10 Expert-Backed Ways to Pay Off Mortgage Faster

1. Why Paying Off Your Mortgage Faster Matters

A mortgage is often the most significant financial commitment of your life. While it’s designed to be repaid over 25 to 30 years, according to ABS data, over 60% of mortgage holders never make extra repayments.

Here’s the reality:
On a $600,000 loan at 6.2% interest over 30 years, you could pay over $700,000 in interest alone.

That’s money going straight to the bank, not into your future.

What You Gain by Paying It Off Sooner:

• Tens (or hundreds) of thousands saved in interest
• Increased equity to use for investment or renovations
• Reduced financial stress and more lifestyle freedom
• Protection against interest rate rises or income changes

And the best part? You don’t have to earn more to get ahead. You just need a better mortgage strategy, and we’re here to give you that.

Let’s start with the offset account, one of the most potent but underused tools.

Stryve Finance provides you to calculate your loan repayment with our tools.

2. Use an Offset Account the Right Way

An offset account is one of the most powerful tools available to Australian borrowers, but many homeowners either underutilise it or misunderstand how it works.

What Is an Offset Account?

It’s a transaction account linked to your home loan. The money in your offset doesn’t earn interest; instead, it reduces the interest charged on your mortgage.

Here’s how:
If you have a $500,000 home loan and $20,000 in your offset account, the bank only charges interest on $480,000.

Interest is calculated daily, so even keeping funds in the offset account for a few days a month matters. Even a balance of $10,000 in your offset account could reduce your loan interest by over $15,000 across 10 years.

Smart Offset Account Strategies:

• Deposit your salary directly into your offset account
• Use a credit card for monthly expenses (paid off in full) to keep more cash in offset longer
• Consolidate savings into the offset rather than multiple accounts
• Avoid withdrawing unless absolutely necessary

Real Impact Example:

By optimising their offset use, a homeowner with an average daily offset balance of $25,000 could save over $70,000 in interest and cut 4–5 years off a 30-year loan term.

At Stryve Finance, we can help you choose home loans with an offset account that aligns with your income cycle and savings habits.

3. Switch to Fortnightly or Weekly Repayments

One of the easiest ways to get ahead on your home loan without feeling a major financial pinch is to change how often you repay, not just how much.

Most Australians default to monthly repayments, but switching to fortnightly or weekly can help you make one full extra repayment every year without even noticing.

Here’s the Math:

Let’s say your monthly repayment is $3,000.

If you switch to $1,500 fortnightly payments, you’ll make:
26 payments/year × $1,500 = $39,000/year

That’s $3,000 more than if you paid $3,000/month (12 × $3,000 = $36,000/year). That’s a full extra repayment annually without needing to “find” more money.

Long-Term Impact:

Even slight differences compound over time.

• For a $600,000 loan over 30 years at 6%, switching to fortnightly payments could cut up to 4–5 years off your loan
• You could also save over $100,000 in interest

How to Get Started:

• Contact your lender and request a change to fortnightly or weekly repayments
• Align your payments with your pay cycle to keep budgeting smooth
• Use Stryve Finance’s mortgage checkup to model your potential savings

This small switch can save you over $100,000 and reduce your loan term by up to 5 years without paying more monthly.

4. Make Lump Sum Contributions Early

Timing is everything when it comes to your mortgage. While it might seem like you need large amounts to make a difference, even modest lump sum contributions, especially in the early years of your loan, can significantly reduce both your loan term and total interest paid.

Why Early Payments Matter Most

Most repayments go toward interest, not the loan principal, in the first 5–10 years of your mortgage. That means any extra money you put in during this period directly reduces the interest you’re charged.

The earlier you contribute, the greater the compounding savings.

Real Example:

Imagine a $500,000 loan over 30 years at 6.2%.

If you make a $10,000 lump sum repayment in year 2, and continue making the same monthly repayments:

• You could shave off over 1.5 years from your loan
• And save around $35,000–$40,000 in interest

Sources of Lump Sums:

• Tax refunds
• Work bonuses or commissions
• Inheritance or family gifts
• Selling unused assets (car, secondhand goods, crypto, etc.)
• Business or side hustle profits

Some clients refinance and redirect equity toward improvements, using a renovation loan to finance your home upgrades without adding years to the loan term.

