Review your rate: Regularly check your rate, whether negotiating or shopping around, to help pay off your loan faster.
Update your repayments: Increase repayment frequency or add lump sums (e.g. a tax refund) to reduce interest and speed up repayment.
Explore other loan features: Look into redraw facilities, offset accounts and other features that might help you pay off your loan sooner.
Speak with a professional: Talk to a broker or financial advisor to find the best option for your situation, whether that’s shortening your loan term or something else.
With the RBA keeping the cash rate unchanged at 3.6% (RBA, Nov 4, 2025), and steady rates sitting around the 5–6% range (for some lenders) – much higher than the very low rates seen during COVID – homeowners are looking to pay off their loans faster (Canstar, Nov 20, 2025). Paired with rising inflation and cost-of-living pressures, homeowners are seeking financial breathing room.
You might’ve come to this guide for that reason, or simply because you want to pay off your mortgage sooner (or maybe both). Your dream of being mortgage-free could be closer than you think. Depending on your situation, you’ve got a few options that might help you pay off your loan and reach that goal sooner. Let’s explore:
Tip 1: Negotiate a lower interest rate (or explore other lenders)
Interest rates can make a huge difference to your monthly repayments. If you can lower your rate, you might free up some cash to pay down your loan faster.
Refinancing to a more competitive rate takes some effort, but it’s often worth it over time. In some cases, borrowers may save thousands in interest, depending on their situation. That said, you don’t always have to switch lenders; you can always negotiate your rate with your current lender.
Sometimes, just asking your current lender to match competitor rates, or those offered to new customers, could work – especially if you’ve been a steady, reliable borrower. The last thing your lender wants is for you to go elsewhere, so there’s no harm in asking.
Why it works:
Lenders don’t want to lose you, so there’s a big chance they’ll say yes.
If you look elsewhere, you might find a better deal that suits you, not just a lower rate but other loan features too.
Most importantly, you could end up paying less.
Tip 2: Increase your repayment frequency (if you can)
Another common approach borrowers take to pay off their home loan faster is moving from monthly to fortnightly repayments.
What’s the difference? With many fortnightly set-ups, you effectively pay the equivalent of one extra month’s repayment per year.
It might not sound like much, but that extra amount can help chip away at your loan faster over time, bringing you one step closer to being mortgage-free.
Why it works:
You can end up paying the equivalent of an extra month each year, which helps reduce your principal faster.
The faster you pay off your loan principal, the less interest you pay overall.
Tip 3: Consider making extra repayments (if possible)
It might sound obvious, but making extra repayments is one of the simplest ways to pay off your home loan sooner. You don’t need to do it regularly – even occasional extra payments can help.
If you get a bonus, tax refund, or some other extra cash, you could consider putting some or all of it into your home loan, if it suits your budget.
Plus, by paying off your loan faster, you’ll reduce the total interest you pay over time.
Just remember, if your loan has a fixed interest rate, extra repayments might come with fees or penalties. Be sure to check with your lender.
Why it works:
The more you pay, the faster your loan is paid off.
You end up paying less interest over time because your principal is lower.
Aussie tip: Use an extra repayments calculator to see what you could save.
If your finances allow it (always check with your financial advisor), making extra repayments could help you pay off your home sooner. Use our extra repayments calculator to estimate how a little extra can make a big difference.
Tip 4: Use a redraw facility to get back extra funds when needed
If you want to make extra repayments but still want the flexibility to access the funds if needed, a redraw facility could be a one option to consider.
What is it? Essentially, it allows you to redraw extra repayments if you need to, for example, if you’ve been made redundant or face another unexpected expense.
Keep in mind, some lenders charge a small fee to withdraw from your redraw, so be sure to discuss this with your lender and check if it’s right for you before setting it up.
Why it works:
Like repayments, you’re putting more in, so it’s paid off faster.
It can offer peace of mind because the extra money may still be available if you need it, depending on your loan terms.
Need help exploring your options? Speak with an Aussie Broker.
Paying off your home loan faster is possible, but the right approach depends on your unique situation. A broker can help you understand what might work best and ease any concerns.
Tip 5: Open an offset account and start saving
An offset account works like a savings account linked to your home loan. What’s great about it? The money you keep in it reduces the interest you pay on your loan balance.
For example, if your loan balance is $500K and you have $50K in your offset account, you’ll only pay interest on $450K.
