Paying off your mortgage early is one of the most powerful financial moves you can make. Not only can it save you thousands in interest, but it also provides the ultimate peace of mind—freedom from debt. At AFM Group, we’re passionate about helping Australians achieve financial independence. Here’s how you can create a clear, humanised strategy to pay off your mortgage faster.
Why Paying Off Your Mortgage Early Matters
For many people, a mortgage is the largest financial commitment of their life. But what if it didn’t have to take 30 years to repay? By accelerating repayments—even slightly—you reduce the total interest paid and gain financial flexibility for the future. Whether it’s saving for retirement, investing in property, or just living debt-free, paying off your mortgage early puts you back in control.
Real Story: Sam and Lisa’s Smart Journey
Sam and Lisa, a couple from Newcastle, bought their home in 2018. With a 30-year mortgage, they were content to just make the minimum repayments. But after speaking with AFM Group, they learned how small changes could make a big difference. By switching to fortnightly repayments and putting annual bonuses directly into their mortgage, they’re now on track to pay off their loan 8 years earlier—saving over $65,000 in interest.
Practical Tips to Pay Off Your Mortgage Faster
Make Extra Repayments Even small additional payments reduce the principal and shorten the loan term. Consider:
- Redirecting salary increases
- Using tax returns or bonuses
- Rounding up your repayments
Switch to Fortnightly Payments Paying every two weeks instead of monthly means making 26 payments per year—effectively one extra monthly repayment annually.
Use an Offset Account An offset account reduces the interest charged by offsetting your savings against your loan balance. Every dollar in the offset is a dollar not charged interest.
Review Your Interest Rate Rates change over time. Refinance to a lower rate and put the savings back into the loan. AFM Group can help negotiate better terms with your lender.
Avoid Interest-Only Loans While these reduce repayments initially, they don’t chip away at your principal. Switch to principal and interest as soon as you can.
Common Mistakes to Avoid
- Ignoring better deals: Staying loyal to one lender may cost you. Always compare.
- Not budgeting: You can’t repay more if you don’t know where your money’s going.
- Withdrawing too often from offset/redraw: It defeats the purpose of reducing your loan balance.
How AFM Group Supports You
At AFM Group, we don’t just help you get a mortgage—we help you get rid of it. Our financial experts provide personalised advice, tailored refinancing options, and tools to track your repayment progress. We work with you to build a mortgage strategy that reflects your income, lifestyle, and long-term goals.
Final Thoughts
The idea of paying off mortgage can seem daunting, but it’s more achievable than you think. With the right habits, mindset, and support, you can gain control of your financial future. At AFM Group, we’re here to guide you every step of the way. Let’s help you make debt-free living your reality.
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