One of the best ways to get ahead financially is to pay off your mortgage as soon as possible. The first step towards doing this is to create more surplus income; that is, the difference between what you spend and what you earn. This means either cutting back on your expenses or finding ways to increase your income.

Next, look at how your mortgage is structured. There are a number of factors to consider, including the term of the mortgage, the frequency of repayments, whether the interest rate is fixed or floating, and the type of mortgage you have. The most common types of mortgage are table mortgages where you pay back both principal and interest, lines of credit (or revolving credit) and interest-only mortgages.

There are two ways to use your surplus income to pay off your mortgage quicker. The first, and easiest way, is to increase both the frequency and the amount of your repayments. If your interest rate is fixed, check with your bank as to how to avoid paying penalties for earlier repayment. The second way is to use a combination of a small line of credit and table mortgages which have either a fixed or floating rate. Save as much as you can into your line of credit in the knowledge you can draw down the funds again if necessary. Once the balance in your line of credit is zero, draw all or most of the funds down and pay off a chunk of your table mortgage. If your table mortgage has a fixed interest rate, the repayment should be done when the fixed rate period ends. This process can be repeated until your mortgage is gone.

The keys to success are good saving, structuring your mortgages correctly and staying focused on achieving your goal.