Is best spent on your home loan
It’s tax time again and if you’re anything like me you’ll spend the next few weeks rummaging through all the piles of receipts you’ve stashed in that “safe place” for later. Getting everything together can be a pain but we do it each year in the hope that we’ll receive a small windfall in return for our efforts.
Recent data from ASIC shows that on average Australians will receive a tax refund of $2,112. As tempting as it may be to spend this money on a shopping spree, holiday or the latest phone, not many will consider how beneficial it is to put it onto their home loan.
Some will put it towards unpaid bills or their credit card, some will save it, but only a very small 9% of people will put it toward their home loan.
Paying an additional $2,000 off your mortgage each year, or $4,000 if you’re a couple, can literally knock thousands of dollars off your home loan and take years off your loan term. It may not sound like a very interesting option right now but if you do adopt this habit, you’ll be the one who gets to enjoy the spoils when your loan is paid off faster than those who don’t!