Mortgages – something most “grown-ups” have these days. Big heavy things that rest around your neck for 20, 30 or 40 odd years. I’ve even heard of some UK based mortgage companies allowing people to take on mortgages to be passed onto their kids. Mortgages are the evil (?) that allow us to buy homes, businesses and other large scale items that in theory help us live our lives.

My mortgage has 26 years to run on it, it’s burning through my income like nothing else, and right now the housing market the way it is, I’m not seeing the returns on the property that I might have 10 years ago. Still I’m not that far into the whole house ownership thing to worry about that. Sadly as mortgages as structured in the first few years you pay mainly interest, and a little principal.

My mortgage is up for renewal and an opportunity presented itself for me to make some significant in-roads into my mortgage. Here’s what I did…..

The Interest Rate

Last time I renewed my mortgage I was caught by the raising interest rates, the falling economy and a few other factors. My wife and I decided that we’d lock in an “okay” interest rate for 18 months. That rate was just under 9% pa.

This meant we scrimped and fought for every cent and dollar to live – but at least we managed to pay the mortgage.

Now, 18 months on, we survived that time of tightness and sure we don’t have the new lounge suite, nor top of the range 50″ Plasma TV and our kitchen isn’t finished, but we made it.

Of course we are about to renew the mortgage at the current interest rate of just over 6% pa. That’s just shy of a 3% drop.

It dawned on us that we’ve already be paying $WXYZ a fortnight & haven’t really missed it (okay so we have missed it but…we survived) – so lets leave the repayments as they currently are.  Sure it’ll continue to be a bit tight for another year or so – but we’ll slash 10 years off our mortgage and save ourselves hundreds of thousands of dollars in interest!


If you have a mortgage, pay as MUCH as you can. You will be amazed how much difference $10 a fortnight can make. If you can go to $50, $100 or more … then do it.  Sacrifice a little now – to gain a LOT down the track! Do you really NEED that 50″ Plasma or will your current TV do? Do you really NEED an expensive mobile phone or will your current one be fine for another year?

Of course I realise that in 12 months time when I renew again, interest rates will have changed and 10 years might end up being 8 years … but any year OFF the mortgage is a great year!

-Published with permission from Keran McKenzie at

How To Take 10 Years Off Your Mortgage, 5.0 out of 5 based on 1 rating



  1. Stuart Wills says:

    This is good advice; however there is often more that can be done.
    Remembering that every situation is slightly different, we often suggest also;
    Splitting your mortgage between different fixed rates – this way you ensure that you never have all of your mortgage comming off fixed at any one point in time, a time when rates may be high.
    Reviewing any other more expensive debt – often other debt is what really restricts what you are able to pay off your mortgage.
    Looking at what bills you may be able to pay annually instead of weekly or monthly – often discounts apply.
    Making small changes – if you are able to save say $20 per week on your day to day expenses (luches, coffee, parking etc) and apply this extra to your mortgage it can make quite a difference.

    My advice (and I have to say this…) is to take an hour or so and speak to a mortgage broker – someone who does this every day and you are able to work with and trust.
    This hour could save you thousands.

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