Mortgage-Busting Strategies to Help You Get Ahead

With interest rates still sitting above pre-pandemic levels and cost-of-living pressures rising, many Australian mortgage holders are asking the same question: How can I pay off my home loan faster and ease the financial pressure?

The good news? There are a number of smart, practical strategies that could help you reduce interest, pay off your mortgage sooner, and even build greater financial resilience. Here are some key mortgage-busting ideas to consider in 2025.

1. Make Fortnightly Repayments Instead of Monthly

By switching from monthly to fortnightly repayments, you effectively make one extra repayment each year. This small change can shave years off your loan term and save thousands in interest over time.

2. Put Your Offset Account to Work

An offset account is a powerful tool if used correctly. By keeping your savings in an offset account that’s linked to your mortgage, you reduce the interest charged on your loan balance.

Example: If you owe $500,000 and have $50,000 in your offset, you’ll only be charged interest on $450,000. Be sure your offset is 100% rather than partial, and check whether it’s truly working in your favour.

3. Consider Making Extra Repayments

Even small additional repayments of $50 or $100 a fortnight, can make a big difference over time. Before committing, confirm your loan allows for extra repayments without penalty (most variable-rate loans do, while fixed-rate loans may have limits).

4. Use Lump Sums Wisely

Received a bonus, tax refund, or inheritance? Rather than splurging, consider putting a portion straight onto your mortgage. This can significantly reduce your interest and fast-track your debt repayment.

5. Refinance to a More Competitive Rate

Rates and loan features vary widely between lenders. If it’s been more than 12–24 months since you reviewed your loan, it’s worth comparing options. Many borrowers could save thousands per year by switching to a better deal.

Don’t just look at the rate, consider features like redraw, offset, and fees.

6. Redraw Facility vs Offset: Know the Difference

Redraw lets you access any extra repayments you’ve made which can be handy in emergencies. Offset gives you more flexibility, as your savings reduce interest without being locked into the loan. Depending on your habits and goals, one may suit you better.

7. Avoid Interest-Only Periods (Unless Strategic)

While interest-only loans reduce repayments in the short term, they can lead to higher long-term costs and delayed equity growth. If you're financially stable, opting for principal and interest is usually more cost-effective over time.

8. Review Your Loan Regularly with a Broker

Life changes so should your mortgage. Whether your income has increased, expenses have shifted, or you’re planning renovations, an annual loan health check with your adviser or broker ensures your mortgage still fits your needs.

Paying off your home loan faster doesn’t require drastic lifestyle changes. With a few smart strategies and regular reviews, you can build momentum, reduce your total interest paid, and improve your overall financial flexibility.

At Advice HQ, we help our clients optimise their lending structures, assess refinancing opportunities, and stay on track with their long-term financial goals.

Want to see if your mortgage is still competitive?

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Get in touch today to discuss your options.

Note: This article draws on market insights and publicly available commentary from a range of professional sources. It is provided for general information purposes only and does not constitute personal financial advice. Please speak to your Advice HQ adviser to discuss your individual circumstances.