The best way to optimise an existing home loan is to improve how it’s structured and managed, not necessarily to replace it.
Small structural changes and behavioural tweaks compound over time and can shave years off your mortgage.
Core optimisation levers include:
As Vincent Turner explains, most people treat their mortgage as “set and forget,” but that mindset leaves money on the table for decades.
A well-structured home loan matches your life, income patterns, and future plans, not just today’s interest rate.
A split loan combines fixed and variable portions so you get both certainty and flexibility.
Benefits of split loans:
Jake de Ruyter describes the fixed portion as an “insurance policy” and the variable portion as the “engine” that actually helps you pay the loan down faster
Inline definition:
A fixed rate loan locks your interest rate for a set period (usually 1–5 years).
A variable rate loan moves with the market and allows greater flexibility.
Break costs are unpredictable fees charged when you exit a fixed-rate loan early.
Key points:
Vincent shared a real example where breaking a fixed loan cost $35,000, even though the long-term decision still made sense.
An offset account reduces the interest charged on your loan without paying the loan down directly.
Simple explanation:
If you have a $500,000 loan and $50,000 in offset, you only pay interest on $450,000.
Best practices for offsets:
Inline definition:
An offset account is a transaction account linked to your mortgage that reduces the balance used to calculate interest.
Research mentioned in the episode found that while most people want offsets, around half don’t fully understand how they work.
Offsets and redraw facilities are not the same, legally or practically.
FeatureOffset AccountRedraw FacilityOwnership of fundsYour moneyBank’s moneyAccess speedImmediateOften delayedDeposit guaranteeYes (up to $250k)NoTax flexibilityBetterRisky for future investments
Vincent shared a case where redraw funds required branch visits, forms, delays, and withdrawal limits, making offsets far more practical in emergencies
An offset is worth it when the interest saved exceeds the extra cost of the loan package.
Factors brokers assess:
Jake notes that part of a broker’s value is modelling these scenarios across multiple lenders, not just guessing
Used correctly, credit cards can increase offset balances and reduce mortgage interest at no cost.
Direct answer:
Put all eligible expenses on a credit card, keep cash in your offset longer, and pay the card off in full every cycle.
Why it works:
Golden rule:
If you can’t pay the card off in full every month, don’t use this strategy.
Jake explains that this only works with discipline, otherwise the interest costs erase all benefits instantly.
Fortnightly repayments usually outperform monthly repayments, even at the same nominal amount.
Direct answer:
Fortnightly repayments create one extra full repayment per year and reduce interest faster.
Example from the episode:
Inline definition:
Interest is calculated daily but charged monthly, so reducing the balance earlier matters.
Yes. Keeping repayments unchanged after rate drops accelerates principal reduction.
Impact example:
Jake double-checked the maths because the result was so powerful
Even $100–$300 extra per month can cut decades of interest.
Why they’re powerful:
Vincent notes that many “pay off your loan in 10 years” schemes are dressed-up property sales, while simple extra repayments do most of the work
Every 6–12 months, or you risk paying the “loyalty tax.”
Loyalty tax explained:
Banks often give better rates to new customers than long-term ones.
Best approach:
Your current home loan strategy directly impacts future borrowing power and tax efficiency.
Strategic outcomes include:
Jake emphasises that strategy today creates “big wins” years down the track not overnight results
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