Paying off your home loan doesn’t have to take 30 years. In fact, with the right plan, you could be debt-free faster and cut up to a decade off your mortgage.
In our recent discussion with Lighthouse Financial adviser Justin Gauci, we explored how families can take control of their mortgage, avoid giving hundreds of thousands in interest to the banks, and free up cash flow sooner for other financial goals
Why being debt-free faster matters
For many households, the mortgage is their single biggest expense. On an $800,000 mortgage, repayments over 30 years can add up to more than $1.6 million – with over $830,000 of that being pure interest. That means you could end up paying as much in interest as you do for the house itself.
By taking control and aiming to be debt-free faster, you stop “sleepwalking” into gifting the banks money. Instead, you create options for your future – whether that’s investing, starting a business, or simply having financial breathing room.
The strategies that make the biggest difference
It’s not rocket science: the only way to cut years off your mortgage is to pay more than the bank’s minimum schedule. But the strategy behind how you do this makes all the difference.
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Increase repayments when rates drop: If your interest rate falls, resist the temptation to lower your payments. Keeping them at the same level can shave 8-10 years off your mortgage and save nearly a quarter of a million dollars.
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Avoid lifestyle creep: Pay rises and reduced expenses are opportunities to get debt-free faster. Using surplus income to increase mortgage payments can slash years off your loan term.
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Tailor your product mix: Revolving credit and offset accounts can work brilliantly for disciplined borrowers but poorly for others. The right structure must suit your habits and income patterns.
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Layer strategies: Small changes, like moving from monthly to weekly repayments, do help – but the real power comes from combining tactics for maximum impact.
What cutting 10 years looks like
Take that same $800,000 mortgage:
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30 years = $1.63 million paid back
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15 years = $1.17 million paid back (saving $458,000)
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10 years = just over $1 million paid back (saving nearly $600,000)
Even more importantly, clearing your mortgage early frees up thousands in monthly cash flow. Over the long run, that difference could compound into millions invested elsewhere, leaving you with both a debt-free home and substantial assets.
Key takeaways
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Being debt-free faster means keeping hundreds of thousands in your pocket, not the bank’s.
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The biggest wins come from maintaining or increasing repayments when rates fall.
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Tailor your mortgage structure to your personality and spending habits.
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Lifestyle creep is the silent killer of financial progress.
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Cutting a 30-year loan to 15 or even 10 years is achievable with planning and discipline.
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Small steps compounded over time create big results.
Next steps:
If you’d like to learn more, check out these other episodes below.
For a no obligation discussion to see how we can help you on the path to wealth, please contact us.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
