The Magic of Small, Consistent Extra Repayments
Many borrowers believe they need a massive lump sum of $20,000 or $50,000 to make a dent in their home mortgage. In reality, adding just $100 to $200 per month in extra repayments can yield dramatic results over the life of a loan.
Example Case Study: On a $350,000 30-year home loan at 6.75%, adding just $200 extra every month saves over $82,000 in interest and frees you from the mortgage 5.8 years earlier!
How to Implement Extra Repayments Effortlessly
- Automate on Payday: Set up an automatic recurring bank transfer for the day after your salary arrivesโtrack payoff dates across any installment debt in our Universal Loan Payoff Calculator.
- Round Up Your EMI: If your regular EMI is $2,274, round it up to $2,500, or switch to paying 1 Extra EMI Per Year or Bi-Weekly Installments.
- Use Mortgage Offset Accounts: In countries like Australia, NZ, and the UK, placing savings inside a 100% offset account reduces daily interest without locking up your emergency cash. Use our ANZ & Australia Mortgage Calculator or general Offset Account Calculator to test offset savings.
- Combine with Lump Sums: Whenever you receive a bonus or tax refund, combine your monthly payments with a one-time injection using our Lump Sum Prepayment Calculator or verify math in How to Calculate Extra Principal Payments.