Extra Repayments Guide
See how extra repayments reduce interest and loan term. Learn the best strategies and common mistakes in Australia.
Extra Repayments: How to Cut Years Off Your Mortgage
Even small extra repayments can create outsized savings — because you’re reducing principal earlier.
Use the calculator:
- Tool: Home Loan Repayment Calculator
- Fill "Extra repayment per period"
The 3 most effective extra repayment strategies
- Round your repayment up (e.g., +$50 or +$100 each period)
- Add a fixed extra amount (e.g., +$200 fortnightly)
- Use windfalls (tax return, bonus) as lump-sum reductions (if supported)
The biggest mistake
Paying extra but keeping “lifestyle debt” (credit cards, car loan) high. Kill high-interest debt first if relevant.
Extra repayments vs offset
If you need access to the money later, consider offset first. If you want a “set-and-forget” payoff plan, extra repayments can be stronger.
Next: Offset account guide → Offset account explained
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