6 practical ways to pay off your home loan sooner (that actually work)

Most people think paying off a mortgage faster requires extreme budgeting or giving up everything enjoyable.

In reality, the biggest gains usually come from how your loan is structured and how consistently you use it, not from cutting out your morning flat white or becoming a spreadsheet guru.

Here are six practical ways to reduce your home loan.

1. Build a plan you can sustain

The best mortgage strategies are boring — and that’s a good thing.

Rather than making big hairy audacious changes that you probably won’t stick to, aim for a steady surplus that fits your real life. The goal isn’t perfection; it’s consistency.

Small, repeatable savings applied over many years often outperform short bursts of intense discipline that quietly disappear.

2. Get your loan structure right from the start  

This is where many borrowers lose years — before they’ve even made their first repayment.

The right structure gives you flexibility to pay off your loan faster when you’re able, without penalties or friction. That may include things like:

• access to an offset account

• the ability to make extra repayments

• appropriate fixed vs variable splits.

Even disciplined borrowers struggle to get ahead if their loan structure works against them.

3. Treat your offset account as the default place for spare cash

An offset account is one of the most powerful tools available to owner-occupiers - if it’s right for your current situation.

Money held in your offset reduces the balance your interest is calculated on — while still remaining accessible. It’s effectively savings that quietly work for you behind the scenes, every single day.

For many borrowers, simply keeping surplus cash in the offset — rather than spending it or parking it elsewhere — makes a material difference over time.

4. Review your rate and features regularly

Your home loan shouldn’t be a “set and forget” decision.

Rates change. Lender appetite shifts. Features that once made sense may no longer be relevant. A regular review — every year or two — can uncover:

• lower rates

• unnecessary fees

• better-aligned loan features.

Even small changes here can compound into significant savings over the life of the loan.

5. Use a repayment structure to your advantage

How you repay your loan matters almost as much as how much you repay.

Paying fortnightly instead of monthly, making early repayments or building a buffer in your offset can all accelerate progress without requiring major lifestyle changes.

The key is choosing a structure that fits your cash flow — and then letting it run quietly in the background.

6. Direct windfalls intentionally 

Bonuses, tax returns, inheritances or periods of higher income are opportunities to move the needle.

Applying even part of these amounts to your loan or offset can:

• reduce interest over time

• shorten the loan term

• increase future flexibility.

You don’t need to direct every dollar — but doing nothing is often the most expensive option.

Is it time for a HoLo Health Check?

Paying off your home loan sooner isn’t about doing everything at once.

It’s about:

• having the right structure,

• using it consistently, and

• reviewing it regularly as your life changes.

If you’re unsure whether your current loan is helping or hindering your progress, a home loan health check with HoLo could bring clarity — and may even uncover opportunities you didn’t realise were there.

If you’d like to know more, book an appointment or contact us.

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