The Smart Way to Pay Off Your Mortgage Faster

It sounds simple, but this is one of the easiest ways to get ahead. Most lenders calculate interest daily and charge it monthly, so the more often you make repayments, the faster your balance drops.

By paying fortnightly instead of monthly, you effectively make the equivalent of one extra month’s repayment each year — 26 fortnights instead of 12 months. That small change can cut years off a typical 30-year loan.

If your loan has an offset account, make the most of it. Every dollar sitting in your offset reduces the balance you’re charged interest on.

For example, if you owe $600,000 and have $20,000 in your offset, you’ll only pay interest on $580,000. That means more of your repayment goes towards the principal — the amount you actually owe — helping you pay down the loan faster.

Try to have your salary paid straight into the offset account, and use it for everyday spending. Even keeping your money in there for a few extra days each month helps reduce interest.

If your monthly repayment is $2,367, round it up to $2,400 or even $2,500. That small increase — the cost of a few coffees a week — can take years off your loan and save thousands in interest.

You can also set up an automatic transfer so it happens without thinking about it. Consistency is key.

Tax refund? Work bonus? Unexpected windfall? Instead of splurging, consider putting at least a portion straight into your home loan.

For instance, a one-off $5,000 payment early in your loan could save you more than double that in interest over time. It’s a simple, stress-free way to get ahead.

Many homeowners stay with the same lender for years, assuming they’re getting a fair deal — but that loyalty can cost you. Lenders often offer better rates to new customers than existing ones.

If your rate starts with a “6” when others are offering a “5”, it’s worth reviewing your options. Even a small difference — say, 0.50% on a $600,000 loan — could save around $3,000 a year in interest. Refinancing can be a quick way to free up cash and speed up your loan payoff.

Some lenders let you pause repayments for a few months during tough times. While it can be a relief, remember that interest keeps building up during the break — meaning your loan could take longer (and cost more) to pay off in the end.

If you do need to pause, make a plan to catch up once you’re back on your feet.

Everyone’s financial situation is different. A mortgage broker can look at your specific goals, income, and loan structure to find the smartest ways to pay off your mortgage faster. Sometimes a small change — like adjusting repayment frequency, tweaking your offset setup, or refinancing to a better rate — can make a big difference. Paying off your mortgage sooner isn’t about luck or cutting back to the bone — it’s about making small, consistent choices that work in your favour.