When you sign on the dotted line, you’re often staring down the barrel of 30 years of repayments. But how good would it be to get rid of that loan in 15 years or maybe even 10? It is possible. Here’s a list of 10 things you can do to sort that mortgage right out from NOW. 

1. Pay more than the minimum repayments

No, you don’t have to double your repayments, but you can certainly pay more than the base amount. If you add an additional 2/3rds, you’ll pay your mortgage off in 15 years instead of 30! Here’s the math: for a $500,000 loan at 3 per cent over 30 years with repayments of around $2100 per month, you can add $1400 per month (2/3rds of $2100) bringing you a total of $3500 per month.

2. Cut back on the small stuff

We’ve all heard the coffee analogy one too many times. But the point is, things can add up. But if you love coffee, go ahead and sip on that latte and work out other places you can cut cost. Microspends on bottles of water, parking, expensive juices etc etc can all add up. Most of the time, it’s due to a lack of organisation. So be prepared for your day ahead and watch your money pile up!

3. Review your loans regularly

If you don’t already have a mortgage broker, get one. You should be reviewing your loan every few years. And when you get that lower interest rate, often saving you up to $5000 per year, make sure you tip that extra cash into your mortgage.

4. Don’t take on too big a home loan

For the love of God, don’t do it! The bank will lend you the maximum amount you can technically afford, but that doesn’t mean you should max out your repayments. You shouldn’t accept a loan more than four and half times your gross income. 

5. Set up an offset account

When you take out a loan, choose one with an offset account. Any money in an offset account reduces the balance used to calculate interest. The more money in the offset account, the less interest payable. 

6. Rethink your big ticket spends

Do you really need that extra-big TV? Or super fancy car? Put your savings in your offset account. In one year $10,000 will save you $300 in interest. Worth it.

7. Invest in something else too

Turn your savings into more money – invest in another property or into a share portfolio. Then later use that to pay off the balance of your mortgage. Of course be aware of tax implications – capital gains tax. 

8. Create a budget

If you never created one before, the idea probably inspires eye rolls and boredom. But it’s well worth it. And once you’ve designed one, you might even enjoy it…a little bit. Create separate bank accounts for different things and really audit your spending. There are a thousand different budget guides online. Let your fingers do the walking. 

9. Do you, not anyone else

Don’t try and keep up with your friends and their activities – if the activities are super expensive. There’s so much you can do for a free in our great country. It’s sometimes a good idea to invest in an activity you like – and then make it your thing! Hours of fun for little investment.

10. Find some extra income

Side hustle. It’s the way of the future. It’s how you’ll build your empire – and pay off your mortgage quicker. Find something you can do in evenings or weekends that you actually enjoy doing too. You could even put your house to work for you – a lot of people are making a tonne of money off Airbnb.

So that’s just 10 ways, there are more ways to reduce that balance, but this is a great place to start!