Is overpaying a mortgage a good investment?

Each euro overpaid earns your mortgage rate, guaranteed and tax-free. An investment has to beat that after tax. A fund's gains pay 35% exit tax from 2027 (when sold and every 8 years). Savings interest pays 33% tax.

Can I overpay without a penalty?

On a variable rate, usually yes. On a fixed rate, lenders may charge a breakage fee above a yearly allowance. Check your loan offer or ask your lender before overpaying.

Investing

Overpay the mortgage or invest?

Compare paying extra off your mortgage with investing the same money, after Irish tax on the investment, over the rest of your term.

Self-assessment tool. The figures come from your own answers. It isn't advice, and you're responsible for what you file or claim. heypenny.ie is a trading name of Kinch Press. Read the disclaimer.

Common questions

Is overpaying a mortgage a good investment?: Each euro overpaid earns your mortgage rate, guaranteed and tax-free. An investment has to beat that after tax. A fund's gains pay 35% exit tax from 2027 (when sold and every 8 years). Savings interest pays 33% tax.
Can I overpay without a penalty?: On a variable rate, usually yes. On a fixed rate, lenders may charge a breakage fee above a yearly allowance. Check your loan offer or ask your lender before overpaying.

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