Wavelength - brought to you by bcu

With a few changes you can pay off your home loan sooner and save money.


Behind the freshly painted walls and newly potted plants in your new home, is a mortgage. It’s a simple fact of property ownership that for the vast majority of us, home loans will be a necessity. Fortunately, there are a lot of steps you can take to work towards paying off your home loan quicker.

Pay fortnightly

Consider switching to a fortnightly repayment. The great thing about switching to fortnightly payments is that you shouldn’t even notice a difference. Your payments are exactly half the size of what they would be if you paid monthly; you just pay twice as often. This means you're effectively making an extra month's repayment across the year. Check out the bcu Loan Repayments calculator to see how much you could be saving with this one simple change.


Having a budget is essential to stay on track financially, but it’s even more important when you want to find extra money to pay down your mortgage quicker. If you know what your debts and expenses are every month, there’s a good chance that you can find the extra money to pay off your mortgage sooner by making larger payments. Every day small purchases can add up quickly and your budget will help you determine where you can cut back.

Pay more than your minimum

Any extra repayments you make above the minimum go towards the principal of the loan, rather than the interest. That means you will pay less over the life of your loan by reducing the interest charged on the balance. If you can afford to, paying more than the minimum required each month is worth considering, and even a small amount can make a big difference over the term of the loan. Use the bcu Extra Repayments Calculator to see how much time and interest you could save by making extra repayments where possible.

Make a lump sum payment

Another strategy is to make a one-off lump sum payment when you have some extra money, such as your tax return, a work bonus or an inheritance. Once again, by reducing your principle, you’ll pay less interest in the years ahead.

Use an offset account

An offset account is a great home loan feature that can help you save on interest. An offset account is a transactional account linked to your home loan. For example, with a Variable Home Loan, you are able to deposit funds into this account and it will reduce the balance of your loan that interest is calculated on thus saving you interest. If for some reason you need to access these funds for other expenses, you can still withdraw the money.

Important information

Information on this website is general and has been prepared without taking into account your objectives, financial situation or needs. You should consider whether this information is suitable for your objectives, financial situation and needs before acting on the information provided.