Free investor tool
Pay off your mortgage faster
Compare two ways to clear your home loan: putting every spare dollar onto it, or buying an investment property now and using the sale proceeds to pay it down later.
Updated · Free, no sign-up
How it works
Using an investment property to clear the mortgage
Paying extra off your home loan gives a guaranteed return equal to its interest rate, tax free. An investment property can grow by more than that, and selling it after several years can clear a large part of the home loan in one go, but it carries borrowing costs, market risk and capital gains tax.
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 became law on 26 June 2026. From 1 July 2027 it replaces the 50% capital gains discount with inflation indexing plus a 30% minimum tax on real gains, and limits negative gearing on established residential property bought after 7:30pm AEST on 12 May 2026. For an established property bought now, losses are only deductible until 30 June 2027, then carried forward to offset the eventual gain. New builds keep full negative gearing. The result depends heavily on the growth rate you choose.
The numbers are one part of the decision
We look at the figures alongside growth drivers, vacancy, supply and how a property fits your borrowing and portfolio plans, then choose the market that suits your strategy, wherever it is in Australia. See how we buy investment property.
FAQ
Common questions
Is it better to pay off the mortgage or invest?
It depends on the after-tax return you expect from the investment compared with your home loan rate, how long you can hold, and how much risk you can carry. The calculator shows the trade-off under your assumptions.
Why does the property type matter?
From 1 July 2027, losses on established residential property bought after 12 May 2026 can no longer be deducted from your salary. New builds that add to supply keep full negative gearing.
Is this financial advice?
No. It is a general estimate to help you compare options. It does not consider your personal circumstances, and results depend on the figures you enter. Check them with your accountant, mortgage broker or financial adviser before you act.
More calculators
All resourcesStamp duty calculator
Transfer duty on an investment property in every state and territory, side by side, at 2026-27 rates.
Property purchase costs calculator
The total cash you need to buy: deposit, stamp duty, legal fees, inspections, loan and government fees.
LMI calculator
Estimate lenders mortgage insurance when you borrow more than 80% of a property's value, and the deposit that avoids it.
Rental yield calculator
Gross and net rental yield, the full cost breakdown, and weekly cash flow after interest.
Investment property calculator
Rental income, every holding cost and loan repayments, for the weekly and yearly cash flow of an investment property.
Negative gearing calculator
The tax effect of a loss-making investment property, and how the 1 July 2027 rules apply to when you bought.
Want us to run the numbers with you?
Book a free discovery call. We work only with investors and buy across Australia.
Book a free discovery call