Start with money you can genuinely spare
Extra repayments can reduce principal and the future interest charged on it. Before increasing payments, allow for bills that do not arrive monthly: insurance renewals, council rates, car repairs and property maintenance. Keep an emergency buffer suitable for your income stability and household needs. Sending every spare dollar to the mortgage can create pressure to borrow again when an unexpected expense arrives.
Check your loan's extra repayment rules
Variable loans often permit additional repayments, but conditions differ. Fixed loans may impose an annual or fixed-period allowance, with break costs above the limit. Ask how the allowance is measured and whether a lump sum would trigger charges. Do not assume the rules are identical across different splits of your loan.
Do not treat redraw as guaranteed emergency cash
Redraw may let you access some extra repayments, but minimum amounts, fees, processing times and lender restrictions can apply. Available redraw may change under the contract. Check the conditions before relying on it for urgent expenses. An eligible offset keeps money in a separate transaction account, but may have additional fees or a different loan rate.
Our offset versus redraw guide explains the distinction. If the property is or could become an investment, get tax advice before moving money between repayments and redraw; the purpose of borrowed funds can matter.
Understand the fortnightly repayment difference
Paying half your monthly repayment every fortnight creates 26 half-payments in a year: the equivalent of 13 monthly repayments. That adds an extra month's payment compared with 12 monthly payments. But a lender may calculate its fortnightly repayment as the annual total divided by 26, which does not create the same extra contribution. Confirm the amount, not just the payment frequency.
Make the plan manageable
Start with a modest regular amount, review your cash flow after a few months and increase it only if the buffer remains healthy. Confirm that any separate transfer is genuinely additional to your required repayment. If a bonus or refund arrives, divide it deliberately between upcoming costs, emergency savings and debt reduction rather than committing it automatically.
Review when your circumstances change
A repayment strategy that works during stable employment may not suit parental leave, self-employment or a move. Recheck affordability before changing your payments. If you are struggling with required repayments, speak to your lender early instead of prioritising extra payments.
Further reading
ASIC Moneysmart: pay off your mortgage faster.
General information only, not personal financial, tax or legal advice. Fees, repayment limits and access conditions vary by lender and product.