Why SMART goals? 

SMART goals are designed to make big dreams more manageable by breaking them into clear, actionable steps.  

Without clear goals, it’s easy to lose focus or feel stuck in the day-to-day grind of regular repayments. SMART goals, on the other hand, can help you maintain momentum and stay motivated. 

S is for Specific: What would you like to achieve? 

A broad statement like “I want to pay off my mortgage faster” can feel daunting and unspecific. Instead, drill down into exactly what you’d like to achieve. Clear goals lead to clear actions.  

Example: “I’d like to increase my monthly repayments by $200 starting in March.” This specifies the action, the amount and the starting point.   

M is for measurable: How will you track your progress? 

Measuring your progress is essential for staying motivated and accountable. Without measurable targets, it can be hard to know if you’re moving forward or need to adjust your plan. Tracking progress also helps you celebrate milestones along the way, which reinforces positive habits.  

Example: “Make extra mortgage repayments for a total of $1,500 by 31 December 2024.” Not only does this provide a tangible target, but you can track when and how you you reach it. You can use a simple spreadsheet to keep an eye on your progress.  

A is for achievable: Can you realistically do this? 

There’s nothing wrong in aiming for the stars (“I’d like to double my repayments from next month”), but your financial goals need to be realistic based on your income, expenses, and overall financial situation. Stretching too far might leave you frustrated or financially strained.  

Remember, achievability is about balance: make sure your goals challenge you but are still within reach. Also, if you’re on a fixed-term mortgage rate, it’s crucial to check that your extra payments are within the threshold set by your lender, to avoid an early repayment fee. On the other hand, if you’re on a floating rate, you can pay as much extra as you like without incurring a penalty. 

Example: “I will increase repayments by a small, manageable percentage or amount – like 5% of $100 a month.”  

R is for relevant: Does it align with your priorities? 

Your mortgage goals should fit within your broader financial priorities. Ask yourself: why is this goal important, and how does it serve my long-term objectives? 

Relevance ensures that every step you take aligns with your bigger picture, making your efforts feel worthwhile.  

Example: “Reduce my loan term by three years by 2028” might make sense if your priority is financial freedom. “Build up equity to 50% by the end of 2030” can be a good goal if you’re planning to buy a rental or your next home by then.  

T is for Time-bound: When will you achieve it? 

Goals without deadlines often remain dreams. By attaching a clear time frame to your mortgage goals, you create a sense of urgency and accountability. Also, keep in mind that life is unpredictable: having a timeline can help you evaluate your progress and reassess if circumstances change.  

Example: “Save an additional $5,000 to make a lump sum payment by December 2027.” The time-bound element means you can work backward, breaking your goal into smaller, more manageable steps – like setting aside $416 a month.  

We’re here to help 

Setting SMART mortgage goals can transform the way you approach your loan, giving you a clear path to follow in the new year and beyond. 

Ready to get started? Contact your Mortgage Link adviser today to discuss your circumstances.