The 5 Money Habits That Can Knock 5-10 Years Off Your Home Loan

Small, consistent habits make a bigger difference than chasing interest rates. Here’s how to use structure and discipline to accelerate your mortgage payoff.

Big financial breakthroughs come from small behaviours repeated consistently. The right habits, supported by the right structure, can remove years from your mortgage without increasing your income.

Most homeowners want to pay off their loan faster.

But when life gets busy, interest rates rise, or expenses creep in, financial goals often fall to the bottom of the list.

The secret to long-term financial success isn’t a perfect budget or a constant hunt for lower rates.

It’s habits, simple behaviours that compound over time and build unstoppable momentum.

At Crown Money, we’ve seen these five habits consistently cut 5 – 10 years off clients’ mortgages, even without major increases in income.

Let’s break them down.

 

1. Automate Everything You Can

Automation is one of the most powerful tools in personal finance.

When bills, transfers, and savings happen automatically:

  • you’re less likely to miss payments
  • you avoid overspending
  • your debt reduction becomes consistent
  • your financial stress drops
  • long-term progress becomes predictable

 

This is why the Home Ownership Plan (HOP) uses automation as a core pillar,  it removes emotion, decision fatigue, and inconsistency.

What to automate:

✔ Bills

✔ Weekly spending money

✔ Loan repayments

✔ Savings

✔ Buffer contributions

If it can be automated, automate it.

 

2. Use a Weekly Spending System (Not Monthly)

Most people get paid fortnightly… but their spending happens daily.

This mismatch is where overspending begins.

Weekly allocations solve this by:

  • giving you consistent boundaries
  • breaking months into manageable chunks
  • reducing anxiety around spending
  • stopping the “I’ll catch up next month” cycle
  • limiting unplanned blowouts

 

A weekly system creates rhythm and stability, and your mortgage benefits because your finances stop going backwards.

Did you know?

People who switch from fortnightly to weekly spending allocations typically reduce their discretionary spending by 10–20% without feeling restricted.

 

3. Protect Your Redraw, Don’t Treat It Like Savings

Redraw is one of the biggest reasons mortgages don’t decrease.

Most households deposit extra… then pull it out again for:

  • holidays
  • school fees
  • car repairs
  • unexpected bills
  • “just in case” moments

 

Every withdrawal resets your loan backwards.

A truly effective money habit is:

Don’t touch your redraw, ever.

Instead, create a dedicated savings buffer account that exists purely to absorb unexpected expenses. This keeps your mortgage progress intact.

 

4. Review Your Mortgage and Banking Structure Annually

Life changes.

Income changes.

Interest rates change.

Your financial goals change.

Your mortgage should adapt too.

 

An annual review ensures:

  • your rate remains competitive
  • your structure still supports your goals
  • your spending habits are aligned
  • your loan is moving in the right direction
  • you’re not paying hidden fees
  • your cash flow is optimised

 

Most people haven’t reviewed their loan in years, and they’re leaving thousands on the table.

This habit alone can wipe 1–2 years off a mortgage.

 

5. Prioritise Principal-First Repayments (Even Small Ones)

The fastest way to reduce your mortgage isn’t cutting coffee, it’s increasing principal payments.

Even an extra:

$25 per week

$50 per fortnight

$100 per month

…can remove years off your loan.

The key is consistency, not size.

Principal-first repayments work because:

  • they reduce the loan balance immediately
  • interest is recalculated daily on the new amount
  • progress compounds faster over time
  • It’s one of the most effective financial habits any homeowner can build.

 

Real-Life Examples: How These Habits Add Up

Scenario A: The Busy Family

Implemented automation + weekly spending.

Outcome:

Mortgage reduced by $9,800 more in one year than the year before.

 

Scenario B: The Young Professionals

Stopped accessing redraw + added $50 weekly principal.

Outcome:

Removed 6 years from their loan trajectory.

 

Scenario C: The Single Income Household

Created a buffer account + completed annual reviews.

Outcome:

Lowered interest costs significantly and maintained steady, stress-free progress.

 

Paying down your home loan faster isn’t about massive sacrifices.

It’s about smart habits supported by a strong banking structure.

When automation, boundaries, and consistency work together, your mortgage naturally accelerates, without financial strain.

These five habits are simple.

But when applied consistently, they can transform your financial future.

Want help building the habits that cut years off your mortgage?

We’ll analyse your current structure and show you simple, practical strategies to accelerate your progress.

 

👉 Book your free Home Loan Review today