I cut 8 years off my mortgage with $20 - here's how

A simple $20 tweak can dramatically cut down the life of your mortgage, so now it’s time to talk about the strategy I used to shave eight years off mine. With just a small repayment, years disappeared. So here’s how, and why, it works. I’ve used my experience as a financial journalist to change my money, so get an inside look at my finances, then why extra repayments are so powerful in the early years of a home loan, how interest is actually structured, and the practical ways you can use that to get mortgage-free faster to make it work for you. Time to talk about the main mortgage repayment strategies available in New Zealand, and how to figure out which one works for your lifestyle and spending habits. Plus: how to automate extra payments, how to use falling interest rates to your advantage, why fortnightly repayments sneak in an extra payment each year, and when to throw windfalls at the loan for maximum impact. If you’re trying to get ahead on your mortgage without sacrificing your entire life to it, this episode gives you the simple tactics that make the biggest difference. Tune in for a realistic, NZ-specific breakdown of what actually works, and how small changes can save you years. Follow me everywhere! Facebook / https://www.facebook.com/FrancesCookNZ Instagram / https://www.instagram.com/francescooknz TikTok / https://www.tiktok.com/@francescooknz Join the Money Memo newsletter for a free weekly money tip in your inbox each week https://www.francescook.co.nz/subscribe #makingcents #francescook #mortgagefree #mortgage #homeloan #financialfreedom #debtfreejourney #moneytips #moneymindset #mortgagetips #payoffdebt #firsthomebuyer This podcast was filmed & produced by Fanaticals Video editing & content production by Lana Byrne Audio engineering by Tash Chittock Chapters 00:00 – Introduction 00:55 – My “baby journalist” days 02:13 – A tiny $20 pay rise that changed everything 03:32 – How extra repayments triple the power of your money 05:56 – Why extra repayments are most powerful at the beginning 07:53 – Using compounding interest against your debt 08:41 – The truth behind “secret” mortgage payoff hacks 09:47 – Method 1: The $20 mindset 10:57 – Method 2: Offset and revolving credit explained 14:17 – Method 3: Switching from monthly to fortnightly payments 15:09 – Method 4: Keep repayments the same when rates drop 16:04 – Method 5: Throw bonuses, tax refunds and side hustle money at it 17:02 – Method 6: Automate extra payments so willpower doesn’t matter 19:02 – Outro