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No Fuss Home LoansNo Fuss Home LoansPay off my Mortgage Faster

Pay off my Mortgage Faster


A mortgage can be a long term and expensive commitment. But you have the power to determine just how long you want to go on paying expensive interest!

There are simple strategies that work like magic to help you pay off your loan faster, which can slash years off your loan term, saving many thousands of dollars in interest.

Is it really Magic? Well the secret to most of the strategies out there boils down to just “pay a little more”, but the magic lies in the power of compounding interest. That is; even small amounts, with time and interest, multiply up to big dollars.

You’d be amazed, how small extra amounts can make a big difference, when saving that loan interest year after year, after year – adding up to huge savings. One borrower Susannah, 31 of Glebe, puts just two dollars a day into a jar and pays that each month into her $250,000 mortgage. “On my current interest rate of 6.5%, I’ve worked out this should save over $20,000 of interest, and pay off the loan in 23 years instead of 25. That’s a big return from small change”

Any extra repayment in your loan will reduce your principal and save on interest. And any time is a good time to start, but the sooner you start, the more years that money can work its compounding magic.

Top strategies to pay off a loan faster:


If you currently make monthly repayments; pay half of that each fortnight instead. The trick here is there’s 26 fortnights in a year compared to 12 months, so this little discipline means a whole extra repayment each year, and would save about 5 years off a 30 year loan at today’s interest rates. You’d need to ensure your loan allows this sort of flexibility.


If the lender cuts your interest rate and repayments you should maintain your previous repayment level. The difference is working for you to reduce the outstanding principal. You won’t miss the money you weren’t seeing anyway..


Any ‘windfalls’ like tax refund, a salary bonus, birthday money: tempting to spend it on something as a treat, but in your loan it will repay you a lot more over time than a new pair of shoes or a gadget.

How else can I pay off my loan faster?

Other simple strategies don’t necessarily involve paying extra, but just come down to smart financial management.


A linked Offset account is a great loan feature: any savings or salary parked even temporarily in an offset account effectively reduces the interest owing at your current rate. As an investment that’s like a guaranteed return- tax-free – and will far outperform any savings account (where interest IS taxed)


It can pay dividends to regularly review your loan and lender. You may be able to secure a better deal on rates, fees or features elsewhere that can save you big time, long term. There may be exit fees or other costs to factor in, but you could still come out way ahead.


Home loan products can change. And, interest rates are always changing.  So its always worth staying in close contact with your broker. Many finance professionals recommend an annual review, but if your circumstances are changing or your thinking of making some decisions that will impact your income and expenses – you should talk to your broker, they can help you select the right product, and then negotiate on any fees, charges and or rates that may otherwise apply.


At No Fuss , we ensure we discuss your unique circumstances and find the loan that has the features, flexibility, and competitive rates you require to meet your individual needs. We compare a range of loans across many quality lenders to find the ideal product for you. Best of all, our service is free.

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I have known Kathy since she was highly recommended to me six years ago. As soon as I met her I knew Kathy was a professional of exceptional integrity. Someone I could rely on and trust absolutely. Her warm and relaxed manner immediately gave me confidence that I was in good hands. Since then Kathy has become a valued adviser. She has negotiated several home loans for me. Always smoothly, without delay and for me, totally stress free. I look forward to my continued association with Kathy knowing that I can always rely on her advice and that it will be in my best interests. I would recommend her without exception to anyone who wants a professional of this quality.

Jenny Atkins

Kathy is not your average mortgage broker. She has been my trustworthy advisor and educator over the years and always gone above and beyond to ensure the whole process is managed effectively.

She always conduct herself in a professional manner, without ever losing her personal touch. Thank you Kathy, for your support for the last 6 years and many more years to come!

Cindy Gunadi