Your mortgage might be the biggest financial commitment you ever take on — but the good news is, small changes can make a huge difference to how quickly you pay it off.
You don’t need massive lump sums or huge pay rises. Just smart habits and a little consistency.
Here’s the simple breakdown.
1. Make extra repayments (even small ones)
The easiest way to pay off your mortgage faster is to put anything extra toward the loan.
It doesn’t have to be hundreds each week — even small amounts add up because they reduce the principal, which reduces the interest you pay.
Extra money could come from:
- Tax returns
- Work bonuses
- Side income
- Rounding up repayments (e.g., $2,023 → $2,050)
- Putting an extra $20–$50 a week if you can
Over 10–20 years, these tiny boosts can wipe years off your loan.
2. Switch to fortnightly repayments
Paying fortnightly instead of monthly is one of the simplest hacks.
Why it works:
- Monthly = 12 payments
- Fortnightly = 26 payments
- 26 fortnights = 13 months
So you effectively make one extra month of repayments every year, without feeling the difference too much.
This alone can shave years off your mortgage.
3. Use an offset account (if your loan allows it)
An offset account is like a normal bank account linked to your home loan.
Money sitting in that account reduces how much interest you pay.
Example:
- Loan: $500,000
- Offset balance: $20,000
- You only pay interest on: $480,000
You still have full access to your money, but every dollar offsets interest.
Keeping savings, emergency funds, or even everyday spending money in your offset can reduce your loan faster without doing anything extra.
4. Avoid lifestyle creep as your income grows
As people earn more, they often spend more — this is called lifestyle creep.
But if you keep your living costs steady and put the increase toward your mortgage, your loan drops fast.
For example:
- $50 wage increase per week
- Put it straight to your mortgage
- That’s $2,600 extra a year
- Over 10 years: $26,000
- Over 20 years with compounding interest saved: huge difference
Small discipline = massive long-term gain.
5. Refinance when it makes sense
Interest rates change — and so does your borrowing strength.
Refinancing can help you:
- Lower your rate
- Reduce interest
- Pay off your loan faster
- Access better features (like an offset account)
Even cutting your rate by 0.5% can save thousands over the life of your loan.
It’s worth reviewing your loan every 1–2 years.
So… what’s the best way to get started?
You don’t need to overhaul your life to pay off your mortgage faster.
A combination of small extra repayments, smart account choices, and staying disciplined as your income grows can shave years — even decades — off your loan.
The key is consistency. A little bit regularly always beats a lot every now and then.
If you want to see how quickly you could pay off your loan with a few simple changes, our friends at Simplii Finance can help you map it out.
