You don’t necessarily need to make huge changes to pay your mortgage off sooner. A few smart decisions about repayments and loan structure can make a real difference over time. Here are four strategies worth considering.
Small amounts now can make a big difference later.
Your usual mortgage repayment covers the interest charged and pays down some principal. When you pay extra, that additional amount generally reduces the principal. The next time interest is calculated, it is based on a smaller outstanding balance. Over time, that can mean less interest and a faster payoff. Starting earlier gives those savings more time to build.
A lower rate does not have to mean a lower repayment.
If your interest rate drops at refix time, the minimum repayment may fall too. But if you can comfortably keep paying the amount you were paying before, more of each payment can go towards the principal. You are already used to that amount leaving your account, so there may be no change to your day-to-day budget.
A one-off payment can have a lasting impact.
A work bonus, inheritance or spare savings could help reduce your mortgage balance. Once the principal is lower, future interest is calculated on less debt. If you are on a fixed rate, the end of your fixed term can be a useful time to consider a lump sum.
Your mortgage setup can make a difference.
An offset mortgage may let eligible savings reduce the loan balance used to calculate interest, without using up those savings. A revolving credit facility can let income and spare funds reduce interest while they remain in the account, although redraw access requires discipline. A split mortgage can combine the certainty of a fixed portion with the flexibility of a floating portion.
If the required repayment is $872 a fortnight, paying $900 instead can gradually reduce principal faster. Check your bank’s limits first.
Paying half a monthly repayment every fortnight adds up to 26 half-payments, or 13 monthly equivalents, each year. This only helps because you pay more overall; a simple frequency switch with equivalent annual payments may not produce the same result.
There isn’t one approach that suits everyone. Your current fixed terms, bank rules, savings, cashflow and plans all matter. Your mortgage adviser can help check what you’re allowed to repay, compare structures, and make sure the strategy is realistic for your situation.
You might not need to change banks or restructure anything. Sometimes the simplest option is to keep paying a little more than the minimum.
Talk to Traction. We can look at your current mortgage, check what flexibility you have, and help you work out a plan that fits your goals and your budget.
General information only, not personalised financial advice. Interest rates can change throughout your mortgage, and actual savings depend on your loan terms and repayment behaviour. Fixed-rate extra repayments may be limited or incur charges. Check with your lender or mortgage adviser before changing repayments or loan structure.
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© 2026 Traction Financial Services.
General information only. Personalised advice depends on your circumstances.
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