By Jason Skinner
The Bellingen region has gained an experienced new voice in small business support with the arrival of Jason Skinner, a CPA-qualified accountant who has recently returned to the area to be closer to family, bringing more than 30 years of accounting expertise.
Jason spent over two decades running a highly successful accounting practice on the Gold Coast with his wife Melissa, where he built a reputation for working closely with small business owners to help them not only manage their finances but also build more profitable and sustainable businesses. His approach has always been practical and grounded in the realities of day-to-day business life — focused on outcomes that make a genuine difference to the people he works with.
Now settled back in the Bellingen shire, Jason has established Milk Bookkeeping and Advisory, a practice purpose-built for small businesses that want to get on top of their finances, streamline their administration, and get more out of their business by understanding what the numbers mean.
For local business owners seeking experienced, professional financial guidance closer to home, Jason’s arrival is welcome news. With deep expertise across bookkeeping, tax, and business advisory, and a genuine commitment to the small business community, he is well placed to support the growth and financial well-being of businesses across the Bellinger Valley.
Jason can be contacted through Milk Bookkeeping and Advisory. jason@milkbookkeeping.com.au or by phone 0400867496.
Money Matters: 3 Ways to Pay Your Mortgage Down Faster
By Jason Skinner
With the cost of living squeezing household budgets from every direction, the idea of paying down your mortgage faster might sound like wishful thinking. But the truth is, even small, consistent changes to how you manage your home loan can shave years off your mortgage and save you tens of thousands of dollars in interest.
Here are three effective strategies you can take action on right now to start saving.
1. Switch From Monthly to Weekly Repayments
This is one of the simplest changes you can make immediately— and one of the most powerful.
Most mortgages are set up with monthly repayments as the default. By switching to weekly payments, you will pay down your loan years faster and save thousands of dollars in interest, without any dramatic change to your budget.
Let’s look at an example.
On a $500,000 mortgage at 6% over 30 years, your monthly repayment is approximately $3,000. By setting your repayments to weekly, i.e., $750 — one quarter of that —, you’ll pay off your loan in approximately 24.5 years instead of 30. That’s 5.5 years cut from your loan term and approximately $124,000 in interest saved over the life of the loan. All from a simple change to your repayment frequency.
Your bank or lender can generally make this change with a simple request — it costs nothing and requires no refinancing.
One important check: confirm that your lender calculates interest on your actual daily outstanding balance and processes weekly payments correctly. Most modern variable rate mortgages work this way, but it’s worth checking the numbers before you make the switch.
2. Put Every Extra Dollar Into an Offset Account
Check with your lender about attaching a mortgage offset account to your mortgage.
Most mortgages work by calculating your monthly interest charges on the outstanding daily balance of your loan.
A mortgage offset account is a type of savings account that, instead of paying you interest, reduces the daily balance of your home loan and saves you interest.
If you have a $400,000 mortgage and $20,000 sitting in your offset account, you’re only paying home loan interest on $380,000. Every dollar in that account is effectively earning you a return equal to your mortgage interest rate, which, at current rates, is considerably better than most savings accounts offer, and it’s tax-free because you’re reducing a cost rather than earning interest income.
The strategy here is simple: keep as much money as you can in your offset account for as long as possible. This will keep your daily mortgage balance as low as possible when the bank calculates your interest.
Even a few thousand dollars sitting in your offset account consistently can add up to meaningful interest savings over the life of a loan.
3. Review Your Interest Rate Regularly And Don’t Be Shy To Ask for a Reduction
This is the strategy most homeowners never bother with — and it may be the one that requires the least effort for the return it delivers.
Lenders rarely volunteer a better rate. The mortgage market is highly competitive, and banks routinely offer sharper honeymoon rates to new customers than they charge their existing customers.
If you’ve had your loan for more than a year and haven’t asked your lender to review your rate, there is a reasonable chance you’re paying more than you need to.
By doing some market research and contacting your current lender to review your interest rate, you may be eligible for a better rate and terms.
It is much more cost-effective for a lender to keep you as an existing customer than to go out and win new customers, so it’s worth asking the question.
The numbers make a compelling case for doing this regularly.
Let’s look at an example.
On a $500,000 mortgage at 6% over 30 years, your monthly repayment is approximately $3,000, and your total interest bill over the life of the loan is approximately $580,000. If you can reduce your interest rate by 0.25% to 5.75%, your monthly repayment would drop to approximately $2,918, saving you $82 per month. Over the full 30-year term, that seemingly modest rate reduction saves you around $30,000 in interest over the term of the loan. All from a single phone call.
Make it a habit to review your mortgage rate at least once a year. Your financial circumstances change, the economic landscape changes, and the rate you agreed to when you first took out your loan may no longer reflect the savings you could achieve today.
The Bigger Picture
None of these strategies require a dramatic change to your lifestyle. Switching repayment frequency, maximising your offset account, and reviewing your interest rate regularly are all low-friction habits that work quietly in the background — but the compounding effect over the life of your home loan is anything but small.
If you’re unsure which approach best suits your circumstances, a conversation with your mortgage broker or financial adviser is a good starting point. But there is always something practical you can do to get ahead.
Importantly
The information in this article is general in nature and does not constitute financial or tax advice. Please seek professional advice tailored to your circumstances.
Jason is a CPA Accountant and the principal of Milk Bookkeeping and Advisory, located locally in the Bellingen Shire, and can be contacted at jason@milkbookkeeping.com.au.