The simple changes that can help you pay off your mortgage sooner

This guide shows you how simple money shifts, extra repayments, smart budgeting and offset strategies can help you pay off your house early and become mortgage-free sooner.

Paying off your house early is probably every mortgage holder’s dream. With interest rates rising and the cost of living pinching every corner of the household budget, more Australians are looking for clever ways to fast-track home loan repayments without feeling deprived. The good news? You can shave years off your loan term by freeing up cash, improving your spending habits, and using a handful of insider mortgage payoff strategies that really work. Below, we break down simple steps to boost cash flow, increase extra repayments, and build long-term financial stability, all while keeping your lifestyle intact.

How can you pay off your mortgage faster in Australia?

You can pay off your mortgage faster by freeing up extra cash for additional repayments, reducing interest charges, and using tools like fortnightly repayments, offset accounts, lump sum payments, and regular loan reviews. Even small extra principal payments can save thousands in interest over the life of your home loan.

5 Practical steps to free up cash for extra mortgage payments

1. Create a realistic 12-month budget

Paying off your house early starts with knowing exactly where your money goes. A detailed, realistic budget gives you clear visibility over your cash flow, upcoming bills, and spending patterns. When you can see your finances clearly, month by month, it becomes much easier to plan extra repayments or build up your offset account. If you want to explore potential savings, try our Home Loan Repayment Calculator to see how even small extra repayments can affect your loan term.

2. Reduce high-interest debts first

Before putting extra money into your mortgage, focus on clearing any high-interest debts like credit cards, buy now pay later accounts, personal loans, or interest-only loans. The interest rate on these products is usually much higher than your home loan interest rate, meaning paying them off first will save you more in the long run and free up cash flow for extra mortgage repayments.

3. Automate regular extra repayments

Once your bills and essential expenses are budgeted for, create a dedicated account for mortgage overpayments. Then set up an automatic transfer each payday, even $20 or $50 a week makes a difference thanks to the way mortgage interest is calculated daily. Automation helps you stay consistent and reduces the temptation to spend money that is earmarked for your financial goals.

4. Reduce lifestyle creep in ways that don’t hurt

Small everyday adjustments can create hundreds of dollars in savings each month which can then go straight towards your home loan principal. A few ideas:

• Review your grocery spend, meal planning and switching brands can free up money
• Compare your electricity and internet plans, many Aussies save hundreds of dollars a year by switching
• Audit your subscriptions, cancel unused or even downgrade, and set calendar reminders before renewal dates
• Do cheap or free workouts instead of paying for a gym
• DIY beauty and haircare when possible
• Reduce alcohol and cigarettes for big long-term savings
• Shop around for home, contents and car insurance to avoid overpaying. Download our free Get a better deal checklist.

Directing these savings into extra repayments or an offset account can significantly reduce interest charges.

5. Structure your bills for better cash flow

Structuring your expenses in a smart way can free up cash flow that goes straight onto your mortgage without changing your lifestyle.

Try grouping bills into predictable cycles, syncing due dates where possible, and smoothing irregular costs so they don’t blow out your budget. Many MyBudget clients use this method to stabilise cash flow, reduce financial stress, and create room for extra repayments. Even this simple shift can improve your monthly repayment potential.

5 Mortgage payoff strategies that shave years off your loan

1. Make extra repayments whenever possible

Every dollar you pay above your minimum monthly repayment goes straight to the principal of your loan, reducing the interest charged and shortening your loan term. This is the foundation of mortgage amortisation with extra principal payments. Even small amounts make a difference over 20 to 30 years.

2. Switch to fortnightly repayments

If you pay your mortgage monthly, switch to fortnightly payments. This means you pay the same as one extra monthly payment each year. It reduces your loan term and total interest paid. It is one of the simplest ways to pay down your mortgage faster without noticing a big difference in your cash flow.

3. Use your offset account wisely

An offset account effectively reduces the loan balance your interest is calculated on. Keeping your savings, tax returns, emergency fund, and everyday cash in your offset helps minimise interest charges. MyBudget clients often use offset accounts strategically by smoothing their bills and transferring buffer funds into their offset to keep interest low while maintaining cash flow stability.

4. Put windfalls and lump sums straight onto your loan

Tax refunds, bonuses, inheritances, side-hustle income and hosting a garage sale can all be turned into lump sum repayments that reduce your principal and interest charges immediately. Some of the biggest leaps our clients make toward mortgage freedom come from directing occasional lump sum repayments onto their home loan.

5. Review your home loan regularly

Interest rates change, lenders adjust their offers, and your loan type might no longer fit your situation. Reviewing your mortgage every one to two years can reveal better rates, cashback offers, or loan terms that improve your repayment cycle.

Even a small reduction in your interest rate can significantly reduce your total interest paid.

Clients refinancing with MyBudget Loans save on average $10,000 in repayments per year.

MyBudget’s Money Coaches can help you pay off your mortgage faster

Our expert Money Coaches help clients get ahead by creating predictable cash flow, smoothing irregular bills, managing spending habits, and planning extra repayments with confidence.

Our 12-month financial roadmap helps thousands of Australians budget effectively, build long-term savings, and reach their financial goals, including paying off their home loan early.

If you want to feel more in control of your mortgage, call us today on 1300 300 922 or enquire online for a free no-obligation chat.

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