5 Ways to Cut Your Mortgage Without Refinancing

About $364 a month. That is what the four RBA rate rises of 2026, in February, March, May and September, add to a $600,000 variable rate mortgage with 25 years left (Canstar, 29 September 2026). The cash rate has been 4.60% since 30 September 2026, and lenders passed the September rise on in full from 8–9 October. As at 19 October 2026, the RBA's next decisions are due on 3 November and 8 December. If refinancing does not suit you right now, these five steps can cut what you pay, most of them this week.

Refinancing gets the most attention. But if you are partway through a fixed term, have a loan-to-value ratio (LVR) above 80% (less than 20% equity), or don't have time to switch, there are still moves to make with your current lender.

The examples below use a 6.5% variable rate. That is about the average rate on existing owner-occupier loans once the September rise is added: the RBA's figure was 6.24% in August 2026, before the rise.

Strategy 1: Put Your Salary in an Offset Account

A mortgage offset account is a transaction account linked to your home loan. According to ASIC's Moneysmart, the balance in your offset account reduces the amount of your loan that is charged interest — dollar for dollar.

Timing helps: have your pay go straight into the offset on payday. Interest is worked out on the daily balance, so every day the money sits there lowers that day's interest, even if you spend it later in the month.

Example: Melissa's $7,500 monthly pay goes into her offset account on payday, and she spends it steadily over the month. On average about $3,750 of it sits there, which saves about $20 a month in interest at 6.5%. Her $20,000 of emergency savings in the same account takes the saving to about $129 a month, or about $1,540 a year.

Strategy 2: Switch to Fortnightly Repayments

This is one of the simplest changes you can make. When you pay half your monthly repayment every two weeks, you make 26 half-payments a year — the same as 13 full monthly payments instead of 12.

That extra repayment goes straight off the balance each year, so less interest builds up over the life of the loan.

Example: On a $600,000 loan at 6.5% over 30 years, switching from monthly to fortnightly repayments cuts the loan term by almost 6 years and saves about $176,000 in interest, if the rate stays at 6.5%. No rate change. No refinancing.

Check how your lender sets the fortnightly amount. If it halves your monthly repayment, you get the extra payment. If it divides a year of monthly repayments by 26, you pay the same total each year and the saving is small.

Strategy 3: Negotiate Your Rate — Without Switching

Your lender's retention team deals with customers who are thinking of leaving. It can often offer a lower rate than the regular service line.

The approach is simple: call your lender, tell them you have a written offer from a competitor, and ask what they can do. You do not need to actually be ready to switch — just willing.

How to prepare:

1. Check Canstar or Finder for the lowest current rate you qualify for based on your LVR.
2. Call your bank's home loan line and say: "I have a competitor offer at [rate]. I would prefer to stay, but I need you to match it. Can I speak to the retention team?"
3. Be prepared to follow through. If they offer 0.2% and you wanted 0.5%, ask for more or book an appointment with a mortgage broker.

Example: Tom has a $480,000 loan at 6.85% with a major bank and 25 years left. He spent 20 minutes on the phone. The retention team offered 6.35%, which cuts his repayment by about $151 a month, about $1,800 a year, with no paperwork, no valuation and no new application.

Strategy 4: Make Extra Repayments Using Redraw

A redraw facility allows you to make extra repayments directly into your loan, reducing the principal and therefore the interest charged — while keeping the funds accessible if needed. According to Moneysmart, even small extra amounts make a significant difference over time.

Ways to make extra repayments:

• Tax refund: Put it straight into the loan when it arrives.
• Work bonus: Put any bonus into the loan before it gets absorbed into everyday spending.
• $50/week extra: An extra $50 a week on a $500,000 loan at 6.5% over 30 years cuts about 5 years off the term and saves about $125,000 in interest, if the rate stays at 6.5%.

Strategy 5: Request Lender Hardship Assistance

If you can't keep up your repayments, you can ask your lender for a hardship variation: a change to your loan, or a pause or cut in repayments for a while. Every lender has a hardship team. According to Moneysmart, your lender must reply in writing within 21 days and must give a reason if it says no. If you can't agree, you can complain to the Australian Financial Complaints Authority (AFCA) for free.

Hardship help can include:

• Pausing or reducing repayments for a few months
• Switching to interest-only repayments for a period
• Extending the loan term, which lowers each repayment by spreading the loan over more years

Critical: Contact your lender before you miss a payment. A hardship arrangement is noted on your credit report for 12 months, but it can't be used to work out your credit score. A missed repayment can lower it. The National Debt Helpline (1800 007 007) offers free financial counselling and can help you work out a plan. The full steps are in our guide to getting hardship help with your mortgage.

Roy Morgan estimated 1,718,000 Australians (32.3% of mortgage holders) were at risk of mortgage stress in the three months to August 2026.

Your 5-Strategy Action Plan

If your rate is 0.5% or more above what new customers are offered, refinancing may save more than all five. See when refinancing pays and the current refinance cashback offers. For what the 2026 rate rises mean for your repayments, see RBA Hikes to 4.60%: What It Means for Your Mortgage.