How to Pay Off Your Mortgage in 10 Years

Most Australian home loans are set up to be paid off over 25 to 30 years, but what if you could do it in just 10?

Paying off your mortgage faster means less interest, more financial freedom, and one less thing to stress about. You’ll have more control over your money, and the peace of mind that comes from owning your home outright.

While shaving 15-20 years off your loan might sound impossible, it’s more achievable than you think. If you're strategic, consistent, and willing to make a few sacrifices in the short term, you can reach your goal. Here’s how to do it.

Know Your Loan and Set a Clear Goal

Before you dive in, get clear on where you currently stand. Look at your:

• Total loan balance
• Interest rate
• Minimum monthly repayment
• Remaining loan term
• Fixed or variable loan type

Next, use this home loan calculator to figure out how much you’d need to repay each month to pay off your loan in 10 years. For example, if you owe $500,000 at a 5% interest rate, your repayments would need to be around $5,300 per month, compared to $2,684 over 30 years.

This number gives you a clear monthly target. It might feel high, but there are smart ways to bridge that gap.

Switch to Fortnightly Payments

One of the simplest changes you can make is switching from monthly to fortnightly payments. There are 12 months in a year, but 26 fortnights.

So if your monthly repayment is $3,000 and you instead pay $1,500 every two weeks, you’ll end up making the equivalent of 13 full monthly repayments per year.

That’s one extra month’s payment every year without even noticing. Over time, it shaves years off your loan term, and thousands off the interest you pay.

Make Extra Repayments Regularly

Every extra dollar you put into your mortgage now helps reduce the total interest you’ll pay over time. Even small amounts make a big difference.

Let’s say you add just $100 per week in extra repayments. Over 10 years, that’s $52,000 off your loan, and it could shorten your term by several years depending on your loan size and rate.

Use things like:

• Work bonuses
• Tax returns
• Side hustle income
• Rental income
• Cash from selling unused items

Make sure your loan allows extra repayments without penalties. Many variable-rate loans do, but fixed-rate loans may have restrictions.

Avoid Redrawing or Tapping Equity

If you’re using an offset account or have redraw access, it can be tempting to dip into your mortgage when cash is tight. Try not to.

Every time you redraw from your home loan or borrow against your equity, you’re setting yourself back. You lose the progress you’ve made on interest savings and increase your loan term.

Think of your mortgage as a one-way street. Pay in and don’t look back, unless it’s a real emergency.

Refinance to a Lower Interest Rate

Even a small drop in your interest rate can have a big impact on your repayment plan.

Let’s say you refinance from 5.2% to 4.8% on a $500,000 loan, you save thousands in interest over the life of the loan and lower your required repayments.

Tips:

• Compare home loan rates every 1–2 years.
• Ask your current lender to match competitors.
• Use a refinancing mortgage broker to find better deals with other lenders, free of charge.
• Watch out for break fees if you're on a fixed loan.

The lower your interest rate, the more of your repayment goes toward the principal, and the faster you can pay it off.

Live Below Your Means - For Now

You don’t need to live like a monk forever, but cutting back your lifestyle just for a few years can supercharge your mortgage repayments.

This might include:

• Skipping the new car
• Delaying renovations
• Renting out a room or Airbnb’ing part of your home
• Dining out less and cooking more
• Sticking to a tight grocery budget

The goal? Free up cash and throw it at your mortgage. Every extra payment brings you one step closer to full ownership and total freedom.

Track Progress with Mini-Milestones

Paying off your mortgage in 10 years is a big goal. Break it into mini-milestones — for example:

• Reaching 90%, 75%, 50% of your balance
• Hitting $100K chunks
• Celebrating every year you shave off your loan term

Use a visual tracker, spreadsheet, or mortgage app to keep yourself motivated. Treat it like a game and celebrate small wins (just don’t spend too much doing it!).

When Not to Pay It Off Early

Paying off your home loan early makes sense for many (but not all) situations. Consider pausing your aggressive strategy if:

• You have high-interest debt like credit cards or personal loans.
• You don’t have an emergency savings buffer.
• You can get better investment returns elsewhere (and understand the risks).
• Your cash flow is unstable or you’re about to go on maternity leave, reduce work hours, etc.

Talk to a financial advisor if you’re unsure. In some cases, flexibility beats early repayment.

Conclusion

Paying off your mortgage in 10 years isn’t just a dream, it’s a plan. With discipline, consistency, and a bit of sacrifice now, you can fast-track your way to financial freedom.

Start by understanding your numbers. Then switch to fortnightly payments, make extra contributions, avoid drawing back, and refinance frequently. Track your progress, stay focused, and remind yourself why you’re doing this: to live a life free from the weight of a home loan.

It’s not always easy, but it is absolutely worth it. If you need some help finding the best home loan rates, or want to refinance your home loan to pay off your home loan quicker, speak to an experienced refinancing broker at Eden Emerald Mortgages. Fill out the form below to get in touch.