The Ultimate Guide to Paying Off Your Mortgage Faster in Australia

I'm sharing five strategies to help you pay off your mortgage faster. We all dream of the day when we're mortgage-free, and these tips will help you get there sooner than you thought possible. Whether you're just starting out with your mortgage or have been paying it down for years, these tips will help you accelerate your progress and save thousands of dollars in interest payments. From making extra payments to reinvesting, we'll cover everything you need to know to pay off your mortgage faster and achieve financial freedom. I'll also talk about whether you SHOULD pay off your mortgage sooner or whether you should stay liquid.
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[@geneg3776]

The thing I have trouble with is working out how much to leave in your offset account and how much to make in extra payments. Also considering having the extra money as a buffer to make repayments when the interest rates goes up. Would love to hear any suggestions.

[@Anearthchild]

Hi Greg, broker here, an offset account is now redundant as most loans offer a free redraw facility. Offset accounts cost you an annual (or monthly fee), so you can save around $12k in fees just by ditching this. We don't recommend offset accounts unless there is a specific reason you want one, as they normally come at a higher interest rate as well. So just use a basic account with redraw which gives you the same advantages but without the fees and might be 20-30 basis points cheaper. Redraw is any money paid over your minimum payments. It sits in a little sub pocket in your home loan until you tell the bank to pay it into your loan. Redraw is available for you to take out (redraw) if you need to just make a normal bank transfer from your home loan account. The benefit of using redraw to stash your cash over offset, is that you are less likely to take it out of mortgage (no debit card). You save the offset account fees and you get a lower rate.

[@IFarmJelly]

damn, wish i knew this @@Anearthchild

[@chuckdaman1509]

Forget paying fortnightly, or even weekly. Pay daily.

[@lukewiles1]

I'd prefer to pay hourly if possible.

[@chuckdaman1509]

@@lukewiles1 Interest is calculated daily. Do the sums and you'll see what I mean.

[@marcusaurelius6012]

I hear you mate. Every day, regardless l throw $$$ into super and mortgage

[@redoctober00]

Or just pay more each fortnight ..

[@chuckdaman1509]

@@lukewiles1 Problem is though...there is no banking facility available that will allow you to pay daily. If I am wrong, please tell me what ones there are...

[@chadmercer3995]

Solid tips, Luke. Really appreciate the vids. Keep them coming!

[@Peter-uf1hd]

Pay weekly, if you can, and any additional pay increases add it to the mortgage I pump way more each week than needed onto my loan which started I 2004 and will now have paid off March 2025 on my 30 yr loan

[@method341]

​@@jonokerr5094mate, stay in school

[@christianthomas4758]

@@jonokerr5094you’re not very smart are you? 😂

[@SophieLoschy]

Money actually grow on trees but only on trees that was planted by you!! These tress are referred to as investments. How you diversify your investment portfolio matters

[@NoahNollens]

The BIGGEST LIE You've Been Told About Money is that it doesn't grow on TREES!! 😆

[@tahirisaid2693]

Diversification is the key. My portfolio is well diversified with the help of a financial adviser. This helps me make more than +400% monthly on my investments.

[@PajinakStanovska]

I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation??

[@keskads8985]

Good one , can you please send us a link for a repayment calculator? I am looking for one which lets me calculate with additional payments

[@peekhub7446]

Great video! Question does a redraw account work the same as a offset?

[@lukewiles1]

Essentially yes, they give you access to cash but in different ways. Offset is a separate cash bank account where you can park spare funds. Redraw means increasing the loan amount to access more funds

[@snedzy1506]

Good work champion. Keep kicking goals

[@samirbasnet9640]

Just wondering is paying repayment weekly is better than fortnightly?

[@dtd1986]

Yes. You’ll pay less interest over the life of the loan if you stick to weekly repayments. It’s not much of a difference to fortnightly payments but every little bit counts.

[@ihn2023]

What is the difference between offset and redraw?

[@lukewiles1]

Offset is highly liquid allow you to push/pull the funds at any time from your bank account. Redraw typically means you need to put in a request to the bank to access the funds required

[@RaulNigli]

Offset is your money. Redraw is the banks money. You'll be taking out a new loan via redraw. It also has major tax implications if not used correctly.

[@boingoctran273]

Very useful! Thank you so much

[@susmusmanoj112]

Luke .. negative hearing . Eg if I earn 60k and partner earns 90k .and house is negatively geared .. now when we file tax whose income Is the negative gearing aimed to ?

[@lukewiles1]

depends on the property's title - ie who owns the investment

[@akilaliyanage]

@lukewiles1 mate, have you done the calculation with fortnightly payments? If you just switch to fortnight payments it doesn't do anything. But if you divide the monthly payment by 2 and pay fortnightly yeah. I'm sure you do that way but not sure if I heard it in the video. Thanks for the regular content

[@lukewiles1]

Yes we pay fortnightly for our own home and monthly for investments - thanks mate!

[@coolvideos8019]

Would it be better to pay weekly? Or biweekly? Which one saves more money on interest?

[@akilaliyanage]

@@coolvideos8019 biweekly, half of your monthly payment. By doing this you pay an extra month which is 13 months in each year. If you pay a quarter of your monthly payment weekly, you still pay for 13 months. So there isn’t much gain.

[@aswinraghuraman7842]

We always pay interest for the remaining principal loan amount. So when we make it weekly, you are actually reducing the small interest that we pay bank for each month compared to monthly repayments.

[@lee.j7077]

Hi can we use the Heloc system in Australia?thanks

[@thediddly]

Yes its basically the same as using interest only and paying extra, or interest only with 100% offset. Mainly only works for IP from lenders. Haven't seen a IO ppor loan with 100% offset but i could be wrong. The key is paying extra in IO not P&I. It doesn't work with P&I due to interest front loading as debt is amortised, vs IO which is calculated as simple interest, the best type of interest. Look it up please.

[@timtam8780]

Bought in 2022, going to be 100% offset in 2028. Let's gooooo

[@redoctober00]

I wish i could get 7% or higher return

[@ryanredfern1272]

This is basic google advice

[@et5712]

@lukewiles1 Hi mate I just came across the channel and subbed 👍 just want to ask I’ve been making extra repayments and I never knew it didn’t get absorbed into the loan but was just building as an available balance for redraw purpose. Apparently it worked to reduce interest but that’s not what I wanted. I believe if it went to the principal being absorbed in the loan amount I would have been WAAAAY better off. Can you confirm that I’m thinking correctly? Sorry for the amateur question. Cheers.

[@et5712]

Well after some maths it appears my repayments did work as principal payments but the bank couldn’t just tell me that exactly….. typical word twister from them to confuse me is all.