Paying off your mortgage faster is achievable with smart strategies like offset accounts, extra repayments, and better loan deals, saving you thousands in interest over time.
Are you feeling stuck with your home loan payments? Do you dream of the day you won’t owe so much on your house? You’re not alone! Lots of Aussies wonder how to pay off their mortgage faster, so they can be free of the big bill sooner.
At Fox Home Loans we know your home loan is probably the biggest money promise you’ll ever make, but we also believe it doesn’t have to last forever. We’re here to show you clever ways to pay off your loan years sooner and save thousands on your interest. Think of us as a friendly guide on the road to having more money for yourself.
We’ll give you clear, helpful tips without confusing jargon. Let’s look at some easy ways to speed up your mortgage repayments and take charge of your money!
One of the easiest ways to pay off your mortgage faster is to just pay a little extra each time. Even small extra payments can end up making a huge difference over time.
For example, if you pay $2,000 a month, try paying $2,100 or even $2,200 instead. That extra $100 or $200 might not seem like much, but it slowly cuts down on how much you owe. This works because at the start of your home loan, most of your payment goes towards interest. By paying extra, you’re paying off the main amount you borrowed faster, which means less interest overall.
Make sure you are not stretching yourself too thin; even if you are only able to put an extra $20 towards your repayment, ultimately it will all help in the end.
Did you know that just changing how often you pay can help pay off your mortgage repayment sooner? Most home loans are set up for monthly payments, but if you pay every week or fortnight, you’ll actually make an extra month’s payment each year.
For example, let’s say you switch to fortnightly repayments. There are 12 months in a year, but there are 26 two-week periods. If you pay half of your normal monthly payment every two weeks, you’ll end up making 26 half-payments. That’s like making 13 full monthly payments! This small change doesn’t feel like a big squeeze on your budget, but it keeps chipping away at your loan, helping you pay off your home loan faster.
Our home loan repayment calculator is a helpful tool you can use to really see the difference. It can show you what happens if you try switching your repayment frequency and how much you can save on interest and time on your home loan.
An offset account is a great way to figure out how to pay off your mortgage faster. It’s just a regular bank account, like a savings account, that is linked to your home loan. The cool part is that the money in your offset account lowers the amount of your home loan that you pay interest on.
Let’s say you owe $400,000 on your home loan and you have $50,000 in your offset account. You’ll only pay interest on $350,000! The more money you keep in this account, the less interest you pay. This helps you pay off your loan faster. It’s a great way to make your everyday savings work harder for you, helping reduce your mortgage repayment without it feeling like you’re paying extra from your normal money.
Things change, and so do your interest rates. If you haven’t checked your home loan lately, you might be missing out on a better deal. Refinancing means switching your current loan to a new one, either with your current bank or a different one. You usually do this to get a lower interest rate or better features.
Even a small drop in your interest rate can save you thousands of dollars over your loan term. If you refinance to a lower interest rate but keep paying the same amount you were paying before, that extra money will go straight to paying off your loan faster.
To learn more about refinancing and how our dedicated Home Lending Specialist will do the heavy lifting for you, read our blog “Refinance with a Mortgage Broker for Better Home Loans.”
Did you get a tax refund, a bonus from work, or even some money from a gift? Instead of spending it all, think about putting a lump sum payment directly onto your home loan. These extra payments go straight to the amount you owe, instantly cutting down how much interest you’ll pay later.
This works well when you first get your home loan because that’s when you pay the most interest. Every dollar you put in as a big payment at this time can save you many more dollars in interest later.
If you are looking for some more helpful ways, read Moneysmarts article “Pay Off Your Mortgage Faster.”
Don’t let your mortgage repayment feel like it will never end. Fox Home Loans is your trusted mortgage broker on the Sunshine Coast, guiding you on how to fast-track paying off your home loan sooner, help you save thousands!
 Bill Robb |
Bill has over 26 years of experience working in the finance industry. He has worked across a number of different businesses including Home Loans, Personal Loans, Collections and Insurances. Bill's passion is to utilise his knowledge and experience in the industry to assist clients in meeting their financial goals.
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Reviewed by: Nathan Drew ✅ Fact checked 📅 Last updated: Sep 29, 2025 |
