The age at which Australians pay off their mortgage has important implications for retirement preparedness and financial security. Entering retirement with a mortgage still outstanding significantly increases the income required to maintain a comfortable standard of living.
As property prices have risen and loan sizes have increased, the average time taken to pay off a mortgage has extended for many Australians. Many refinance, redraw, or top up their mortgages along the way, extending the effective loan term.
Extra repayments have a significant impact on mortgage payoff timelines. Making additional repayments even of modest amounts each month can reduce a 30-year mortgage by several years and save tens of thousands of dollars in interest.
Data sourced from APRA Quarterly ADI Statistics and Reserve Bank of Australia research publications. Updated quarterly.