How to get mortgage-free faster

Paying off your mortgage faster and paying less interest overall sounds too good to be true – but it’s not. 

Here are some of the ways ANZ can help you do it:



Watch this video for some tips from our Home Loan specialists on repaying your mortgage faster:


Make repayments more frequently

By making repayments more frequently (e.g. fortnightly instead of monthly) you actually repay slightly more over the year. That reduces the amount you owe (your principal) faster, which in turn reduces the overall interest you pay.

In the example below, based on a home loan of $400,000 at an interest rate of 6% p.a., switching from monthly to fortnightly repayments would mean save you $98,000 in interest – and you’d repay your mortgage 6.5 years faster!

The example below is also based on the assumption that the 6% interest rate remains the same for the duration of the loan.

Monthly repayments

Fortnightly repayments

Your repayments:

$2,400 monthly

$1,200 fortnightly

Total annual repayments:

$28,800

$31,200

How long it will take to repay your loan:

30 years

23.5 years

Your total interest cost:

$463,000

$365,000

To work out the impact on your mortgage of making more frequent repayments, use our Home Loan repayments calculator.


Make extra mortgage repayments

If you can afford to, consider:

  • Paying a bit extra each time you make a mortgage repayment, and/or
  • Making a lump sum repayment if you come into a bit of money (for example if you get a tax return or a bonus).

How much extra can you pay?

It depends on what kind of mortgage you have:

  • If you have an ANZ Floating Rate or Flexible Home Loan you can make extra payments any time you like and as much as you like, with no fee.
  • If you make an extra repayment on your ANZ Fixed Rate home loan  and it’s the first extra repayment in that year and it's no more than 5% of the loan amount you owe on your loan then you will not incur an Early Repayment Recovery. An Early Repayment  Admin Fee may apply.

Should you put any extra money into savings instead of repaying your mortgage?

It’s your choice and the answer is different for everyone – some people prefer to focus on reducing debt; others prefer to build up some savings as well. However, keep in mind that the interest you save on your mortgage may be more than the interest you’d earn in a savings account.


Keep your mortgage repayments the same if interest rates fall

If you have an ANZ Floating Home Loan and interest rates fall, your repayments will automatically reduce. But if you want to, you can keep your payments at the same level. The extra money will go towards reducing your principal, which means you’ll pay less in interest and repay your mortgage sooner. Just contact us to arrange it.


Consider an ANZ Flexible Home Loan (also known as a Revolving Credit Facility)

If you’re disciplined and good at managing your money, an ANZ Flexible Home Loan can be a good way to get mortgage-free faster. It’s like an everyday account and home loan in one. Interest is calculated daily, so by keeping as much money in the account as you can at any given time, you can reduce the overall amount of interest you pay – and repay your mortgage sooner.


Lending criteria, terms, conditions and fees apply.

This material is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. If you would like to speak to an ANZ Authorised Financial Adviser, please call 0800 269 296.

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