How can we clear our $500,000 mortgage in five years time?

March 1, 2026 — 5:01am

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We’re 50 and want our $502,000 mortgage cleared by 55. Our wages and investment income put us both in the top tax bracket. We already make extra repayments, but to achieve our goal we are considering using a $50,000 work bonus, plus selling $100,000 of shares (CGT likely under $8000) to reduce the 6.3 per cent mortgage. Is selling growth assets to secure a “guaranteed” 6.3 per cent return by becoming debt-free a smart move – or are we being too conservative?

A great goal to set yourself. If you have the risk appetite, the optimal scenario here would probably be to get the mortgage paid down, then re-borrow against your home and buy growth assets again.

That way the new debt will be tax-deductible, significantly reducing the cost of money for you. Capital gains tax is an important consideration, but the figures........

© The Sydney Morning Herald