By cutting the interest charged, an offset account can free up extra cash to put towards your repayments, helping you pay off your loan sooner.
Some people choose to pay their salary directly into their offset account and use a credit card for day-to-day expenses, but this approach isn’t right for everyone. You’ll need to stay on top of credit card repayments, interest and fees, and this option might not suit everyone. It’s important to check with your financial adviser or broker before making a decision like this.
Why it works:
You could end up paying significantly less interest.
Lower interest means more of your repayments go directly to the principal.
Tip 6: Look to refinance (there might be a better deal out there)
When it comes to paying off your mortgage faster, reviewing your home loan and potentially refinancing might be worthwhile. In fact, it’s important to regularly check your lender and rate in case there’s a better option out there for you. Things change – rates, your personal situation – and what you started with might not be the best anymore. Refinancing could get you a better rate and help you pay off your mortgage faster.
When comparing loans, consider if you’re paying for unnecessary features, watch out for fees, and check the loan term, as some lenders reset it even if you’ve paid off a significant amount.
If you find a loan that better supports your goal of paying off your home sooner, switching lenders could be a smart move. Just be sure to check with your broker if this is the right move for you.
Why it works:
You could end up paying significantly less.
You might find other benefits like better customer support or loan features – remember: it’s not just about the rate.
Tip 7: Avoid interest-only payments (if it suits your situation)
While interest-only payments can have benefits for some people, namely property investors, they won’t help you pay off your mortgage sooner. So if paying off your home sooner is your goal, interest-only payments may not be the most suitable option.
Why? To reduce your loan balance, you need to make repayments towards the principal, not just the interest charged on top. Principal-and-interest repayments are generally the way to make faster progress.
Why it works:
All repayments go towards both interest and principal, not just interest.
The more principal you pay, the less interest you pay over time.
Tip 8: Shorten your loan term and pay off your mortgage faster
Your financial situation may have changed since you first took out your home loan. If you’re in a stronger position now, shortening your loan term – for example, from 30 to 25 years – could be an option to explore.
Why? Because it effectively means higher regular repayments, which can help you pay off your mortgage faster and reduce the interest you pay over time, if you can comfortably afford it.
It’s important to note, though, that a shorter term means higher minimum repayments, so it’s not for everyone. Make sure you consult your financial advisor to see if this option is feasible and right for you. You need to be comfortable and able to manage a shorter loan term.
Why it works:
Higher repayments mean you pay off your loan much faster.
You get to the finish line sooner and become mortgage-free (the dream!).
You pay less interest over the life of your loan.
Bonus tip! Don’t forget to budget.
As a homeowner, budgeting is vital – not just to help you make your repayments (and pay them faster), but also to cover all the extra homeowner costs you have (or will have if you haven’t bought yet). Think upkeep, rates, renovations, utilities, insurance, and more.
Maybe you’re already keeping up with repayments, and that’s great. But if you want to pay off your home loan sooner (which is probably why you’re reading this), budgeting will be key. Take a look at your spending and see if there’s any way to cut back. Remember: small purchases add up over time.
Take control of your home loan journey and explore ways to pay off your mortgage sooner
Rising inflation and the recent RBA decision to hold the cash rate steady are on many homeowners’ minds. With the right budgeting, advice from your financial advisor and broker, and a proactive approach, you could be one step closer to paying off your mortgage faster.
You’ve gotten started by reading this article – the next step is to speak with a professional to see which options suit your financial situation and goals (or if another approach might be better).
To help you on your journey, we’ll leave you with this quick list of common mistakes to avoid:
Aussie tip: Avoid these common mistakes:
Not checking loan terms or fees can mean extra repayments or refinancing cost more than you expect.
Not consulting your financial advisor – can you afford extra payments?
Not knowing your new loan term after refinancing (it might be longer).
Paying for loan features you don’t use, like offset accounts or redraws.
Not keeping up with market rates or reviewing your loan regularly.
Overlooking other options like investments (ask your financial advisor).
Not making sure extra repayments reduce your loan principal.
Not keeping enough savings or emergency funds for unexpected expenses.
Not prioritising high-interest debts, such as personal loans or credit cards.
Need help paying off your home loan faster? Aussie can help.
Whether you’re looking to switch lenders, increase repayments, refinance, or something else, speaking with an Aussie Broker can help you weigh up your options and find what suits you.
