The average Australian mortgage takes 25-30 years to pay off — but with the right strategy, you could cut that by 5-10 years and save over $100,000 in interest.
By switching from monthly to fortnightly repayments, you make 13 months of payments per year instead of 12 — without feeling the pinch.
If your minimum is $2,847/month, round up to $3,000. That extra $153/month compounds dramatically over time. Use our mortgage overpayment calculator to see your exact savings.
An offset account reduces the balance on which interest is calculated. Have your salary paid directly in — even if you spend it all by month end, the daily average balance in the offset reduces your interest significantly.
| Lump Sum | Interest Saved (6.25%, 25yr, $600k) | Years Saved |
|---|---|---|
| $5,000 | ~$18,000 | ~0.5 years |
| $10,000 | ~$35,000 | ~1 year |
| $25,000 | ~$82,000 | ~2.5 years |
| $50,000 | ~$150,000 | ~4.5 years |
Many Australians are paying 0.5-1% more than necessary. Refinancing in 2026 could save thousands annually — redirect those savings as overpayments.
Calculate Your Savings Now →Variable rate mortgages — generally yes, no penalty. Fixed rate loans often cap overpayments at 10% of outstanding balance per year. Always check your loan contract first.
On a $600,000 mortgage at 6.25% with 25 years remaining, an extra $500/month saves approximately $128,000 in interest and cuts 7 years off your loan.
Offset accounts offer more flexibility and accessibility. Redraw funds can be harder to access. Most financial advisers prefer offset accounts for this reason.