Reading Time: 1 Minute

Many of us have a massive financial burden in our lives, one that feels like an anchor around our finances… and that is our home loan!

So how can you smash it out as fast as possible? In this video, I’ll show you 6 ways without needing a 2nd job or even increasing your income.


Hey, have you ever wondered how can we smash out the mortgage as fast as possible?

Well, luckily, you’ve got me.

And I’ll show you 6 quick and easy ways to paydown your mortgage quicker, without changing jobs or increasing your income.

Number 1 – leave all your savings in a mortgage offset account.

It’s crazy how many people have separate savings accounts and an offset account.

A savings account earns what, 1.5-1.7%?

An offset account offsets the interest on your mortgage, typically around 3%.

That means you are missing out on the difference.

By way of an example, let’s say you have a $500,000 mortgage, and $100,000 in savings.

If you leave it in a savings account at 1.5%, you earn $1,500.

By leaving it in an offset account at 3%, you’re saving $3,000.

That’s a difference of $1,500 right there.

Oh and a bonus tip – change the bank account your salary gets paid into, into your offset account.

Number 2 – round up your repayments.

What I mean by this is let’s say you have a $500,000 P+I loan at 3%, your monthly repayments come to $2,108.

If you can round this up and pay $2,200 per month, you’ve saved an extra $17.5k over the life of the loan.

If you can round it up to $2,300, that’s an extra $33.9k.

Round up to say $2,500 or about an extra $100 per week, that’s a saving of $60.2k over the life of the loan.

Number 3 – make repayments more frequently.

This is a simple mathematical trick and works because loan interest is calculated daily.

So it makes sense that the more frequent your repayments are, the more interest you potentially save.

When you sign up to a mortgage the default repayment period is monthly.

Coming back to our earlier example, $2,108 per month is $1,054 per fortnight.

But instead of making 12 monthly repayments, we are now making 26 fortnightly repayments or an extra month’s worth.

This means a saving of over $34k over the life of the loan, just by changing the frequency of repayments!

Number 4 – any bonus is a bonus.

By this I mean to chuck any lump-sum contributions like a work bonus or a tax refund into your mortgage.

As we know now – loan interest is calculated daily, so if we can smash it down as much as possible as early as possible, means that we’ll be paying less interest over the life of the loan.

Number 5 – ask for a lower rate with your current lender.

It can be as easy as calling up your lender and asking for a lower rate.

I just did this with one of my loans where the rate was in the high 3%…

So I scanned the offerings of a competitor which had an offering of low 3%, called up my existing lender, quoted the offering and said to either match that rate or I’m walking.

All up the conversation lasted about 5 minutes and I’ve shaved half a percent off my loans.

This might not sound like much, but it equates to around a couple of hundred off per month or around $36k over the life of the loan.

Number 6 – refinance your loan.

If your existing lender isn’t willing to budge, just walk – if they’re not willing to do the right thing by you, why should you do the right thing by them?

Have a think about some of the smaller lenders who often offer a simple no frills loan package for a much cheaper rate under 3%,

I even saw some offering under 2% intro rates – ridiculous!

Have a look on or to see which one might work for you.

There you go guys, 6 very quick and easy ways to paydown your mortgage just by tweaking how you pay – no need for a 2nd job, no need for a payrise.

Minimal effort, maximum return!

Did you enjoy this post? If yes, put your email in and click on the little “subscribe” button at the top right. You’ll also receive a free copy of the Complete Aussie FIRE e-book – The Ultimate Guide to Financial Independence for Australians.

Or you can follow me here:

On Twitter

On Facebook

On Pinterest

On Instagram


Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: