Mortgage Dos & Don’ts: What Actually Makes a Difference

When it comes to managing your home loan, small habits can make a big impact — both positive and negative. Let’s break down which tips that you frequently see online are truly effective (and which ones might need a rethink).

Do: Make fortnightly repayments instead of monthly

Switching to fortnightly repayments means you make the equivalent of one extra monthly payment per year. That extra contribution goes straight to your principal, helping you shave years off your loan term and save thousands in interest.

Do: Have an offset account

An offset account is one of the most powerful tools to reduce interest without locking your money away. The balance in your offset directly offsets your loan balance, meaning you pay interest on a smaller amount every single day.

Do: Start paying before settlement

If your lender allows, making payments before your loan officially settles can help you get ahead. It’s not always necessary, but it can give you a head start in reducing interest from day one.

Do: Make extra repayments 

Even small extra repayments make a huge difference over time. Every additional dollar goes directly towards your principal, meaning you’ll own your home sooner and pay less in interest overall.

Don’t: Make multiple inquiries to lenders in a short period

Shopping around is smart — but too many credit inquiries in a short time can lower your credit score. A better option? Work with a mortgage broker who can compare multiple lenders for you without affecting your credit file.

Don’t: Go over your credit limit

This one’s a red flag for lenders, especially when you don’t pay your debts on time. This could represent to the lender you may be unreliable to your loan obligations.

Managing your mortgage smartly isn’t just about interest rates — it’s about making consistent, strategic moves that add up over time. If you’d like us to review your current loan strategy and see where you could save, we’d love to help.