How to Pay Off Your Mortgage Faster in 2026

Extra Repayments: Even $50 a Fortnight Changes the Game

Extra mortgage repayments go directly to your principal. That reduces the base your interest is calculated on every single day. Because interest on Australian home loans is typically calculated daily on the outstanding balance, even modest extra amounts create a compounding effect that accelerates over time.

Here is what that looks like at current rates.

You do not need to find hundreds of dollars. Even rounding up your repayment to the nearest $50 or $100 counts. The key is consistency.

One thing to check: if part of your loan is fixed, there may be limits on how much extra you can repay each year without penalty. Most variable loans allow unlimited extra repayments.

Why this works better when rates are high: at 6.5%, every dollar of principal reduction saves 2.6 times more interest per year than it did at 2.5%. Your extra repayments have never been more effective.

The Fortnightly Payment Trick (and Why It Actually Works)

This is one of the lowest effort ways to reduce your mortgage term, and it costs you nothing extra day to day.

Why it works: There are 26 fortnights in a year, not 24. So if you pay half your monthly repayment every fortnight, you end up making the equivalent of 13 monthly payments per year instead of 12. Moneysmart confirms this creates one full extra monthly payment annually.

On a $500,000 loan at 6.5%, this single change can save approximately $50,000 or more in interest and cut 3 to 4 years off a 30-year term.

There is also a secondary benefit. Fortnightly payments reduce the daily balance faster between payment cycles, which means less interest accrues between each payment.

How to Actually Maximise Your Offset Account

An offset account reduces the principal your interest is calculated on, dollar for dollar, every day. Most borrowers understand the basics. Fewer use their offset strategically.

Here are the tactics that make a real difference.

• Redirect your salary on payday. The earlier your pay lands in the offset, the more days it sits there reducing your interest before bills go out. Even a few extra days each month adds up over 30 years.
• Time your lump sums. Tax returns, bonuses, and any windfalls should land in your offset as early as possible. Do not leave them sitting in a regular savings account earning less than your mortgage rate.
• Use it for bill smoothing. Keep all your spending money in the offset until the last moment. Pay bills on their due date, not early. Every day that money sits in the offset, it is working for you.

Example: keeping an average of $30,000 in your offset on a $600,000 loan at 6.5% saves approximately $1,950 per year in interest.

Why this works better when rates are high: at 6.5%, every $10,000 sitting in your offset saves $650 per year versus just $250 per year at 2.5%.

Not all offset accounts are 100% offset. Some are partial, meaning only a percentage of your balance is counted. Check with your lender. And be aware that offset accounts often come with a higher annual fee or rate premium, so they only make sense if you maintain a meaningful balance.

For a deeper look at how these accounts compare to redraw facilities, read our detailed comparison of offset vs redraw accounts.

Offset vs Redraw: Which One Should You Be Using?

Both mortgage offset and redraw reduce your interest on the daily balance. But the structural and tax differences matter, especially if your property might become an investment one day.

For investors or anyone who might convert their home to a rental later, offset is generally the safer choice. Redraw can create capital gains tax complications if the loan purpose changes.

For the full breakdown of offset vs redraw and when each works best, we have a dedicated guide.

Loan Features You Might Be Paying For but Not Using

Many borrowers sit on feature-rich variable loans with offset accounts, redraw facilities, and flexible repayment options. These features come at a cost: typically a rate premium of 0.10% to 0.30% compared to basic variable loans.

If your offset balance is under $5,000 or you never use redraw, you may be paying for features that are not earning their keep.

A 0.20% rate reduction on a $500,000 loan saves approximately $1,000 per year in interest. That is real money for simply switching to a no-frills product.

The thought process is straightforward. Add up the annual fee plus the cost of the rate premium. Compare that to the interest you are actually saving through offset or redraw. If the features are not covering their cost, a basic variable loan could be the smarter option.

This is not a blanket recommendation. It is a conversation worth having with your broker, who can compare basic versus featured loans across 40 or more lenders rather than just one bank's options.

Review Your Rate (Because Loyalty Doesn’t Pay)

Existing borrowers often pay higher rates than new customers at the same lender. This is the loyalty tax, and it adds up quickly.

Even a 0.25% rate reduction on a $600,000 loan saves $1,500 per year. Over five years, that is $7,500 you could redirect toward paying off your mortgage early.

Refinancing is not always the answer. Sometimes a simple rate-match request to your current lender is enough. Call them, quote a competitor's rate, and ask what they can do. You would be surprised how often this works, especially when you are looking at strategies for managing your mortgage in a high-rate environment.

If you have not reviewed your loan in 12 months or more, it is worth checking what is available. Not sure if your loan is still working for you? Talk to a Stryve broker who will show you exactly what is available across 40 plus lenders, with full commission transparency.

What If You Genuinely Don’t Have Extra Money Right Now?

Not everyone can throw extra money at their mortgage, and that is okay. These pay off mortgage early tips do not require spare cash.

• Switch to fortnightly payments. It costs nothing and creates one extra monthly payment per year automatically.
• Round up your repayment. If you are paying $2,847 a month, round it to $2,900. That extra $53 per month can save tens of thousands over the loan term at current rates.
• Redirect windfalls. Tax returns, cashback offers, or any unexpected money goes straight into your offset or as an extra repayment.
• Review subscriptions. Not as a guilt trip, but as a practical exercise. Redirecting even $20 to $30 per month toward your loan adds up over decades.

Even one strategy from this list puts you ahead of doing nothing. You do not need to overhaul your finances overnight.

Your Action Plan for This Week

You do not need to do everything at once. Pick one action, do it this week, and you are already ahead.

1. Check your current rate. Compare it to what new borrowers are getting at your lender and across the market.
2. Switch to fortnightly payments. Call your lender and set it up. Takes 10 minutes.
3. Redirect your salary to your offset. If you have one, make sure your pay lands there first.
4. Round up your next repayment. Even to the nearest $50.
5. Run your numbers through the extra repayment calculator. Seeing the savings in black and white makes it real.
6. Book a chat with a broker if you have not reviewed your loan in 12 plus months. A second opinion costs nothing and could save you thousands.

Want the full breakdown? Read our complete guide to paying off your mortgage faster.

This article provides general information only and does not constitute personal financial advice. Consider your own circumstances and seek professional advice before making changes to your home loan.