The Australian’s Money Cafe: Pay the mortgage or top up super? Rate hikes change the answer

When interest rates were at rock bottom, paying off the mortgage lost its place as the first priority for investors. But now times have changed.

With interest rates on the rise, paying off the mortgage has once again become a priority instead of pumping extra funds into superannuation. Picture: CMCA

For generations of investors, paying off the mortgage was an unchallenged principle of sound investing. Then came an unprecedented era of low rates and it made sense to pump up your superannuation instead. This week the official rate moved higher again to cross the 3 per cent threshold and the numbers have changed, paying off the mortgage is back in fashion.

In this week’s episode of The Australian’s Money Cafe podcast:

• The new realities of higher rates and home mortgages

• Does ethical investing still offer an edge over conventional funds?

• Unexpected tangles in the First Home Super Savers Scheme

• Should we worry about an inverted yield curve?

Questions always welcome at moneycafe@the australian.com.au

Wealth editor James Kirby’s guest on this week’s episode of The Australian’s Money Cafe podcast is James Gerrard of www.financialadviser.com.au