How to pay off your mortgage in Australia in two years

While home loans typically take 30 years to pay off, one optimistic married couple plans to pay off their mortgage in just five years.

Clara Riddle, 28, and her husband Jake, 32, bought their five-acre property in the Hunter Valley, three hours north of Sydney, for $880,000 in March 2020.

In just two years, independent structural landscaping business owners managed to pay off $200,000 of their $615,000 mortgage by increasing their weekly repayments through “side hustles.”

Clara told Daily Mail Australia they bought the house at the ‘perfect time’ as it was before the pandemic and few buyers were looking in the areas.

When they bought the house, they paid over $200,000 upfront for a previous profitable home renovation, which brought the mortgage down to $615,000.

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Clara Riddle, 28 (right) and husband Jake, 32 (left) bought their five-acre property in New South Wales’ Hunter Valley, three hours north of Sydney, in March 2020 and plan to pay off the mortgage in just five years

In just two years, the couple managed to pay off $200,000 of their $615,000 mortgage by increasing their weekly repayments through

In just two years, the couple managed to pay off $200,000 of their $615,000 mortgage by increasing their weekly repayments through ‘side hustles’.

How to pay off your mortgage faster

1. Take a secondary stampede

2. Pay weekly instead of fortnightly

3. Ask your broker or bank for a lower interest rate

4. Budget and allocate additional funds for the mortgage

The property includes a dam, two self-contained cabins, three bedrooms, a “media room” and a dirt bike trail.

The young couple struck a good deal because the house was initially priced at $1.2 million, but after being on the market for 10 months, the price has dropped significantly.

Clara calculated that in 2021, they earned a total of $20,749 from hustling alone, which included selling unused items around the house, completing online surveys, flipping furniture and l use of rewards programs.

Before Covid, the couple used to rent out the two cabins on their property, but have stopped that hustle for now.

Each week, the couple pays $910 as a minimum repayment with an interest rate of 3.4%, but usually pays an extra $500 because of the hustle and bustle.

What are the secondary activities they have undertaken to increase their annual income

Sell ​​unused items

Recycled furniture for sale

Complete surveys

Rent a guest room

Return and Win Recycling Cans Program

Social media management

Dividends

When asked how others could pay off their mortgages faster, Clara recommended paying weekly installments instead of fortnightly.

“If you pay weekly, you spend a little more each year and you can pay off the loan faster,” she said.

Clara has also found it pays to upcycle old furniture with a white wash, as the style is on trend and sells for “hundreds” of dollars online.

Before buying the first house, the couple had difficulties with the bank, which refused them approval for a mortgage because they are self-employed.

“We developed a good relationship with a mortgage broker who got us a great interest rate,” Clara said.

After fixing small aspects of the house, the property is now valued at between $1.5m and $1.7m – and the couple hope to raise that to as much as $2m by upgrading the facade.

Clara calculated that in 2021, they earned a total of $20,749 from hustling alone, which included selling unused items around the house, completing online surveys, flipping furniture and l use of rewards programs.

Clara calculated that in 2021, they earned a total of $20,749 from hustling alone, which included selling unused items around the house, completing online surveys, flipping furniture and l use of rewards programs.

More than anything, Clara and Jake want to make sure they

More than anything, Clara and Jake want to make sure they “create a safe and secure environment” for their twin daughters Rosie and Arlo, both aged two.

The couple bought an investment property last year with the intention of turning a granny flat in the back into a rental so they can pay off the mortgage faster.

“If all goes as planned, we hope to purchase commercial property and build rental units as well,” Clara said.

Together, Clara and Jake earn a combined income of $200,000 and hope to continue contributing $100,000 to the home loan each year.

Clara added how she overcame adversity growing up when her mother gave birth aged just 16 and was a single mother.

More than anything, she and Jake want to make sure they ‘create a safe and secure environment’ for their twin daughters Rosie and Arlo, both aged two.

You can keep up to date with Clara and Jake’s story by following The Finance Witch Instagram page.

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