For many Aussies, the dream of owning a home outright is right up there with retiring early or winning the lotto. But with rising property prices, long loan terms, and lifestyle shifts- when do most people actually pay off their mortgage? And what’s getting in the way?
🕰️ When Do Most People Pay Off Their Home Loan?
The standard mortgage in Australia runs for 30 years, and most first-home buyers enter the market in their late 20s to early 30s. So technically, they should be mortgage-free by their early 60s.
But life has a funny way of stretching that out:
- People upgrade homes and take on bigger loans
- Others refinance and restart the 30-year clock
- Many redraw equity or take out extra funds for renovations, cars, holidays, or investments
- And some, particularly investors, never aim to pay off the loan—instead using strategies like interest-only lending and debt recycling
It’s no wonder many people head into retirement still owing money on their home.
🚧 Why Your Loan Might Not Be Going Down as Quickly as You Think
It’s easy to assume that if you’re making regular repayments, your home loan is steadily shrinking. But here are a few common reasons your balance may not be budging much – or at all:
- Refinancing but resetting the term
Yes, lower interest rates help – but extending your loan term back to 30 years each time can slow down your progress. - Redrawing equity or ‘cash out’ top-ups
As your property grows in value, lenders may offer more access to your equity. But using this for non-essential expenses can keep you stuck in a cycle of debt. - Interest-only periods
These can help with cash flow, especially for investors, but during that time you’re not chipping away at the principal at all. - Not reviewing your rate
Sitting on a high interest rate because “it’s too hard to switch” means more of your repayment goes to interest, not debt reduction.
💡 Tips to Pay Off Your Home Loan Sooner
If owning your home outright is still part of your plan, here are some smart ways to speed things up:
✅ Make extra repayments
Even $50–$100 extra a month can shave years off your loan and save thousands in interest.
✅ Use an offset account
Linking your loan to an offset account can reduce the interest you pay and shorten the life of your loan.
✅ Don’t reset the clock every refinance
When refinancing, ask to keep your existing loan term (e.g., 22 years left instead of starting again at 30).
✅ Avoid unnecessary redraws
Treat equity access like a business decision – not a piggy bank.
✅ Review your rate regularly
Banks don’t reward loyalty. A regular home loan health check with a broker can ensure you’re not paying more than you need to.
📘 Case Study: The Power of an Extra $50/week
Sarah and James have a $650,000 home loan over 30 years with an interest rate of 6.00% p.a. Their minimum monthly repayment is around $3,898.
By simply adding an extra $50 per week ($216 per month) to their repayments:
- They cut their loan term by 3 years and 5 months
- They save over $87,000 in interest over the life of the loan
That’s the power of small, consistent extra contributions without making any drastic lifestyle changes.
🏡 So… Will You Ever Pay It Off?
You can – if you stay aware and intentional.
It’s not just about what you borrow… It’s about how you manage it.
📞 Need help reviewing your loan?
At Mynt Financial, we’ve helped thousands of Aussies save time and money and even bring forward that mortgage-free lifestyle. Let’s see what we can do for you.
Josh Bartlett – Director (Mynt Financial)
Disclaimer: This information is general in nature and does not constitute personal financial advice. Figures are estimates only and subject to change based on your lender and financial position. While every effort has been made to ensure accuracy, we recommend speaking with a licensed mortgage broker or financial adviser to discuss your individual situation.
