Your mortgage is probably be the biggest debt you’ll take on during your lifetime.

Therefore, you’d want to pay off your mortgage as quickly as possible. After-all, who wants a mortgage debt in retirement?

So, here are simple ways to pay it down faster:

Change the payment frequency 

Unless you’re accounting for every dollar in a budget, you may have a bit of wriggle room to change how payments are made.

Many people pay their mortgages once a month, but if you split that amount in half and pay it once a fortnight, you’ll end up paying more over a year.

That’s because there are 26 fortnights in a year but 24 half-month periods, so you can pay the mortgage off a bit quicker without really noticing.

That might not sound like a lot but it would make a big difference over the whole life of the loan.

Make use of an offset account 

Another way to pay off the mortgage quicker is to use an offset account. If you have a $500,000 loan but $25,000 in an offset account then you only pay interest on the $475,000 balance.

You may think that would decrease the mortgage repayment, but it doesn’t. If you pay $2,000 a month it would stay at $2,000 a month, it’s just the interest portion of the payment that reduces and therefore the capital repayment portion increases.

This would mean that the loan is being paid off quicker than expected but with no change to your cash-flow.

Refinance

Royal commission on banking and the Federal productivity commission have both said it, if a borrower refinances even once during the life of their mortgage, they will save on average $31,200!

When you use an online mortgage management like loansHub to get your loan, it gives you advantage of a fast and easy online loan application system together with smart technology regularly reviewing your loan for when it’s the best to refinance.

Make additional payments 

The most obvious way to pay down your loan faster is to simply make one-off lump sum payment towards it. Just check that you won’t be penalised for paying your loan quicker by your bank especially if you have a fixed home loan.

Any amount put towards paying your loan down faster is a good move if there’s no lender penalty for doing it.

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This article does not constitute financial advice; readers should seek independent and personalised counsel from a financial adviser that specialises in property or a tax accountant.