Mortgages.
The word alone feels heavy, like a financial hangover that never ends. I’ve got one. You’ve probably got one. Most of us are just trying to survive under one.
But what if I told you it’s still possible to smash your mortgage (like DECIMATE it) and not be in debt until your retirement party? That’s what Shelley Palman and Justin Gauci from enable.me told me on the latest episode of Where’s My Money, and my brain has not stopped doing the maths since.
Here’s what I learned. Brace yourself.
1. Your Debt-to-Income Ratio Is Your Financial Pulse Check
Shelley put it plain and simple: if your mortgage is more than six times your household income, you’re officially in 'yikes' territory.
When you’re starting to get to the one-to-seven, one-to-eight… that’s the point where we are really deeply uncomfortable.
Translation? If your mortgage is $700K and your household income is $100K, you’re in danger, friend. But don’t panic - you’re not alone. You DO need to take it seriously, though
2. You Can’t Out-Interest-Rate a Bad Structure
Most of us are obsessed with chasing the lowest rate like it’s the holy grail. But Justin hit me with this:
A portion of your loan, if it’s strategically set up, can beat whatever interest rate’s on offer by 2 to 2.5%.
That’s not a typo. Turns out, structure beats rate. A revolving credit facility (if you play it right) is the financial equivalent of a lightsaber. You only float what you can repay in 12 months. You stay flexible. You slash years off your mortgage. Magic.
3. Don’t Get Loose Just Because Things Feel Better
Interest rates drop. Pay rises happen. The weather improves. And what do we do? We get cocky.
"They stall and coast,” Justin said.
The amount [this couple] overspent in just three months pushed their mortgage out by four years.
I mean… I’m not saying I’ve done that. But I’m not saying I haven’t.
4. Break It Down. Or It’ll Break You.
A 30-year mortgage feels like forever, because it is. So the enable.me crew recommends breaking it into 3-month chunks.
Let’s break that mortgage down into savings targets that feel achievable,” Shelley said. “We check in, then do it again.
It’s like a Couch to 5K, but for home ownership.
5. Whatever You Do, Don’t Be a Dickhead
This one’s mine - but it stands. There are days I want to cry into my banking app, days where I want to just pay the minimum, when I want to ignore the trajectory and pretend it’ll all work out...
But the truth is: it won’t. Unless I do something about it.
So I’m choosing to get smarter. I’m choosing structure over guesswork. And I’m choosing not to be the guy who gets to 55 and realises he could’ve been mortgage-free if he’d just stuck to the plan.
If you’re in the same boat (and I know you are), this episode is worth a listen. Hell, it might even shave a few years off your sentence.
Listen to the full episode: Epic Mortgage Plans: Smash Debt Like a Pro on Where’s My Money? Available now on rova, Spotify, or wherever you get your financial therapy
