Aussies 'should aim to pay off home loans quickly'

Thursday 12 May 2011

Article by Mozo

Australians should aim to pay off their home loans quickly so they own their dwellings outright, according to one expert.

Pay of home loans early, advises expert

In his ipac blog, the financial planning firm's founding director Paul Clitheroe categorised home loans as "happily necessary" debt, because it is used to purchase an asset that is expected to steadily increase in value.

Despite this, the expert warned that mortgages can prove draining to financial resources, adding that the best way to combat this is to pay them off as soon as possible.

"You should plan to own your home debt-free as soon as possible and the best way to do this is by making extra repayments," he asserted.

Last month, Chris Acret, managing director of Smartline, told the Sydney Morning Herald that prospective home loans customers should try to have all their financial information at their fingertips before applying for a mortgage.

He said proper preparation could help approvals to go through "sooner rather than later".

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