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Pay off your home faster by buying an investment property

An extra mortgage sounds like the opposite of paying your home off. Used properly, rental income, negative gearing refunds, and debt recycling can wipe years off your PPOR loan. Compare the two paths side by side.

Your Home (PPOR)

$
%
yrs
$
Applied to both scenarios so the comparison stays fair.

Investment Property Strategy

$
%
IP loan assumed interest-only for simplicity.
%
Weekly rent: $625
% p.a.
% of rent
Covers management, rates, insurance, maintenance, vacancy.

Side By Side

Scenario A · PPOR only
25.0 yrs
to pay off PPOR
$0
total interest paid
$0
net position at 30 yrs
Scenario B · PPOR + investment property
0 yrs
to pay off PPOR
$0
total PPOR interest
$0
net wealth at 30 yrs
The difference
Adjust the numbers to see how the investment strategy compares.
PPOR debt over time
PPOR only PPOR + IP
How the IP strategy accelerates payoff
  • Rental income covers most of the IP holding cost.
  • When the IP runs at a loss, negative gearing returns cash at your marginal tax rate.
  • Surplus cash is redirected straight onto the PPOR principal each year.
  • Once the PPOR is clear, the freed-up repayment pivots to smash the IP debt.
  • Meanwhile the IP compounds in value in the background.

This is the exact strategy we model for clients. If you want a second opinion on whether it stacks up for your income and goals, we can help.

Book a free strategy call
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Indicative only. Assumes constant interest rates, rental income matching today's figure, and capital growth compounded annually. IP loan is modelled as interest-only. PPOR amortisation is calculated monthly, with investment-driven surplus applied annually. Actual outcomes depend on lender policy, tax circumstances, vacancy, depreciation, and market conditions. Speak to a qualified mortgage broker and accountant before acting.