Want to Pay Off Your Mortgage Faster?

Many Australians dream of paying off their home loan early. The good news? Choosing the right loan features can help you get there faster. With so many options—like offset accounts, extra repayments, and redraw facilities—it can be confusing. So let’s break it down and show you what really helps.

1. Get a Loan with an Offset Account

An offset account is a smart way to reduce how much interest you pay.

• It’s a savings or everyday account linked to your mortgage.
  
• The money in it “offsets” your loan balance, so you only pay interest on the difference.
  

Example:
If you owe $500,000 and have $30,000 in your offset account, you’ll only pay interest on $470,000. This can save you thousands over time and help you pay off your loan faster.

2. Make Extra Repayments When You Can

Some loans let you make extra payments with no extra fees. This is a great feature to have.

• Extra payments reduce your loan balance (called the principal).
  
• A smaller loan means less interest—and you’ll pay it off quicker.
  

Even small amounts help!
For example, an extra $50 a week can save you thousands over the life of your loan.

3. Look for a Redraw Facility

A redraw facility lets you take out the extra money you’ve paid into your loan if you need it later.

• You can make big repayments now, but still access that money later in an emergency.
  
• It’s a good safety net without slowing down your loan progress.
  

Just check for any redraw fees or conditions—they vary by lender.

4. Choose Flexible Repayment Options

Flexibility helps you stay ahead. Look for loans that offer:

• Fortnightly repayments – You’ll make 26 payments per year instead of 12, which means you’re paying more off the loan each year.
  
• Split loans – Part fixed, part variable. You get the stability of fixed rates, and the freedom to make extra payments on the variable part.
  

These features give you more control and help you pay off the loan sooner.

5. Think Carefully Before Refinancing

Refinancing can help you get a lower rate or better features—but it’s important to look at the costs too.

Ask yourself:

• Will I have to pay fees to leave my current loan?
  
• What are the upfront costs of the new loan?
  
• Will I actually save money in the long run?
  

If the benefits are bigger than the costs, refinancing could be a smart move.

The Bottom Line: Choose Features That Work for You

Choosing the right mortgage features is about finding options that align with your financial goals. Whether it’s an offset account, extra repayment flexibility, or a redraw facility, these features can make a significant difference in how quickly you pay off your home loan.

At Mortagage Brokers Pakenham, I’m here to help you navigate these choices and tailor a loan that suits your needs. Ready to explore your options?

Schedule an appointment today, and let’s create a plan to get you mortgage-free faster.