This might be duh for some people, but if you’re like me and considering a mortgage; at today’s rates in the US at around 5-6%, over 30yr mortgage you will pay about same in interest as you will for your house price.
Your $500k house will cost you around $1M total over thirty years.
I was surprised.
Unless you have offset accounts, in which case it’s better to hold surplus liquid that offsets the amount owing before interest calculation
That works, but I don’t know if “better” is the right word. If you have the same amount offset or paid off, it’s the same outcome. The only difference is if you offset then you can spend it - for better or for worse.
You could also bump your payments up and use an offset account for any extra.
Offset is generally considered better because if you have an emergency or financial opportunity you still have access to cash. If you put extra into repayments you’re forced to redraw or refinance if you suddenly need funds.