By Jason Given - June 2026 - 5 min read
Small changes to how you manage your home loan can shave years off the term and save you tens of thousands in interest.
When you pay off your home loan in full, the lender releases the mortgage from your property title. This is called a discharge. Most lenders charge a discharge fee of $150-$400 to process the paperwork. The process takes 2-4 weeks in most cases.
If you are paying off one loan by refinancing to another lender, the discharge and new loan settlement happen simultaneously. Your broker coordinates this so you do not need to manage it yourself.
If you are on a fixed rate and want to pay off or refinance before the fixed period ends, you will likely face a break cost. The calculation is complex - it depends on the remaining fixed term, the loan balance, and how wholesale rates have moved since you fixed.
Break costs are not always large. If rates have risen since you fixed, the break cost may be zero. If rates have fallen, it could be substantial. Always request a break cost estimate from your lender before making a decision.
Whether you want to pay off faster, refinance, or understand your discharge options - book a free chat and we will model the numbers for your specific loan.
Your loan term directly affects your minimum repayment and total interest cost. A shorter term means higher repayments but less total interest. A longer term means lower repayments but more interest over the life of the loan.
On a $500,000 loan at 6%: a 25-year term costs $3,222/month. A 30-year term costs $2,998/month (saving $224/month but costing $58,000 more in total interest). A 35-year term costs $2,853/month but adds another $50,000+ in total interest on top of that.
The practical strategy: take a 30-year term for the lower minimum repayment (which helps you pass serviceability), but pay as if it is a 25-year loan. This gives you safety margin if your income drops, while still paying off faster when things are normal.
A discharge fee is the administrative cost your lender charges to release the mortgage from your property title when you pay off your loan. Most lenders charge between $150 and $400. Some lenders also charge a settlement fee. These are standard costs and cannot be avoided.
If you are on a fixed rate, paying off early (including refinancing to another lender) incurs a break cost. Break costs can range from a few hundred dollars to tens of thousands, depending on how much time is left on your fixed term and how far rates have moved since you fixed. Always get a break cost quote from your lender before proceeding.
The most effective strategies are: keep your repayments the same when rates drop instead of reducing them, use an offset account to reduce your interest daily, make fortnightly instead of monthly repayments (this gives you one extra month of repayments per year), and put any lump sums (tax returns, bonuses) straight into your offset or as extra repayments.
Most borrowers choose 30 years because it lowers the minimum repayment and helps pass the lender's serviceability test. But the best strategy is often to take a 30-year term and make voluntary extra repayments as if it were 25 years. This gives you flexibility if your circumstances change while still paying off faster in practice.