How Extra Repayments Can Save You Years on Your Mortgage
From Aaron’s YouTube: “Sorry old timer- here's the exact numbers for 2026”
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Posted 15 December 2025
The short version
- Paying an extra $970/month on a $500k loan at 5% saves 13 years.
- A $1.92k extra monthly payment on a $1m loan achieves the same 13-year saving.
- For a $1.3m mortgage, $2.5k extra per month cuts 13 years off your term.
- These numbers assume a 5% rate - your actual savings may vary as rates change.
The real impact of extra repayments
Most people know that making extra mortgage payments saves interest, but few realise just how many years it can shave off your loan. Aaron breaks down exactly what it takes to cut 13 years from different mortgage sizes - something many homeowners would jump at if they realised it was possible.
These aren't theoretical numbers. At today's approximate 5% interest rate (which will fluctuate over time), paying just $970 extra each month on a $500,000 mortgage means you'd own your home 13 years sooner. That's the power of consistent overpayments.
What bigger mortgages require
The numbers scale predictably with larger loans. For a $1 million mortgage, you'd need to find an extra $1,920 per month to gain those same 13 years of freedom. At $1.3 million, that figure rises to $2,500 extra each month.
While these amounts might sound steep, many homeowners reach this capacity later in their mortgage as incomes rise. The key is understanding that every extra dollar goes directly against your principal, accelerating your progress.
Rates will change - your strategy shouldn't
Aaron's quick to point out that these examples assume a 5% interest rate that won't stay fixed for your entire mortgage term. As rates move up or down, your exact savings will vary slightly - but the principle remains rock solid.
The takeaway? Decide what monthly overpayment you can commit to (even if it's smaller than these examples) and automate it. Watching years disappear from your mortgage term is one of the most satisfying financial achievements you'll experience.
This is general information, not personalised financial advice. For advice on your situation, talk to Aaron.
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