What is the fastest way to pay off a home loan?

Put more money at it. Pay more than the minimum, keep as much as you can in your offset account, or both. Less balance means less interest, which means more of each repayment goes off the principal.

Is it better to make extra repayments or keep money in an offset?

Both cut your interest the same way. Extra repayments lock the money into the loan, while an offset keeps it available. If you want flexibility, the offset. If you want it out of reach, extra repayments.

Do small extra repayments make a difference?

Yes. A regular amount above the minimum lowers your balance every month, which lowers the interest the bank charges, and that compounds over the life of the loan.

Can I make extra repayments on a fixed rate loan?

Often only up to a limit set by the lender. Go over it and you can be charged. Check your loan's terms before paying extra on a fixed loan.

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How do I actually pay off my home loan sooner?

Bayley Clarke · Mortgage broker on the road · Last checked 16 October 2026 · 3 min read

The short answer

There is no secret sauce here. It is all arithmetic. Put more money into your home loan than the minimum and it gets paid off sooner.

The other lever is your offset. The more money sitting in it, the less interest the bank charges you each month, so more of the same minimum repayment goes off the principal. Money in versus money out, and both sides are mostly in your control.

The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.

Lever one: pay more than the minimum

Your minimum repayment is worked out to clear the loan over its full term, usually 30 years. Every dollar you pay on top of that goes straight off what you owe. A smaller balance means the bank charges less interest next month, which means more of your next repayment goes off the balance too. It compounds in your favour.

You don't need a big lump sum for this to work. A regular amount above the minimum, set up so it comes out automatically on payday, does most of the heavy lifting over the years. The point is consistency, not heroics.

Lever two: grow your offset

If you have an offset account, money sitting in it is taken off your loan balance before the bank works out your interest. You're not technically paying the loan down, but the effect on interest is the same. The bank charges you less each and every month, which means your minimum repayment is going towards more of the principal, which means your loan is paid off sooner.

The upside of doing it through the offset is that the money stays yours and available. If something comes up, you can get to it. If nothing does, it's quietly been cutting your interest the whole time. Have your pay land there, let your savings build there, and every extra dollar you earn and park there speeds the whole thing up.

Money in versus money out

That's really the whole answer. Money in is in your control: how much above the minimum you pay, and how much you keep in your offset. Money out is the interest the bank charges, and the only way to shrink it is a smaller balance, a bigger offset, or a better rate.

So if you want it gone sooner, there's no product or trick that beats putting more money at it. Pick the lever that suits how you live, extra repayments if you want it locked away, the offset if you want flexibility, and smash it.

The honest bit: the rate still matters

Extra repayments work best on a loan that isn't overcharging you in the first place. If your rate has drifted above what the market is doing, every extra dollar is fighting harder than it needs to. It's worth checking that before you start squeezing the budget.

And if your loan is fixed, extra repayments are often capped, so check what yours allows before you go hard.

Want to see how fast your loan could go?

A 30 minute call. I look at your balance, your rate and your offset set-up, and tell you which lever moves the needle most for you.

Book a 30 minute call Call 0437 189 939

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Next question

Are fortnightly repayments really a trick to paying off your home loan sooner, or is it a myth?

Depends how your bank works it out. True fortnightly makes next to no difference.