Paying off your home loan faster isn't just about making extra repayments — although that helps. There are several smart strategies that can shave years off your mortgage and save you tens of thousands in interest. Here are 7 tips from our team at Loan Connect. 1. Switch to Fortnightly Repayments Instead of making 12 monthly repayments per year, fortnightly repayments mean you make 26 half-payments — the equivalent of 13 full monthly payments. That one extra payment per year adds up significantly over time. 2. Use an Offset Account An offset account is a transaction account linked to your mortgage. Every dollar sitting in that account reduces the balance your interest is calculated on. If you have a $500,000 loan and $30,000 in your offset, you only pay interest on $470,000. 3. Make Lump Sum Payments Tax return? Bonus? Inheritance? Putting lump sums directly onto your mortgage can dramatically reduce your loan term. Even $5,000 extra at the right time can save years off your loan. 4. Round Up Your Repayments If your minimum repayment is $2,340, consider rounding it up to $2,500. The extra $160 per month goes directly to reducing your principal. 5. Review Your Rate Regularly One of the biggest mistakes homeowners make is "set and forget" with their loan. If your rate hasn't been reviewed in 2+ years, there's a good chance you're paying too much. A quick refinance review with our team could save you hundreds per month. 6. Avoid Extending Your Loan Term When Refinancing When people refinance, they sometimes reset back to a 30-year loan. This can lower repayments but extend the time you're in debt. Where possible, keep the same or a shorter remaining term. 7. Use a Redraw Facility Wisely A redraw facility lets you access extra repayments you've made. This is great for emergencies — but resist the temptation to dip in for lifestyle spending. The money you leave in there is saving you interest every day. Want a Free Loan Health Check? Not sure if your current loan is working as hard as it could? Book a free loan health check with one of our Sydney mortgage brokers. We'll review your rate, structure, and features — and tell you honestly whether a change makes sense. Contact Loan Connect today. No pressure, just good advice.
