivated. Thank you!! 😘

  • Excellent, excellent tips! I am on that journey to become financially free. I have two questions about Tip 5: Is this the same as refinance. I know refinance was mentioned in a later tip.I have a fixed IR at 6.25%, and it seems my mortgage company is instilling fear by saying interest rates will rise….if I'm fixed, I should not be affected, right?

    Next question: My mortgage company sources biweekly payments to another company that charges a fee for me to split my payments into two each month. I decided no. I am able to make additional payments towards my principal online through my mortgage company-and I have the option to to put that amount towards my principal. I guess this is not a question. Just wanted to know if I'm on the right track.

    Many, many thanks!

  • If I have more equity than the principal balance, how to you feel about using a home equity line of credit to pay off the mortgage?

  • Hi Canna, thanks for your advice! I'm nowhere near ready to buy a home yet but it's good to be aware of. Just wondering, have you done a video on determining whether it's best to buy a house vs. investment property? Being a Sydney-sider myself, the probability of buying around or within Sydney is becoming lower and lower… so I guess it would be great to gain some advice as to whether investment property is a better option? Thank you for all that you do! x

  • Hey Canna! Much love to you for your always inspiring and informative videos 🙂 Is there a forum in which those of us who sell on eBay can share our accounts so as to spread the love amongst the sugarmumma team? We all might earn and save money that way 🙂

  • Hi Canna, i would be interested in your opinion on Dave Ramsey and his baby steps. Would you make a video on this topic? In which points you agree with him and whether there is somethig you disagree. Thank you!

  • should i pay off my hecs first before buying a new home? i find it hard juggling between paying a house, hecs and sacing up for shares

  • Hey Canna, have been following your videos for quite some time now.
    I've recently taken out a home loan mortgage, but feel the interest rate is so low (~4%) that making additional repayments is wasted financial opportunity where I could be investing that money into something that produces higher returns/CG over the long term, such as an index fund. This seems much more beneficial than paying down this debt. The only flaw in my plan is if interest rates rise above the return I could get with my profile..? do you have any thoughts? thank you!

  • this one is better than the last one I saw of yours, I have been watching the Dave Ramsey stuff. I also found a free Google excel spread sheet, which shows instantly how much time and money you can save, when you add the amount of the extra payment. but the good news is next month is the month I get three paydays.

  • Fantastic video, lots of great advice! We recently downsized to a smaller but actually nicer home and someways. Saved $100,000 in overall debt… Interest rate was almost cut it in half… And where paying the mortgage with automatic withdrawals every two weeks. That one tip a loan you gave to do that save seven years off the mortgage! Automatically becomes a 23 year alone if we do nothing else!

  • Hi Cana I love your videos! I've been watching everything you have done in relation to mortgages and paying off debts.

    My husband and I are now ready to start looking to buy our first home. Could you do a video for first home buyers? Things we need to know or be aware of? I live In Australia

  • Hey i heard if you give payments every 3 months each year of the same amount of your monthly mortgage you can pay off your loan in 11 years but how does the interest work i dont understand and do you have to tell them your overpayment is going to the principal im about to become a first time home buyer and im terrified just to think we have to pay so much money back

  • I got a loan where I paid weekly, also when interest rates went down, I let the repayments come down accordingly, just that I saved the extra money left over and whacked it along with extra money on the principal. Then the repayments got even lower, letting me save even more and keep lowering the principal, kind of like a snowball. Word of caution, only do this if you're very disciplined and can control yourself. If you can't then listen to sugarmamma. 🙂

  • I read somewhere that making fortnightly or weekly payments does not really matter. Reason is that the interest has already been added from the previous month. So therefore no savings on interest.
    Do you have any feedback on this?

    (New mortgage payer here in Australia & wanting to see what you think?)

  • Thank you for your inspirational videos! We are trying to pay off our loan as fast as possible. Now I have seen a video on the same subject, which claims that we can do it in 6-7 years. It is based on using our creditcard. We would very much appreciate your oppinion on the method. Maybee it's something you can use in your videos as well. Thanks again

  • I've been making extra principal only payments and I recently significantly increased contributions to my retirement account. I'm wondering if I should reduce my retirement contributions to the agency matching limit and focus on paying off my mortgage with the extra money that is currently going into retirement. When there is significant reduction in principal owed, I can increase the retirement contributions again. Is this a good strategy? I will have a few sources of income when I retire. It will be enough if I don't have a mortgage to pay. I can always try it for a year and see what the impact is. Has anyone else tried this route?

  • I just started using Robin hood. Anyone who also wants to join use my code and we both get a free stock.

  • I cannot wait to do this, we are first paying off my husbands credit card debt. Yes my husbands, cause he was lousy with money until we got married and I realised he has no boundaries when it came to money and what he was doing. 2 years later and slowly getting there.

  • My mom paid off our 30 year mortgage in 10 years like a bad ass. We lived like we were poor until I was 10 years old but she paid for most of my $60,000 college. I love my mom ♥️

  • Tip No. 11: treat the property as partially rented property on tax return and claim negative gearing benefits through tax refund on arm-length market rent, assuming the home will never be sold. therefore no partial CGT would be levied on sale…

  • Hello from Florida Canna! Until I started watching your videos I believed it impossible to pay off our mortgage or my student loans! But now, my mind has changed, I really feel empowered. I haven’t figured out how to come up with this extra money yet, but I’m determined! Thank you & God Bless!

  • Some of the best advice I received was to budget and cut costs but from the boring things not the fun things . Switch lenders, utility providers, insurance, phone, internet providers and so on. That's where we found the extra money without having to change our lifestyle.

  • Hi Canna, nice video and very useful information. I am bit confused now, just weighing between paying mortgage early Vs investing the extra payments towards buying ETFs and let the compound interest do it's magic over 30 years, leaving my mortgage to default 30 years. Please advise

  • If you can't afford an extra $50 per a week on you mortgage you have borrowed too much. What are you going to do if your interest rate goes up?

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