At what point does it make sense to pay off investment mortgage quickly?

M

murphaph

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My balance is 75k, don't know what the house is worth, possibly 170k or so.

My repayments are app. 500 a month.

So at present we can offset 75% of mortgage interest paid against taxable rental income. Is there a set percentage where it makes more sense to pay the mortage down asap?

Any thoughts?
 
It depends on the rate you are paying.

If the net rate on a deposit after tax is higher than the net rate of mortgage interest you are paying after tax, then you should not pay off your mortgage.

Assuming, and it's something you need to decide on, that the bank holding your deposit doesn't go bust.
 
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