The Power of an Extra $100 – How Small Repayments Create Big Wins
What if the difference between a 25-year mortgage and a 20-year mortgage was just $100 a month?
In the ADF, small habits lead to big results. The same principle applies to your mortgage. One of the most underrated—and most effective—ways to smash your loan faster is as simple as adding an extra $100 to your repayment each month.
It sounds too good to be true, but this method, championed in The Unofficial ADF & Veterans’ Guide to Paying Your Home Off FAST!, can save you tens of thousands in interest and cut years off your loan term. And the best part? It doesn’t require a pay raise, a second job, or major sacrifice, just consistency.
Why an Extra $100 Matters More Than You Think
Your mortgage repayment is made up of two parts:
- Interest – what you pay the bank for the privilege of borrowing.
- Principal – what actually reduces your loan.
In the early years of your mortgage, most of your repayment goes towards interest. So when you throw in an extra $100 each month, you’re not just adding to your repayment—you’re directly reducing your principal. That’s the part that matters.
Example:
Let’s say your monthly mortgage repayment is $2,500. Of that, maybe only $500 is going towards your principal. Add another $100, and you’ve just increased your principal repayment by 20%. That’s 20% faster progress towards owning your home.
Compounding Wins Over Time
The real magic happens over time. That extra $100 per month doesn’t just reduce your loan by $1,200 a year—it shortens your loan term significantly and snowballs your interest savings.
By adding $100 per month:
- You could cut 5 years off a 25-year loan.
- You could save tens of thousands in interest.
- You stay ahead of schedule and in control.
And if you make it automatic, you’ll hardly notice the difference—but your future self will thank you.
This Strategy Is Perfect for ADF Members
This tactic is ideal for ADF personnel and veterans because
- You’re already used to structure and discipline.
- You’re paid regularly and often biweekly (stay tuned for our blog on how that helps too).
- You may receive tax returns, allowances, or bonuses that can feed into this method.
Set up your extra payment like a direct debit. Treat it like your Netflix subscription—automatic and non-negotiable.
Practical Steps to Implement the $100 Strategy
- Review Your Statement:
Check how much of your monthly repayment goes towards principal. This helps you see the immediate impact of your extra payments. - Add a Buffer, Not a Burden:
Start with $100, but if you can manage more (e.g. $150 or $200), even better. Choose a figure that feels sustainable. - Automate It:
Ask your lender to set up a recurring additional payment to your mortgage. If they can’t, use your online banking to do it manually. - Track Your Wins:
Check your balance every few months and see how much faster your loan is shrinking. It’s incredibly motivating.
Bonus Tip: Combine This with Other Strategies
The real acceleration happens when you stack this method with others from Daimien’s guide. Imagine combining this with
- Fortnightly repayments (you’ll make an extra payment each year)
- Your DHOAS subsidy
- Surplus rent from investment properties
The results? Rapid debt reduction and real financial freedom.
Small Steps, Big Results
Adding an extra $100 per month might feel like a drop in the ocean, but it’s one of the most effective ways to take control of your mortgage. Over time, it leads to big savings, shorter loan terms, and increased equity. It’s not flashy—but it works.
You don’t need to win the lottery to pay off your home faster. You just need to start. One hundred dollars at a time.
Take Action Now
Want help putting this strategy into action—plus 20 other game-changing tips?
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