With interest rates being just 2.5% and set to move even lower in 2015, the cost of borrowing is obviously extremely low.
While it can be tempting to spend the money saved from lower borrowing charges, in the long run it makes sense to pay off debts while interest rates are at a low ebb so that when they do rise, you're not caught out.
Of course, another option is to invest the money you save from lower interest charges in high quality stocks. That way, you stand to benefit from their long-term growth potential and dividend payments, which could make a major impact on how quickly you repay your mortgage.
With that in mind, here are three stocks that could be worth buying right now, and which could help you to pay off your mortgage.
Woolworths Limited
Even though shares in Woolworths Limited (ASX: WOW) have delivered disappointing returns in recent months, it doesn't mean that they won't make gains moving forward. For example, they have fallen by 12% in the last month alone, as investor sentiment has declined following rather disappointing sales figures and concerns regarding competition in the markets in which Woolworths operates.
However, with a fully franked yield of 4.7%, Woolworths could make a positive contribution to your mortgage repayments. And, with the company having grown dividends per share at an annualised rate of 5.7% over the last five years, it could offer real term increases to shareholder payouts moving forward.
Furthermore, with a price to sales ratio of 0.61, capital gains could be on the cards over the medium term, too.
Scentre Group Ltd
As well as borrowers benefitting from lower rates, retailers and real estate companies also gain a boost from consumers having an incentive to spend rather than save. In fact, this seems to be the view that the market has adopted, since the share price of shopping centre operator, Scentre Group Ltd (ASX: SCG), has risen by 13% during the last six months.
As well as the potential for improving sentiment should rates fall next year, Scentre also offers a yield of 5.8%. And, with increases in dividends per share set to match inflation over the next two years, shareholder payouts should maintain their value in real terms.
Furthermore, with Scentre posting strong sales numbers throughout recent months, there could be positive surprises with regard to its top and bottom lines, which could help its share price performance next year to emulate that of the last six months.
Westpac Banking Corp
The banking sector is also set to be a major beneficiary of continued low rates, with fewer bad loans and higher demand for new loans being predicted for the sector. As a result, shares in banks such as Westpac Banking Corp (ASX: WBC) have risen strongly in recent years, with its share price being 57% higher than it was three years ago.
Clearly, it's now less appealing from a valuation perspective, however its P/E ratio of 13 is still below the sector average of 13.7 and considerably lower than the ASX's P/E ratio of 15. As a result, there is scope for an upward adjustment to its rating over the medium term.
In addition, Westpac yields a hugely enticing (and fully franked) 5.8%. With dividends per share having risen by 9.4% per annum over the last five years, it has a great track record of shareholder payouts and, looking ahead, forecast increases in dividends of 4.5% per annum over the next two years could make a real difference to your mortgage repayments.