A young first-time homeowner has revealed the surprising tactic she’s adopted to pay off her home loan faster: collecting discarded cans and bottles, cashing them in, and depositing the earned funds into her offset account.
Queenslander Amy Coulston recently bought her first property with her partner – and has since been exploring different ways to pay down their home loan as quickly as possible.
The 26-year-old from the Sunshine Coast has been sharing the money-saving measures she’s implemented on her social media channels, revealing that one of her methods is to collect cans for cash.
Amy told Daily Mail that she regularly spotted discarded rubbish like soft drink cans and water bottles on her daily walks with her two dogs. Always looking for new ways to save, it occurred to her that collecting them could quickly add up.
‘So far this year we’ve returned $40 of 10 cent cans,’ she said in a recent Instagram video.
She explained in the clip that even small amounts can add up to reduce her mortgage repayments over time.
In the instance of her own mortgage, Amy explained how the $40 she’d collected so far this year would equate to ‘$161 off the life of our mortgage, after it’s added into the offset account’.
‘Our [monthly] repayments are around $4,130. And $3,220 is immediately taken by interest,’ Amy explained. ‘So something simple like collecting 10 cent cans on a daily walk is one of the many little things I’m doing to chip away at it.’
First-time property owner Amy Coulston, 26, has embraced collecting cans on her daily dog walk. After converting the cans to cash, she deposits the earnings into an offset account linked to her mortgage
Amy regularly shares videos about her various money-saving side hustles on her @amycoul.money Instagram account
Aussie Home Loans Senior Mobile Broker Samantha Harvey explained to Daily Mail how utilising an offset account linked to your home loan can reduce your overall repayments over time.
‘The balance in the offset account reduces the amount of your loan that interest is calculated on,’ Samantha said. ‘For example, if you have a $500,000 loan and $20,000 in offset, you’ll only be charged interest on $480,000.’
The mortgage expert applauded any homeowner – like Amy – who regularly makes additional one-off contributions to their offset account, explaining that the smallest amounts can make a difference.
‘Interest is calculated daily, so every dollar sitting in an offset reduces interest,’ Samantha said.
‘One-off contributions, no matter how small, increase the balance in the account, meaning less of the loan is accruing interest.’
Over time, this reduces the total interest that needs to be paid and therefore can help pay off the loan sooner.
‘Even small or irregular amounts can start making a difference from day one,’ Samantha added.
Amy explained that although the amount of cash earned from collecting cans may seem insignificant compared to a hefty home loan, it helps foster a mindset where even the smallest contributions can add up over time.
Amy’s video explained how she collected cans while walking with her dog. So far this year she’s earned $40 from can collection, and deposited the funds as a one-off extra payment into her offset account
Amy has invested in a can and bottle organiser to make the process more efficient
Samantha Harvey, a Senior Mobile Broker at Aussie Home Loans, explained how even small one-off deposits to an offset account can reduce the overall amount of interest paid
‘On some walks we only find three cans – which is 30 cents – and other days we might collect enough to make a couple of dollars,’ Amy said.
‘Adding even that small amount money into the offset account, it still means less interest paid over the life of our loan.’
To make her can collection process as efficient as possible, Amy’s video also demonstrated how she’s created a dedicated sorting area.
This includes a handy wall-mounted can crusher that she bought from Amazon, as well as a can and bottle organiser sourced from the brand hiBag.
She does, however, caution that not all places accept crushed cans, so it’s important to check first with your local cash-for-cans collection service.
For Amy, collecting cans and bottles on her regular daily dog walk is a ‘win-win’: she can save money on her home loan, help beautify her local neighbourhood, and ensure rubbish doesn’t end up in waterways.
As new homeowners, Amy said she and her partner have embraced an increased awareness and understanding of ‘where your money is going and making small changes that add up over time’.
Amy also highly recommends using online mortgage calculator tools – and regularly uses one after she’s made a one-off contribution of can collection funds to her offset account.
‘Using a mortgage calculator to see how small payments add up is a great motivator.’
