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MORTGAGE OR SUPER

Which should come first, mortgage or super?

Paying off your home loan signals an important landmark in your financial life. However, it is always important to consider alternative investment strategies. Sometimes the best strategy may not be the most obvious.

Super contributions caps

When considering any super strategy, it's important to assess how much you are contributing to super in any one year. The government has set annual limits – known as contributions caps. Contributions over these caps are taxed at a hefty rate.

What you need to know

Most people still believe that they are better off putting surplus money into their mortgage before investing elsewhere. However depending on your circumstances it may be more beneficial to salary sacrifice rather than make additional payments to your mortgage.

Salary sacrifice allows you to make contributions to your super directly from your pre-tax pay. You do not pay income tax on salary sacrifice contributions which can represent a significant tax saving particularly if you are on the highest marginal tax rate. And when you pay less tax, you have more money to invest which gives you the potential to increase your returns.

Getting started

Both the mortgage interest rate and earning rate within super are important variables to consider in any comparison between reducing debt and making before tax super contributions. It is important to be aware of how the outcome would change if the mortgage interest rate and/or the earning rate within super changed.

Count on us

A Count adviser can help you:

  • Work out the most effective strategy for you
  • Boost your super using smart super strategies

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Contact CBD Wealth Solutions

11A / 29 Mt Cotton Road Capalaba QLD 4157
PO Box 1202 Capalaba QLD 4157
Telephone: (07) 3390 3663
Fax: (07) 3390 3660
Redland, Brisbane


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CBD Wealth Solutions ABN 75 083 804 317 is an Authorised Representative of Count Financial Limited, ABN 19 001 974 625. AFS Licence Number 227232 which is 85% owned by CountPlus Limited ABN 111 26 990 832 (CountPlus) of Level 17, 1 Margaret Street, Sydney 2000 NSW and 15% owned by Count Member Firm Pty Ltd ACN 633 983 490 of Level 17, 1 Margaret Street, Sydney 2000 NSW. CountPlus is listed on the Australian Stock Exchange. Count Member Firm Pty Ltd is owned by Count Member Firm DT Pty Ltd ACN 633 956 073 which holds the assets under a discretionary trust for certain beneficiaries including potentially some corporate authorised representatives of Count Financial Ltd. The information on this web page is not advice and is intended to provide general information only. It does not take into account your individual needs, objectives or personal circumstances.