At Stryve Finance, we help clients map contribution strategies tailored to their income and life stage.

5. Refinance to a Lower Interest Rate

Refinancing your home loan is one of the most overlooked but high-impact ways to repay your mortgage faster. If you’ve had the same lender for more than 2 years, there’s a good chance you’re paying more than you need to.

Why Refinance?

Lenders often reserve the best rates for new customers, meaning loyal borrowers get stuck with outdated, higher interest rates. By refinancing, you can:

• Reduce your interest rate by 0.5%–1.5%
• Access better features (like offset accounts or flexible repayments)
• Cut years off your loan and save tens of thousands in interest

Example: Real Savings from Refinancing

You have a $600,000 loan at 6.5% over 30 years. Your monthly repayment is about $3,792.
If you refinance to 5.5%, your new monthly repayment drops to $3,407. That’s:

• $385/month saved
• Over $138,000 in interest saved if you keep the same payment schedule

Better yet, if you continue repaying at the old rate of $3,792, you could reduce your loan by up to 6 years.

What to Watch Out For:

• Exit fees or break costs on fixed-rate loans
• Loan setup and valuation fees
• Keeping features you actually use (like offset or redraw)

If you haven’t reviewed your interest rate in the last 18–24 months, it may be time to consider refinancing your mortgage to save money and fast-track your loan payoff.

6. Consider Splitting Your Loan

When it comes to mortgages, there’s no one-size-fits-all approach, especially when interest rates fluctuate. That’s where a split loan strategy can give you the best of both worlds: certainty and flexibility.

What Is a Split Loan?

A split loan divides your home loan into two portions:

• Fixed rate portion: Offers interest rate certainty for a set period
• Variable rate portion: Lets you make extra repayments, access offset/redraw, and benefit if rates fall

You control how much your loan is fixed vs. variable (e.g., 50/50, 60/40, etc.).

Why Consider Splitting?

• Lock in stability on part of your loan, so your repayments are predictable
• Retain flexibility to pay off the variable portion faster
• Mitigate risk during rising rate cycles
• Leverage the offset account for savings on the variable side

Example Scenario:

Let’s say you split a $500,000 loan:

• $250,000 fixed at 5.9%
• $250,000 variable at 6.3% with an offset account

This setup allows you to:

• Sleep easy knowing part of your loan won’t rise unexpectedly
• Still make extra repayments and use the offset to reduce interest on the variable portion

Is Splitting Right for You?

A split loan works well if:

• You want stability in repayments (e.g., young family, budgeting tightly)
• You plan to make extra repayments or deposit savings into an offset account
• You’re unsure where rates are headed and want a balanced approach

At Stryve Finance, we help you customise the proper split ratio based on your income, lifestyle, and loan goals. We’ll also show you how to avoid hidden traps, like break costs on the fixed portion or loss of redraw features.

7. Avoid Interest-Only Loans

Interest-only loans can initially seem attractive, especially if you’re trying to temporarily lower your repayments. Still, they often lead borrowers further away from the goal of paying off their mortgage faster.

What Is an Interest-Only Loan?

With an interest-only loan, you pay only the interest for a set period (typically 1–5 years). During this time, your loan balance doesn’t reduce at all.
That means you’re:

• Not building equity
• Not lowering your principal
• Paying more interest over the life of the loan

It’s like renting your house from the bank, while still owning the debt.

What Happens After the Interest-Only Period Ends?

• Your repayments jump significantly once the principal repayment phase begins
• You may need to restructure your loan or refinance again
• If property values fall, you risk having little or no equity

Long-Term Costs Example:

On a $600,000 loan at 6.2%:

• Interest-only for 5 years: repayments ≈ $3,100/month
• After 5 years: switch to principal + interest ≈ $4,500/month (for 25 years left)

And over time? You could pay $50,000–$100,000+ more in total interest compared to a standard principal + interest loan.

When It Might Make Sense:

• For short-term investors needing to preserve cash flow
• As part of a broader property investment strategy
• Only if you have a clear plan to pay down the principal soon after

But for most homebuyers looking to pay off their mortgage faster, it’s best to avoid interest-only loans altogether.

