I'm 24 and recently purchased a property. I'm wondering whether or not I should keep my investment account open or focus solely on bringing down my mortgage.

I have been investing with Raiz (I think in other places it's called Acorns) for just over 2 years now. I currently have around $7k in the app (5.7k invested, 1.3k returns). At the moment I invest $50 every week.

Last year in March I purchased my first home. I took out a mortgage of 425k for the house at 2.81% interest over 30 years. My minimum repayments are $440 a week. I am currently renting it out for roughly ~1.7k a month ($430 a week less agent costs, etc).

My job currently pays $4.9k a month after tax, 60% of which immediately goes to the home loan (in an offset account). On top of that, any time I have leftover cash from not spending my wages, it goes into the home loan.

I have no other loans apart from a HECS debt with the government (which has only $7k remaining in it, and should be paid off by EOFY).

I don't know whether or not I should move all of my raiz money into my home loan and smash that out as fast as possible, or if the potential returns from the raiz account would offset the interest payments from the mortgage.

Any insight on what to do (or calculations/research to make a conclusion) would be greatly appreciated. Thanks :)

  • 3
    I was sure there was a pretty authoritative question/answer pair on this site that specifically explains the math behind what you need to consider (even with actual numbers plugged in, there is still a lot of squishy stuff; priorities, risk tolerance - the "personal" part of personal finance). Not sure it's a complete answer to your question, but this answer should at least be a good starting point.
    – yoozer8
    Commented Feb 5, 2021 at 3:52
  • You should be able to earn a lot more than 2.81% in the market over the long term. I'd enjoy having such a low rate and use my savings to put towards an emergency fund/investments. Commented Feb 5, 2021 at 15:11
  • @yoozer8 - Thanks, that's a lot of good information I hadn't found yet
    – impo
    Commented Feb 7, 2021 at 10:06
  • @user1723699 - Thanks, that's something I'll consider as well :)
    – impo
    Commented Feb 7, 2021 at 10:06


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