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Living mortgage-free
Living with No Mortgage:
A Guide to Living Mortgage-Free

For most of us, a mortgage represents the largest and longest financial commitment of our lives. Many people dream of living mortgage-free.

There are numerous advantages of paying off a mortgage quickly:

  • You will save tens of thousands of dollars in interest payments living with no mortgage..

  • You will enjoy security and the peace of mind that comes from owning your own home outright--mortgage-free!.

  • You will enjoy the extra money from having a lower monthly expenditure.

  • You can plan to retire earlier by saving up the money which would have gone towards the mortgage.

  • You will not be exposed to fluctuating interest rates.

Here are some key suggestions to help you pay your mortgage off early so that you can be mortgage-free:

  • A good start is to save up for as large a deposit as you can.

  • Prepare and plan a realistic budget taking into account your total income and your total outgoings.

  • Once you have worked out a realistic budget, choose a mortgage with a good interest rate with the help of a reliable mortgage adviser.

  • Choose a mortgage you can comfortably afford, leaving spare cash for other expenditures.

  • Watch out for hidden costs, arrangement fees, redemption penalties, monthly fees, and any other expenses.

  • Ensure you have a daily or at least a monthly interest mortgage so that your interest is recalculated the day an extra payment hits your account. Avoid annual interest mortgages at all costs.

  • If possible, make overpayments if this does not incur heavy penalties. By doing this, you will reduce your interest payments as well as the mortgage term and be well on your way to being mortgage-free.

  • If you earn more or receive a pay raise, put those pay increases and bonuses towards reducing the mortgage.

  • If interest rates fall, do not reduce your monthly payments.

  • If you have an uncompetitive mortgage, consider remortgaging by switching to another lender or choosing another flexible mortgage product.

  • Make sacrifices by cutting back on spending and using any skills you have to earn extra income.


Before you can enjoy the benefits of living mortgage-free or living with no mortgage, make sure you clear any other significant debt and have money in reserve for emergencies.If done correctly, using your savings and spare cash to overpay a mortgage is much more profitable than saving your money in a standard savings account. Debts usually cost more than savings earn, so cancel them out and you will definitely be better off.

The only exceptions are as follows:

  • If there are penalties for clearing the debt, as is common with loans

  • If the debt is temporarily cheap and you could make more saving the money, for example, in a high interest savings account or with 0% credit cards

Before you clear your mortgage and start living mortgage-free, it is crucial you clear other expensive or priority debts first. Over the long run, mortgages are cheap compared with credit cards or loans, so clear those before putting more cash towards your mortgage.

Paying off your mortgage quickly requires a great deal of discipline and effort. However, for most people, especially families, the ultimate goal of living mortgage-free or living with no mortgage is clearly worth it.

Check out the best mortgage providers

 
 
 
 
 
 
 
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