Written by Gareth Sweeney
Reviewed by Kristian Said, Senior Mortgage Broker
Reducing the life of your loan isn’t difficult; there are many simple things you can do to cut years off your mortgage. Here are two simple tips that will help you be mortgage-free sooner than planned.
1. Small extra repayments
One of the most obvious ways to pay off your home loan quicker is to make extra repayments. “Planning for regular, small cash injections can have a great impact over the life of a loan,” says Teo Torrelli, Director of MKS Lending Group.
“Let’s say we give an extra $50 a fortnight on a $500,000 loan, that saves you $32,000 of interest over the life of the loan which in turn will save you just over two years,” says Teo who has been arranging loans as a Mortgage Broker since 1985. “That’s only $25 a week.”
2. Switch your payment intervals
If you find that you don’t have the discipline to make extra repayments, then simply switching your payment structure from monthly repayments to fortnightly can also help save years off your mortgage.
“Because there are 12 months in a year but 13 four-week cycles, by switching your payment intervals from monthly to fortnightly, you are essentially paying off an extra month per year,” says Teo.
Contact MKS Lending Group who can help you be mortgage-free sooner than planned.
More ways to get ahead in 2026
- Use an offset account. Money in an offset account reduces the balance you pay interest on, while staying available for everyday use. Try our repayment calculator.
- Pay fortnightly. Paying half your monthly repayment every fortnight adds up to one extra monthly repayment each year.
- Keep repayments the same when rates fall. If your rate drops, keeping your repayments at the old amount pays the loan down faster.
- Review your rate every year. Lenders often offer sharper rates to new customers than to existing ones. A loan review shows whether you could save.
Want to see the numbers for your own loan? Use our repayment calculator, or book a free loan review and we will run them for you.
Four more ways to cut years off your loan
3. Keep paying the same amount when rates fall
When your lender cuts its rate, your minimum repayment usually drops too. If you can, ask your lender to keep your repayment at the old amount. You will not notice the difference in your budget, but every extra dollar goes straight off the balance, which reduces the interest charged from that day on.
4. Put lump sums to work
Tax refunds, bonuses and cash gifts can make a real dent in your loan if you put them to work straight away. Parking a lump sum in an offset account cuts your interest just like an extra repayment, but the money stays easy to reach if something unexpected comes up.
5. Review your rate at least once a year
Lenders often save their sharpest rates for new customers, so a loan that was competitive a few years ago can quietly fall behind. A yearly review takes minutes with a broker. If your lender will not sharpen its rate, refinancing could save you more than any extra repayment.
6. Round up your repayments
Rounding a repayment of $2,860 up to $3,000 is an easy habit to keep. Set it once as a direct debit and let it run in the background.
Before you start: three things to check
- Fixed rate limits. Many lenders cap how much extra you can pay on a fixed rate loan each year, and paying more can trigger fees. Check your loan terms before you make a large payment.
- Offset versus redraw. Both reduce your interest, but redraw money is technically paid off the loan, and some lenders restrict or charge for access. An offset account is usually more flexible.
- Your emergency buffer. Keep enough savings to cover a few months of expenses before you pour every spare dollar into the loan.
See what it could save you
Use our mortgage repayment calculator to test different repayment amounts and frequencies, or book a free loan review and we will show you the numbers for your actual loan.
Frequently asked questions
Is it better to make extra repayments or use an offset account?
Both save the same interest, dollar for dollar. Extra repayments suit people who want the money locked away. An offset account suits people who want the savings available for emergencies or future plans, and it can be better if you might turn the home into an investment property later.
Do fortnightly repayments really make a difference?
Yes, if you pay half your monthly amount every fortnight. Because there are 26 fortnights in a year, you end up making the equivalent of 13 monthly repayments instead of 12, which shortens your loan and reduces the interest you pay.
Can I make extra repayments on a fixed rate loan?
Usually only up to a limit set by the lender each year. Paying more than the limit, or paying the loan out early, can lead to break costs. A split loan, with part fixed and part variable, lets you lock in certainty while still making unlimited extra repayments on the variable part.
Want advice for your situation?
Book a free, no-obligation loan review with MKS Lending Group. We compare 50+ lenders and explain your options in plain English.