At Stryve Finance, we help you structure your loan to match your financial goals, not just short-term comfort. We’ll walk you through better alternatives that build real equity and protect your financial future.

8. Use Extra Income Smartly

Every dollar you earn beyond your regular income is an opportunity to accelerate your mortgage payoff, but only if you use it wisely.

Whether it’s a work bonus, tax refund, side hustle earnings, or even the money you save from cutting out a few non-essentials, applying these funds toward your loan can deliver massive long-term savings.

Why It Works

Extra payments go directly toward your principal, which:

• Reduces the interest calculated daily
• Shortens your loan term
• Builds equity faster, which can unlock refinancing or investment options

An extra $100 monthly can save you over $25,000 in interest on a standard loan.

Smart Sources of Extra Income:

• Annual bonuses or commissions
• Tax returns
• Freelance or side hustle income
• Rent from a spare room (e.g., Airbnb or long-term tenant)
• Selling unused items or vehicles
• Dividend or investment profits

Simple Strategy: The 50/30/20 Windfall Rule

When you get unexpected income, try allocating:

• 50% of your mortgage
• 30% to savings
• 20% for lifestyle or fun

This way, you’re rewarding yourself without missing the chance to get ahead financially.

Automate Your Progress:

Set up a dedicated bank account or automate recurring weekly or monthly “top-up” transfers to your home loan or offset account. You’ll build a faster payoff habit without relying on willpower.

At Stryve Finance, we help clients build custom repayment strategies that match their income cycles and lifestyle. Our mortgage health check can show you how small changes today create significant savings tomorrow.

9. Automate Your Financial Discipline

You don’t need superhuman willpower to pay your mortgage faster; you just need automation. Automating your payments and savings helps you stay consistent, avoid temptation, and ensure you hit your goals even when life gets busy. It’s one of the most reliable mortgage payoff strategies, shown to reduce loan terms by several years when used consistently.

Why Automation Works

• Removes emotional decision-making
• Reduces the risk of skipping or forgetting repayments
• Builds strong financial habits effortlessly
• Helps you stay on track without having to think about it every month

You don’t have to be disciplined forever, just set up a system that is.

What You Can Automate:

• Extra mortgage repayments: set a recurring transfer (e.g., $150/week)
• Offset account contributions: direct a portion of each paycheck to her
• Savings for lump sum repayments: create a “home loan boost” savings account
• Bill smoothing: eliminate unexpected costs that might disrupt your repayment plan

Use Your Bank or Broker Tools

Most Australian banks offer:

• Automatic repayment scheduling
• Budgeting and goal-setting tools within their apps
• Push notifications and reminders for low balances or high spending

At Stryve Finance, we help our clients implement automation with:

• Offset-linked payment structures
• Strategic repayment scheduling
• Proactive reminders to review your loan every 12–18 months

10. Partner With a Mortgage Broker Who Has Your Back

Even with all the tools and tips at your fingertips, navigating the home loan landscape alone can be overwhelming. That’s where partnering with the right mortgage broker can make all the difference, especially if your goal is to pay off your mortgage faster.

At Stryve, we offer personalised mortgage options for self-employed Australians who want more flexibility in managing repayments.

Why Use a Mortgage Broker (Instead of Going Direct to a Bank)?

1. Access to 30+ lenders: not just one bank’s products
2. Tailored strategies: structured around your income, lifestyle, and goals
3. Unbiased advice: our job is to get the best result for you, not the bank
4. Loan health checks: We regularly review your loan to uncover better deals
5. Fast approvals: we handle the paperwork, follow-ups, and negotiations

Real Value for You

We’ll help you:

• Refinance to a better interest rate
• Choose the proper offset or split loan setup
• Build a strategy to make extra repayments and reduce interest
• Avoid high ongoing fees, limited redraw options, or lock-in clauses that can slow your progress
• Automate your progress toward financial freedom

Think of us as your long-term wealth-building partner, not just your loan facilitator.

Ready to Own Your Home Sooner?

Whether you’re buying, refinancing, or reviewing your current mortgage, our expert team is ready to help.

👉 Book your free mortgage health check today

📞 Call 1300 202 285 Stryve Finance

📧 Or email us at info@stryve.com.au

Let’s build a plan that works for you and get you one step closer to mortgage freedom.