Should You Prepay Your Home Loan or Invest?

The math says invest. But math doesn't account for peace of mind.

The Math Argument

Home loan interest: 8.5% Equity long-term returns: 12%+

Mathematically, investing beats prepayment.

But this assumes you stay invested through crashes, don't panic sell, and actually invest the surplus.

When Prepayment Makes Sense

• Interest rate above 9%
• Less than 10 years remaining
• Already maxed tax-advantaged investments
• Emotional need to be debt-free
• Unstable job situation

When Investing Makes Sense

• Interest rate below 8%
• 15+ years remaining
• Tax benefits still valuable
• Disciplined investor
• Stable income

There's no universally right answer. Choose what lets you sleep at night.