Own your home sooner

If you’re anything like most Australians, you probably worked really hard to get your home loan. And now you can’t wait to see the back of it.

We can help with six small steps that will fast track your way to financial freedom.

To show you how much of a difference these six steps can make to your home loan, our calculations are based on a $300,000 home loan (principal and interest) with a 5.5% per annum interest rate over 30 years.

1. Pay fortnightly

Reduce the cost of your home loan simply by making payments fortnightly rather than monthly. There are 12 months but 26 fortnights in a year. By increasing the frequency of your repayments, you pay off your loan faster. That may not sound like much, but it can really add up over time.

It could shave more than five years and a whopping $62,255 from your interest bill1.

2. Pay lump sums into your mortgage

Paying a lump sum amount like your tax refund, bonus or proceeds of a car sale into your loan can shorten the life of the loan with significant savings on the interest.

Making a one-time lump sum payment of $20,000 in the fifth year of the loan could reduce your loan term by three years and six months, and save nearly $52,000 in interest2.

Check how much sooner you could pay off your home loan with this lump sum calculator.

3. Make extra payments

Small-scale strategies like collecting your loose change or making your own lunch instead of purchasing it can pay huge dividends in the years to come.

You might be surprised to know that if you swap just one shop lunch for a homemade lunch each week for a year and put that $10.00 into your home loan, you could save over $17,000 in interest3. Which will you remember in years to come – the small sacrifice or the saving?

Calculate how much you could save with a regular extra payment.

4. Have a home loan health check

Home loans are no longer a one-size-fits-all product. Review your loan periodically to make sure you're getting the best deal for your needs.

5. Keep your repayments the same when the interest rate drops

A drop in interest rates gives you the opportunity to pay off your property sooner – all you need to do is continue the same repayments.

If the interest rate drops to 5% from 5.5%, the monthly payments change from $1703 to $1610. So, by keeping your payments the same, you're effectively adding an extra $93 to your total monthly payment (or $1116 a year1). The bonus is that if you've been paying the same amount every month anyway, you may not even notice it.

Check how you could put the latest rate change to better use with this home loan repayment calculator.

Swap just one shop lunch for a homemade lunch each week for a year and put that $10 into your home loan instead, and you could save over $17,000 in interest.

6. Use our online tools

Citibank offers a range of online tools and calculators to help you manage your home loan – and also find ways to save on other household expenses.

Use our personal budget tool to help you balance your family budget or check out our mortgage calculators to see the benefits you can experience by making extra or lump sum payments.

Important Information:

The calculations are indicative and act as a guide only.

1. The calculations are based using the Citibank Loan Repayment Calculator.

2. The calculations are based using the Citibank Lump Sum Repayment Calculator.

3. The calculations are based using the Citibank Extra Repayment Calculator.

The economic information was prepared from a variety of information sources, based on the information available at the time of publishing. We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made at the time of compilation, but no warranties are made as the accuracy, reliability or completeness. Neither Citigroup nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this information. This information is an indicative guide only. This material contains general advice only and does not take into account your individual objectives, financial situation or needs, and you should consider whether it is appropriate for your particular circumstances. Further information and our dispute resolution process is available at or by phone on 1300 137 931 .