Work, family, friends – life is a constant whirlwind, and before we know it, yet another year has flown past. During our busy schedules and endless responsibilities, we diligently make our mortgage payments, ensuring the security of our homes. However, have you ever paused to consider the possibility of paying off your home loan sooner? It's a question that often gets lost in the chaos of daily life, but the rewards may be significant.

Paying off your mortgage ahead of schedule not only brings numerous financial benefits but also offers a sense of liberation and peace of mind.

In this article, we’ll explore ways on how you could repay your home loan faster, so you could enjoy financial freedom sooner.

Should you pay off your mortgage early?

For most people, the answer is a resounding yes! If you have the means to contribute more repayments to your home loan, it could be an advantage to you. Paying off your mortgage early can save you a significant amount of money in the long run. In fact, you can check out our extra repayments calculator, which could help you determine the potential savings that may come with paying extra on your mortgage.

Why should I pay off my home loan early?

Here are just a few of the many reasons why it’s generally an advantage to pay off your home loan faster:

To become mortgage-free

Paying off your home’s mortgage early allows you to achieve the ultimate financial milestone—being mortgage-free. Owning your home outright not only provides a sense of security but also grants you the freedom to allocate your income towards other important aspects of your life.

Ultimately, when you eliminate this significant debt, you could experience a greater level of financial stability and freedom.

To pay less interest

One of the most enticing advantages of paying extra on your mortgage is the opportunity to reduce the overall interest paid over the life of the loan. When you decrease the loan term by making extra repayments or accelerating your regular payments, you effectively minimise the time that interest has to accumulate. This reduction in interest expenses could lead to substantial savings.

To build equity faster

By knowing how to repay your home loan faster, you could have the power to build equity in your home at a much faster rate.

Equity represents the portion of your home that you truly own. As you pay down your mortgage principal, the equity in your home increases. This increased equity could provide you with financial flexibility and open possibilities for future endeavours. Whether it's funding home improvements, starting a business, or investing in other ventures, having a higher equity stake in your home may allow you to leverage your assets to your advantage.

Additionally, building equity faster could also serve as a safety net during unforeseen circumstances.

How to repay home loan faster

Inspired to repay your home loan faster? Consider these tips which could help you pay off your home loan faster and expedite your journey towards mortgage freedom:

Pay fortnightly, rather than monthly

One of the best tips which could help accelerate your mortgage repayment is to consider switching to weekly or fortnightly payments, instead of monthly instalments (subject to your loan eligibility). By opting for weekly or fortnightly payments, you could significantly decrease the interest that accrues over the life of the loan. We recommend speaking to our Lending Specialists on how payment frequency could impact the life of your home loan.

Consider putting additional funds towards the principal

By directing additional money towards your home loan and paying down the principal, you might find that in the long term, you could potentially reduce the overall interest amount you need to pay.

Use your offset

If your home loan has an offset account, it’s time to start making it work for you. Offset accounts work as a transaction/savings account linked to your home loan. The money in that account ‘offsets’ daily against the balance of your loan. So, it reduces the interest you need to pay because interest is only charged on your net balance (i.e. your overall loan balance minus your offset account balance). In other words, the loan ‘thinks’ you’ve paid that money off your loan already, reducing the interest charged accordingly.

Refinance your home loan

Consider talking to a reputable home loan broker or your bank about how to refinance your home loan. You may find you’re eligible for a lower rate loan or a revised loan term. While a shorter loan term will mean higher repayments, you’ll likely spend less on interest over the life of the loan.

Put it away

Consider any bonus, tax refund or inheritance as ‘heading straight to the pool room’. If you can shift your perspective from seeing these lump sums as a chance to splurge, putting them straight on your home loan could help to cut costs in the long term.

To find out more about the potential savings of making additional repayments on your mortgage, check out our extra repayment calculator.

Pay extra on your mortgage

Whenever possible, make additional lump sum payments towards your mortgage. Even small amounts could make a substantial difference over time. The key is to consistently allocate any extra funds towards your principal to reduce the interest.

To determine the impact of making lump sum payments on your mortgage, use our lump sum calculator to learn more.

Grab a latte and go

Here's a simple yet effective tactic - every time you buy a coffee (or lunch or drink), transfer the same amount into your home loan. While it may seem small at the time, by the end of the year, these small sacrifices could add up to a significant reduction in your mortgage balance.

Whichever you choose, you’ll find paying off a bit more or reducing the length of your loan may help to cut down its cost. If you’re interested in refinancing or talking to us about how you can reduce the cost of your home loan, check out our home loan FAQs or contact us today to find out more about our competitive home loan offers.


As the information on this page is of a general nature and has been prepared without considering your objectives, financial situation or needs, before acting on the information, consider its appropriateness to your circumstances.

You should seek independent, professional tax advice before making any decision based on this information.

Loans are subject to approval. Normal lending criteria, terms and conditions and fees and charges apply. Mortgage insurance is required for home loans over 80% LVR and is subject to approval.

Qudos Mutual Limited trading as Qudos Bank ABN 53 087 650 557 AFSL/Australian Credit Licence 238 305.

Published July 2017,updated November 2023