Before I had kids —what feels like a lifetime ago now—I was convinced I’d be a renter forever.
The flexibility to move whenever I wanted, and live in a much nicer location than I could ever afford to buy in made so much sense.
But becoming a mum changed everything. I wanted to give my boys the stability of a home that was truly ours—somewhere we could settle without the looming uncertainty of a landlord’s next move.
So, while we were still renting overseas, we made the leap and bought a modest home back in New Zealand.
That house then became a rental (which we’ve now sold) and now we’ve downsized into a smaller property in a better location—a move that’s given us more financial flexibility and one of the best returns on effort we’ve ever had.
Now, we’re mortgage-free.
And let me tell you, that freedom feels incredible.
Here’s why we hustled to pay off our home—and why it might be the smartest move you’ll ever make, too.
A Paid-Off Home Is a Guaranteed Return
Let’s get one thing clear: the house you live in is not an investment.
It doesn’t generate income, and while mortgage interest isn’t exactly money down the drain, it definitely feels like a frustrating expense with no return.
That’s why I see paying off your own home as a guaranteed, risk-free return.
Every extra dollar we threw at the mortgage was a dollar we weren’t handing to the bank in interest.
In fact, the return on aggressively paying off your mortgage often outpaces what you’d earn on a low-risk investment—without the volatility or fees.
We Bought Cheap — and Paid Fast
We bought our home in 2013 for $195,000.
I feel it’s important to point out that we bought half a duplex, not a house. More like a flat, really.
And even though we were pre-approved to spend $600,000, we spent $195,000 – and put down a $19,500 cash deposit that we had saved.
It was worth around $220,000 when we purchased (I can’t resist a cheeky offer), and thanks to some renovations and a lot of time, it’s likely worth around $420,000–$460,000 now (2025 – so still a “cheap” property by today’s standards).
We made it our goal to be mortgage-free by 40—and we hit that milestone at 38 and 35.
That’s years of our lives now free from the stress of monthly repayments.
Why We Wanted a Paid-Off Home—Even Though We’re Planning a Life of Travel
You might think that paying off a home doesn’t make sense if you dream of globetrotting.
But for us, it was a no-brainer—and here’s why:
Your Payments End (Eventually)
When you own your home outright, the biggest bill disappears. You’re left with just rates, insurance, and maintenance — far cheaper than rent.
Rent, on the other hand, never ends. And it always goes up.
With a mortgage, the interest portion shrinks as you pay down the principal.
That’s why our plan was always to pay it off early and slash the interest cost.
Every extra repayment was money saved—and freedom gained.
You Can Leverage Home Equity into Rental Property
Another big reason we wanted to own was so we could use our home as a financial tool.
With the equity we’ve built up, we can borrow over $150,000 tomorrow to buy more rentals.
We’re not doing that right now—but having the option is powerful.
You Can Put a Nail in the Wall (or Knock the Wall Down)
One of the underrated joys of homeownership?
You can truly make the space your own.
Want to hang a gallery wall? Go for it. Want to paint the kitchen hot pink or rip out the lino?
No landlord approval needed—and no threat of losing your bond.
No Inspections
Let’s be honest—property inspections are the worst.
As a tenant, they always felt invasive.
As a landlord, I get why they happen… but that doesn’t mean I miss them.
Owning your home means one less bit of life admin—and a lot more privacy.
It’s Also Tax Efficient (Especially in NZ)
Another reason we were so keen to pay off our own home is because it’s incredibly tax efficient in New Zealand.
Unlike rental properties, where the interest is tax-deductible, you can’t claim the interest on your personal home loan.
That means you’re paying it with your hard-earned, after-tax income.
So every dollar we paid off early gave us a guaranteed, tax-free return equal to our mortgage interest rate — and for us, that made more sense than chasing uncertain investment returns.
It’s one of the smartest financial moves you can make with no risk and no tax complications.
Explainer: Paying down the mortgage gives a risk-free return equal to the interest rate — and since you’re avoiding the cost rather than earning income, there’s no tax on that “return”.
Your Home Opens Travel Doors
This part surprised me most. Owning a home hasn’t held us back from travelling—it’s actually made it easier.
I once posted in a Facebook group for world schooling families asking if anyone wanted to house swap with our Christchurch home.
Within hours, we had offers from Hawaii, Alabama, and Los Angeles.
That’s the power of homeownership—you can swap, rent it out short-term, or even lease it long-term while you explore the world.
Options, people. It’s all about options.
If Everything Goes to Sh*t, You Still Have a Roof Over Your Head
Life happens. Jobs vanish. Income dries up.
But if you own your home outright —or have paid down a big chunk of it—you’ve got a safety net.
You may be able to pause repayments, switch to interest-only, or just ride it out knowing you won’t lose your home.
And you can’t put a price on that kind of peace of mind.
But Can’t You Make More Money Investing Instead?
This is always the counter argument. And yes, sometimes you can. But not always.
If you’re comparing paying off your mortgage early versus investing in the stock market or property, remember this: the mortgage is a guaranteed return.
We don’t pay down our investment property mortgages early (generally)—we let the rental income do the heavy lifting there.
But our home? That debt wasn’t doing anything productive. So we smashed it out.
What We’re Doing With Our Mortgage Money Now
Paying off your house is a huge milestone, but what comes next?
A lot of people feel a bit lost without that big monthly goal and the feeling that forced savings has been removed.
Here’s what we did:
1. Celebrated (within reason)
We planned an Easter family getaway using what would’ve been our March mortgage payment as we paid our home off in February.
We explained to the kids about how this holiday was a direct result of all our saving and sacrificing. That lesson was priceless.
2. Tackle higher-interest debt
If you’ve got personal loans, credit cards, or student debt, your freed-up mortgage money is your new secret weapon.
High-interest debt first, always.
We didn’t have any consumer debt as we got rid of that some time ago, so we went straight to step 3.
3. Build wealth
We funnelled our old mortgage payment straight into our early retirement fund.
No lifestyle creep here—just consistent investing in a low-fee fund index fund.
So we went from spending $1200-1500 a month on the mortgage to $1200-$1500 a month into investments.
4. Max out retirement accounts
If you’re still earning, using the extra cash to grow your nest egg and make the most of employer or government matches on KiwiSaver and other retirement accounts is a great way to redeploy your mortgage payment.
Final Thoughts: Freedom Over Flex
A paid-off home might not be flashy, but you know what it is? Freedom.
It’s freedom to say yes to opportunities. Freedom to weather a financial storm. Freedom to dream a bit bigger because you’ve removed one of the biggest financial anchors from your life.
We’re all about using money intentionally—getting the most value from every dollar, and building a future that works for you, not just the banks.
And if that future includes a paid-off home? You’re off to a brilliant start.
