Traditional knowledge utilized to determine Australians were better paying down their mortgage loans as soon as financial obligation free switching their focus on gathering their super. However with rates of interest at record lows and lots of super funds possibly providing a greater price of return, what’s the proper strategy within the market? AMP’s Technical Strategy Manager John Perri investigates.
It’s the most questions that are common advisers get. Are customers best off putting more money into superannuation or the home loan? Which strategy will leave them best off in the long run? Within the super versus mortgage debate, no two different people are certain to get exactly the same solution – but there are a few guidelines you are able to follow to sort out what’s right for you personally.
The one thing to take into account could be the rate of interest in your mortgage loan compared to the price of return on your own super investment.