How Do I Pay Off My Mortgage Faster? Whilst there are many articles written about secrets of paying off a mortgage sooner, it really comes down to paying more and paying as early and as frequently as possible. Pay early Most Mortgages are structured so that you pay off most of the interest in the early years. If you are serious about wanting to reduce the interest you pay on your Home Loan, you'll act now. A single extra payment of $100 paid at the start of the loan will save you around $1,615 in interest over the term. Get rid of car loans and credit card debt You're generally paying a higher interest rate on small loans (e.g. a car) and your credit cards so it makes sense to clear those debts first. Minimise your credit card usage and then tackle your Mortgage. Make sure you're paying off the right Mortgage When you entered the Mortgage market, you might not have been as well informed as you are now. Or the market might not have been as competitive. Stay in close contact with your Mortgage Australia Broker. They can let you know if there is a new Home Loan product that will save you money over the term of the Mortgage. Flexible Mortgages Most debt-retirement strategies depend on you being able to pay off more of your Mortgage sooner. Read the fine print or talk to your Mortgage Australia Broker to see if you have the flexibility you need to reduce your interest charges. Offset Home Loans, All-In-One Loans and Lines of Credit These three types of loans all have one thing in common, they allow you to use your income to reduce the interest you are being charged. How effective this is for you is how much and for how long your money is sitting in the loan or offset account. In essence it once again comes down to paying extra and paying more often, because as soon as you take that money out the benefit is gone. Pay more and pay often Assuming you have a Mortgage that lets you pay extra, you should pay more and pay often. The interest charged on a $300,000 Home Loan at a rate of 7.15% over 30 years with monthly repayments is over $420,000. By paying off an additional $50 a month, you'll reduce the interest bill by $39,000 and your loan term by 2 years and 4 months. You could look at making repayments weekly or fortnightly rather than monthly. Over 30 years the savings add up. To learn more, talk to Mortgage Australia today.