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The overall thought of being in debt for 30 years can be difficult to get your head around especially when you may have only just lived that long. Mortgages are a hefty financial commitment for most people. Especially for first-time buyers, they can be intimidating, and the bad news is they’re getting bigger, longer and more complex. That’s why it is important to understand your mortgage and put your repayments into the perspective of your overall finances.


For a Typical couple drawing down a mortgage in Dublin today, It’s 28% of their take-home pay.

That means there’s 72% of take-home pay being spent elsewhere. We all seem to have this idea in our heads that once our mortgage is paid off we are going to be rich, unfortunately, this isn’t the case. We say this because people conflate retirement with not having a mortgage. The fact of the matter is if by the time you retire your mortgage is on average 7% of your take-home pay, so even if you do have a mortgage going into your retirement you’re still finding a way to spend 93% of your take-home pay elsewhere. Try not to think of your mortgage as a huge commitment that, when you’re finally free of it, you’re going to be loaded because typically this isn’t the case.


Don’t think that when you take on a mortgage it will be such a huge proportion of your take-home pay that you can’t afford to do other things in your personal finances, like funding a pension, saving for kids education, or any other financial goal because you can. Mortgage repayments aren’t 50% of our take-home pay, on average last year in Dublin it was 28%. This leaves us with far more income than you may first think.


Now you are probably wondering “if my money isn’t mostly being spent on my mortgage where is it going?” A huge money-saving tip we tell our clients is to put your mortgage into perceptive. Don’t use them as an excuse not to make plans today, and don’t use the fact that they won’t be there in the future, as a way to justify why you shouldn’t make plans today. Understand how you are spending your money and exactly what percentage of your take-home pay you are repaying each month. This will help you to understand what extra finances you may have when your mortgage is paid off. One less expense could free up your cash for travel, retirement plans, or other long-term goals.


At Rockwell, we provide independent mortgage advice and guidance in an increasingly complex mortgage marketplace. We have forged relationships with many mortgage lenders and banks, and only recommend the mortgage lender that best suits our clients’ needs.  Our expert mortgage advisors work hard with clients in preparing and submitting mortgage applications with the distinct aim of getting mortgage approval. For more mortgage advice get in touch with our team today!

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