Paying off a mortgage can feel like a never-ending task. Yes, every payment counts, but it can seem like it will take forever to even make a dent. TRACY KEAREY, Director of Mortgage Advice Bureau, Brisbane explains some simple ways you can increase the amount you pay off so that you can own your home sooner.

Reducing the principle on your mortgage as quickly as you can means paying less interest, so your future payments are going even further towards reducing that principle.

To find an ideal balance between the extra repayments you can afford to make and the time this will shave off your mortgage term, use our mortgage calculator

As you can see by using the calculator – by just paying an extra $400 a month ($100 per week) it can take years off your original loan term.

Here’s five simple ways to increase your mortgage repayments.

Ignore the bank

Well, sort of. Don’t pay any attention to the amount that you are told is the minimum repayment, as long as you pay more. Work out the most you can afford to pay, think of this as your minimum repayment, budget for it and stick to it.

Treat yourself

Think of every step you take towards reaching your goal of owning your property outright as a way of treating yourself. Sure, an expensive bottle of wine is nice, but doesn’t taking a year off your loan taste pretty sweet too?

Every single increase to your income, no matter how small, should be channelled into the debts that are incurring the highest interest. If this is your mortgage, send it there. Do the same with your tax returns, any bonuses at work and even cash gifts.

Track your spending

Download an app to track what you are spending your money on, and trim where necessary, channelling any savings you make into your mortgage payments.

Think of all those little things you don’t really notice you are spending your money on.

In one week, that extra coffee, a sandwich from the cafe instead of one you have made yourself, that round of drinks you probably shouldn’t have shouted on Friday night and getting your nails done on Saturday add up to $150. Over a month, these can all add up to $600.

But did you know, increasing a monthly repayment from $2,400 to $3,000 more than 10 years can be trimmed off the term of a $500,000 loan. Now how much do you really need that coffee?

Keep your eyes on the prize

Watch the forecast term on your mortgage – seeing it go down will motivate you to work even harder.

Talk to an expert

Talking to your finance broker about refinancing options could reveal a way to pay down your debt sooner even without increasing repayments.

A finance broker will be able to look into whether you may get a better interest rate or lower fees with another lender, or even with your own, and will be able to help minimise any refinancing costs.

This is especially important each time your goals or your financial circumstances change. If you’re earning more than when you took out your loan, you have paid off a personal loan or a credit card since that time, or your property’s value has risen, your finance broker may be able to negotiate a far better deal than the one you are on.

For example, if your finance broker negotiated your interest rate down from 3.8% to 2.8% on a $500,000 loan, on which you are making $2,584 monthly repayments, your loan term could drop from just over 25 years to 21 years.


If you need assistance applying for a loan or would like to discuss refinancing a loan please give me a call on 0417 738 469.

Tracy Kearey is an award winning Finance and Mortgage Broker with 23 years experience. She has access to over 40+ lenders and offers her clients access to extensive range of loan products and services tailored to individual borrowing needs. If you need assistance with your lending needs you can send Tracy an email or give her a call on M: 0417 738 469. You might also like to connect with Tracy on Facebook

Share This
Finance Education 5 Simple Ways to Increase Your Loan Repayments