The Magic Number to Invest or Pay Down Your Mortgage

Podcast: Mont Wealth - "Pizz-Spectives" - Investing & Wealth Creation Strategies · Mont Wealth Advisors

Opublikowano: 2026-10-15

Rob Pizzichetta (Mont Wealth) explains why, with Australian mortgage rates around 6–6.5% and households devoting about 37% of income to mortgages, paying down a home loan—especially via an offset—often beats investing. Using a $500k loan at 6.25%, he shows mortgage interest is paid from after-tax, non-deductible dollars, making the effective hurdle high. Assuming investments are taxed at a flat 30%, he models $100k over 10 years at 6%, 8%, and 10% returns and finds only the 10% scenario outperforms the offset, and only modestly, while adding equity volatility risk. He provides break-even and “risk buffer” mortgage-rate thresholds, plus factors that can change the outcome (franking credits, super, deb...