It's possible to get home loans with interest rates discounted by up to half a percentage point lower than the standard variable rate. The big banks and some smaller lenders offer a package of discounts and bonuses to those who conduct all their planning with them. These packages require a minimum loan of $150,000 -$250,00, using the lender's credit card, opening a transaction account, and having an above-average income. An annual fee for the package may apply. Borrowers can save nearly $19,000 in interest on a $200,000 loan over 25 years if the rate is cut from 7.07 per cent to 6.57 per cent. This will reduce monthly repayments by $63 and borrowers can save more than $25,000 in interest if the monthly $63 saving gets put towards the loan at the lower interest rate. The package may also include fee-free planning and discounts on products such as margin loans, insurance and personal loans. The packages are generally not promoted actively: the customer has to seek them out.

The more you pay off your home loan, the more of the property you own or the more 'equity' in the property you build up. With a more flexible planning system these days, it is possible to borrow against this equity for further investment; a second property, shares etc. The advantage of borrowing against this equity rather than taking out a personal, investment or business loan is that the interest rate will invariably be lower – the better the asset you put up as collateral, the better the terms a lender will offer. Nothing beats bricks and mortar security (in this case, your home).

Disciplined borrowers can make use of the increasing range of line-of-credit loans, also called salary account or all-in-one loans, which offer the chance to make every spare dollar work to reduce your home loan. These loans allow your income to be paid directly into the loan account to reduce the loan outstanding sooner than waiting for the repayment due date. You are also effectively making larger repayments because you only withdraw the money you need to live on each month, leaving all surplus cash in the loan account to reduce the balance. In this way, the loan can be paid off much quicker and thousands in interest saved. Line-of-credit borrowers must be disciplined, however, and not withdraw more money over time than is going in. Income you bank must exceed your total expenses by at least the value of your principal-and-interest loan repayment before there is any financial benefit.

Offset accounts not only save you home loan interest, they help beat the taxman as well. Savings in offset accounts are subtracted from the outstanding loan amount each month so interest is charged only the net amount. Interest paid in cash to your savings account is taxable, but the same interest used to offset home loan interest is not – a tax effective way to reduce you home loan. However, to get the most from an offset account, look for accounts which offers a 'full offset', ie. paying interest at the same rate charged on your home loan. Redraw facilities and line-of-credit loans make use of your savings in much the same way.

If you smoke a pack of cigarettes a day, it is costing you almost $3000 a year. Quit, and put the daily saving of $8 or so aside and pay an extra $240 each month off your mortgage. Use BankChoice's extra repayments calculator to see how much you can save and how quickly you’ll repay the mortgage (but it won't tell you how much longer you will live as a result).

Converting your monthly repayment into two fortnightly or four weekly payments can reduce the term of your loan in two ways: because there are more than two fortnights or four weeks in every month, dividing your original monthly repayment into two or four means you actually pay more over the course of a calendar month.

Use cash savings to help pay off your loan quicker. Remember the old saying 'a dollar saved is a dollar earned'? If you have a home loan at 7 per cent, every extra dollar you pay off the principal is another dollar you are not paying 7 per cent on each year. If you instead put that extra dollar into a savings account you are only going to earn 2 or 3, perhaps 5 per cent at the most. Therefore putting savings into your loan earns you twice as much as a savings account.

If monthly repayments drop because interest rates have fallen, try to maintain the old repayment levels. This means you will pay off more of the principal with each repayment, reduce the term of your loan and the total amount of interest paid.

When taking out a loan make sure it offers the flexibility to meet the changing circumstances you will undoubtedly experience over the 10 to 25 years of your loan. The ability to make extra repayments, redraw extra repayments, fix the rate on a portion of the loan, or refinance to another loan if need be are all features to be considered. Most fixed term and rate loans and some basic loans don't allow you to make additional repayments, or charge a penalty for doing so. Make sure you understand the terms and conditions before taking out your loan.

Get a feel for what's on offer across the wide range of financial providers around these days. Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.