You’re probably overpaying your mortgage (most people are)
Here’s a number most people don’t like hearing…
Over the life of a typical home loan…
you’ll likely pay back more in interest than what you borrowed.
Yep.
On an average loan of $736,000 at 5.5% over 30 years…
that’s about $769,000 in interest.
That’s not a typo.
That’s the cost of “just letting it run.”
And right now, with another rate rise (and possibly more coming)…
that number can creep even higher.
I was chatting with a client recently.
Good income.
Solid job.
Never missed a repayment.
From the outside, everything looked fine.
But when we actually looked at their loan…
They hadn’t reviewed their rate in over 2 years.
They assumed the bank would “look after them.”
They weren’t doing anything wrong.
They just hadn’t checked.
That one small thing?
Was quietly costing them thousands every year.
And this is happening everywhere.
The stats tell the story:
The average new mortgage is around $736,000…
and over 50% of income is going toward servicing it.
That’s a big chunk of your life going to the bank.
So the real question becomes…
How do you stop overpaying?
Not by guessing.
Not by hoping rates fall.
But by taking a few simple actions.
Here’s the framework we use.
First — ask the question.
Most people don’t realise this…
Banks won’t just give you a better rate.
You have to ask.
And not just once.
Properly.
Here’s a simple script you can use:
You:
"Hi, I’ve been with you for X years, but I’ve noticed other lenders offering better rates. My current rate is ___%, and I’ve seen ___% elsewhere. I’d like you to match or beat it before I consider switching."
(They’ll come back with something…)
You:
"Thanks, but that’s not enough for me to stay. I’d need something closer to ___%. Can you check again?"
Then… wait.
The first offer is rarely their best.
Think of it like buying a car.
You wouldn’t accept the first price… so don’t do it with your biggest expense.
Second — know your numbers.
You don’t need a fancy system.
You just need to know:
What’s sitting in your accounts
What’s earning nothing
What could be offsetting your loan
Money sitting idle is like leaving your tap running.
It’s slowly costing you.
If you want a deeper look at this, check out Chapter 5 in our free Destroy Your Debt Playbook:
https://7wealth.com.au/destroyyourdebt
Third — build a system that works without you.
The goal isn’t to rely on willpower.
It’s to set things up once… and let it run.
Automated accounts.
Smart loan structures.
Clear flows of money.
Think of it like setting up a row of dominoes.
Once they’re lined up properly… they do the work for you.
We break this down in Chapter 6 of the playbook as well.
Fourth — use debt as a tool (not a trap).
Most people spend 30 years trying to escape their mortgage.
But the smart move?
Learning how to use it.
Strategies like debt recycling or investing alongside your loan can actually help you:
Pay down your mortgage faster
Build wealth at the same time
It’s not about taking more risk.
It’s about being intentional.
There’s a simple line I always come back to:
“The bank’s plan is for you to stay in debt for 30 years. Your plan shouldn’t be the same.”
Even a small rate drop…
or a better structure…
can save you tens (or hundreds) of thousands over time.
So here’s something simple you can do today.
If you want to know whether you’re overpaying…
Contact us or SMS 0483 937 777 with your current rate.
We’ll send you back what others are offering.
No guesswork.
No pressure.
Just clarity.
Because when over half your income is going toward your mortgage…
It’s worth making sure it’s working for you, not just the bank.
And if someone popped into your mind while reading this…
a mate, sibling or work colleague who might be overpaying too…
Hit forward and send this their way.
It could save them a lot more than just a few dollars.
Talk soon,
7Wealth Pty Ltd ABN 44609210246 is a Corporate Authorised Representatives and is authorised throughCobalt AdvisersPty Ltd ABN 64 628 654 099 who is an Australian Financial Services Licensee 512550. 7Wealth Pty Ltd is a Credit Representative ofAustralian Finance GroupLtd ABN 11 066 385 822 (AFG) Australian Credit Licence 389087.
This blog contains information that is general in nature. It does not constitute financial or taxation advice. The information does not take into account your objectives, needs and circumstances. We recommend that you obtain investment and taxation advice specific to your investment objectives, financial situation and particular needs before making any investment decision or acting on any of the information contained in this document. Subject to law, Cobalt Advisers Pty Ltd nor their directors, employees or authorised representatives, do not give any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this document.
