How to Pay Off Your Mortgage Faster

A mortgage doesn’t have to last 25 or 30 years. There are strategies you can use to reduce the interest you pay and clear your debt sooner.

1. Make extra repayments

Any extra payment goes straight to reducing your loan principal, which lowers the interest charged. Moneysmart points out that even small extra repayments can shorten the life of your loan moneysmart.gov.au.

2. Switch to fortnightly repayments

By making fortnightly repayments instead of monthly, you effectively pay the equivalent of one extra monthly payment per year. This can shave years off your mortgage term and save thousands in interest moneysmart.gov.au.

3. Use an offset or redraw facility

Keeping savings in an offset account reduces the interest calculated on your mortgage. Similarly, a redraw facility lets you park extra funds in your loan and withdraw them if needed. CommBank explains how offset and redraw work commbank.com.au.

4. Look for a lower rate

Regularly review your rate. If you can secure a lower interest rate (through negotiation or refinancing), every reduction directly reduces your interest cost. Brokers can help negotiate with your existing lender or compare offers across lenders.

5. Avoid interest‑only loans (if possible)

Interest‑only loans reduce repayments in the short term, but you’re not reducing the principal. Moneysmart cautions that interest‑only periods cost more over the life of the loan moneysmart.gov.au.

Before making extra repayments or switching repayment frequencies, check whether your loan charges break fees or extra payment limits. Your broker can show you how different strategies affect your repayment timeline.