For many Australians, the idea of being mortgage-free feels like a distant dream. With loan terms often stretching 25 to 30 years, it can be hard to picture life without repayments. Setting a clear goal, like paying off your home loan by 2035, provides motivation and focus. A decade is long enough to make meaningful changes, but short enough to stay realistic.

The good news is that paying off your loan sooner doesn’t necessarily require dramatic sacrifices. Small, consistent actions and smart use of your loan features can add up over time. Below, we explore practical strategies and examples of how borrowers have worked towards reducing their mortgage balance ahead of schedule.

Why set a 2035 goal?

Having a target year creates a clear milestone. Rather than thinking about your loan in vague terms, you’re aiming for a specific date. For example, if you currently have 20 years left, aiming to finish in 10 to 12 years helps break the task into smaller steps. It also encourages you to check in regularly, making sure you’re still on track.

Increase repayment frequency

Most lenders allow you to choose how often you make repayments. While monthly is standard, switching to fortnightly or weekly can bring forward the day you become mortgage-free. Because there are 26 fortnights in a year, fortnightly repayments mean the equivalent of one extra month’s worth of payments annually.

Case study: A couple in Brisbane earning regular fortnightly wages switched their loan repayments from monthly to fortnightly. Without changing their budget, they managed to cut nearly three years off their loan term.

Round up your repayments

Rounding up is one of the simplest strategies. If your repayment is $1,482, consider paying $1,500. That extra $18 may not feel like much, but over the course of a year it becomes $216. Over a decade, it adds up to more than $2,000, plus the interest savings from paying down the principal faster.

Case study: One Melbourne borrower rounded their $2,320 repayment up to $2,400. After five years, they had paid more than $4,800 extra off their loan without noticing the difference in their day-to-day budget.

Put extra cash to work

Windfalls such as tax refunds, bonuses, or inheritance money can give your mortgage a big push. Rather than letting that money sit in a transaction account, applying it directly to your loan can reduce the balance and save interest.

Case study: A Sydney homeowner put their $4,000 annual tax refund straight into their mortgage each year. Over 10 years, that added up to $40,000 extra in repayments, the equivalent of shaving several years off the loan.

Make use of an offset account

An offset account links your savings to your loan. The balance in your offset reduces the amount of interest you’re charged. For example, if you owe $500,000 but have $20,000 in offset, you only pay interest on $480,000.

Case study: A family in Melbourne kept $25,000 in their offset account as an emergency buffer. While the funds were still accessible, their interest bill dropped by around $1,500 over a single year. Over a decade, that saving made a noticeable impact on their progress towards a 2035 goal.

Consider redraw for flexibility

Some loans allow you to pay extra into your mortgage and then redraw it later if you need it. This can be a handy way to pay down debt faster while still keeping access to funds for emergencies.

Case study: A borrower in Adelaide set up an automatic transfer of $200 a week into their loan. They treated it as an expense, but knew they could redraw it if necessary. Over time, the balance dropped steadily, and they rarely touched the redraw, giving them peace of mind as well as progress.

Build an emergency fund first

While paying off your loan quickly sounds attractive, it’s also important to have a safety net. Without one, unexpected expenses can push you into credit card debt, undoing your hard work.

Case study: One Perth borrower put every spare dollar into their mortgage. When their car needed urgent repairs, they had to rely on a high-interest credit card. Another borrower with a $10,000 emergency fund in offset covered similar expenses easily, kept their mortgage progress intact, and avoided extra debt.

Review your rate regularly

Interest rates change over time, and lenders adjust their offers to attract new borrowers. Staying on top of your rate ensures you’re not paying more than you need to. Even a small difference makes a large impact over a decade.

Case study: A refinancer in Sydney dropped their interest rate by 0.40%. On a $600,000 loan, this saved them around $2,400 a year. They redirected that saving into extra repayments, helping them aim for their 2035 target.

Manage lifestyle spending

The little things add up. Reviewing household expenses like subscriptions, insurance, or utilities can free up extra cash for your mortgage. Redirecting even $50 a week into your loan equals $2,600 a year.

Case study: A couple in Adelaide cancelled unused streaming services and renegotiated their mobile plans, freeing up $120 a month. Over 10 years, that extra $14,400 went into their mortgage instead, alongside the interest savings.

Stay consistent

The most important factor in paying down a loan by 2035 is consistency. Setting reminders, reviewing your progress annually, and celebrating small wins keeps motivation strong.

Case study: One homeowner set up a visual progress tracker, colouring in a box each time their balance dropped by $10,000. This simple routine kept them motivated and focused on their end goal.

FAQs about paying off your mortgage faster

Is it better to pay extra on my mortgage or save?
It depends on your situation. Some borrowers prioritise building an emergency fund first, then put additional funds into their mortgage. Others use an offset account to combine both approaches.

How much faster can fortnightly repayments pay off a loan?
Switching to fortnightly repayments is usually equivalent to making one extra monthly repayment each year. Over a decade or more, this can reduce your loan term by several years, depending on your balance and rate.

Can small amounts really make a difference?
Yes. Even rounding up your repayments or redirecting small savings can add up over time. The combination of extra repayments and interest savings compounds, especially over a 10-year period.

What if interest rates change again?
Regularly reviewing your loan and rate can help you stay ahead. Even if rates rise, habits like offsetting savings, rounding repayments, and budgeting carefully still reduce the total interest you pay.

Final thoughts

Paying down your home loan by 2035 may sound ambitious, and it won’t be possible for everyone. What is realistic, though, is taking steps to reduce your mortgage significantly over the next decade without putting too much strain on your day-to-day budget. Real-world examples show that small, consistent changes like using an offset account, rounding up repayments, or redirecting windfalls can add up over time. Whether you reach the finish line by 2035 or simply shorten your loan term by several years, the benefits can be substantial.