Mortgage-free or a month-long holiday? Which would you choose?

Sydneysiders Sally and James* recently found themselves in a pretty exciting situation. Through a significant amount of hard work and effort, they received a work bonus which was enough to pay off the mortgage they’d been slowly paying down. A decision had to be made. Should they give in to their desire to travel – or free themselves from debt and join the 31% of Australians currently living mortgage-free? “With three teenagers at school, all the life expenses that we incur, and a wanderlust for travelling whenever budgets would stretch that far, it was tempting for a brief moment to do something ‘fun’ and family-oriented with the bonus,” Sally admits. “We were certainly tempted to splurge but we knew the right thing to do was pay down the mortgage.” Sensibility prevailed. “It’s a no-brainer – pay down the debt, then build on your retirement nest egg by saving your mortgage repayments,” says Sally. “ You don’t want to look back in 10 years wondering ‘what if?’” As far as financial problems go, this is one we all aspire to: when a large – and unexpected – cash bonus comes our way. How much can I save by refinancing?Use UNO's calculator to estimate your savings. Calculate Savings

Long term gain or short-term joy?

Whether it be through an inheritance, surprising win or pure hard work, imagine suddenly being faced with the most delicious of financial decisions: do we spend this windfall wisely or cast aside all sensibilities and splurge like there’s no tomorrow? No matter how tempting it might be to book an all expenses paid, first class holiday around the world or drive out of a dealership with the car of your dreams, there’s simply no escaping the fact being sensible will deliver long term gain instead of short term joy. Even if you can pay just a little extra each month, it can shave years off your mortgage. For example, just $100 extra a month – or roughly $3 a day – will save you more than $40,000 and cut two years off your loan term.

Read: The three must-have mortgage features to get you out of debt fast

Find a dealAnd while being freed from monthly mortgage repayments doesn’t sound as glamorous as spending a year visiting every continent on the planet, there are still some very real, tangible benefits to be enjoyed. “A mortgage-free house was almost as appealing as a month travelling throughout Europe for our family,” Sally admits, adding it came with its own feeling of liberation. “Our debt-free house has also become our retirement nest egg, and that has given us a great sense of relief that we have partially prepared ourselves and our boys for when we retire. “We also feel fortunate we no longer have to worry about how to manage mortgage repayments if we no longer have a regular income coming in. You never know what’s coming at you around the corner.” The couple also liked the idea of having a clean ‘savings slate’. “All our savings now don’t need to go into our debt or paying interest on our mortgage.”

Never fear – there’s still room for fun!

Without fortnightly mortgage repayments to worry about, Sally and James feel more able and willing to treat their family. “We’d be lying if I said we didn’t treat ourselves to a nice bottle of French champagne to celebrate,” Sally says, but adds: “A fancy car or dream holiday won’t support you and your family in the future, but a debt-free property will. Do the right thing – but don’t forget to save a little for a treat to reward yourselves for doing this.” Get started*Not their real names. If you came into an unexpected wad of cash, would you make the same choice as Sally and James? Leave your comments below.Book a call in with UNO

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TESTIMONIALS

What our customers are saying

Linda
November 3, 2023
If you’re looking for a trustworthy, thorough, reliable & knowledgeable Mortgage Broker then you must call Anita Callaghan! I can’t even imagine how stressful this process would’ve been without her. Anita went above and beyond to make sure she answered every question, responded to every text (even on weekends/after hours), and followed up on every detail to ensure we had all the info we needed. Anita is a true people person who is warm, empathetic, kind and supportive. You can tell she loves helping people and loves what she does, which is probably why she’s so good at it! Can’t thank you enough Anita, or recommend you more highly! You’re the best!
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Gabe Windsor
October 26, 2023
What a fantastic experience using UNO Home Loans. Mike Parsons and the team were exceptional. Such an easy, hassle free experience, cannot recommend them highly enough. Mike Parsons was in touch every step of the way, and with him doing all the leg work, the transition to a refinanced home loan was a very easy one. Thank you!
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Laurisa Sticotti
July 1, 2023
Scott Wilkinson has been fantastic when dealing with my broking needs. He has held my hand through every step of the way and has made purchasing my first home a much more comfortable experience than I anticipated.
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Thusi Gamage
July 1, 2023
Awesome team, Very reliable and friendly. Scott Wilkinson is very experienced and knowledgeable.He guided us throughout the process and was available to help.
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Omar Zazou
June 1, 2023
I have worked with Scott Wilkinson to get my home loan and he has been a massive help to navigate my first home purchase. He has taken care of all the financial details and I didn't need to worry about anything. Highly recommend him for his professionalism, patience and support!
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Kelly O'Connor
June 1, 2023
You won’t find any broker better than Anita at UNO. We’ve told all our friends and family about her and will be using her for all our mortgages in the future! A stress free process from the start. She listened to our needs and was always available.
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Ashley Morson
We are truly grateful for uno home loans and our broker Karis Churchill. This is our second time purchasing a home with the help from Uno and both times have been a very positive experience. Our recent purchase had many obstacles due to different factors however it was our dream home and we were up for the challenge. Our broker Karis was a true support and went above and beyond. She communicated so well with our solicitor and the real estate agents. She kept us updated through every step and kept us motivated when things seemed impossible. Uno is very fortunate to have Karis as a broker and we would highly recommend her to anyone. Our family are so happy we are now in our new forever home. Thank you so much Karis and to the uno team!!!
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Ebubekir Demir
Thank you Eren for your quick and efficient turn around time to getting an approval for a loan. Will be recommending you to anyone that needs a quick and reliable loan.
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