I am putting all my money into the variable loan account? Is that the best investment (i.e. trying to pay off your home loan faster)? I am a couple of years into the home loan and I have cut of 3 years off the 30 year loan.
Not sure if this is the best approach in the long run though? I am looking for suggestion from the experts in the group about how can I utilize my saving better ?
Provided you have a redraw facility then paying off the mortgage is a very effective investment - you are getting a tax free return on your money.
honeycoat much
No best answer but you would want below,
Lowest rate
No fee
Unlimited repayments
Free offset or unlimited redraw (if you don't plan to turn it into IP later)
Set aside 5% income for high risk investment, as you won't want to be just owning a house 20 years later when you're 40s
If you want low risk then a home loan is the best place for your money - no savings accounts will have a better interest rate. You can do better if you are willing to risk your savings.
Debt recycle your mortgage into etfs
Your question does not have the alternative proposition to allow it to be answered.
Is your approach better than stuffing the money in a mattress? Yes.
Is your approach better than a guaranteed return of 20% p.a.? No.
Is your approach better than plonking it all on the top weight at Randwick this weekend? Depends.
Depend on so many variables, that is why so many lenders and products out there. And the prediction of interest rate rise or fall.