Abstract: An efficient loan repayment mechanism applicable to residential property mortgage loans, or any other kind of loan, such as vehicle loans, home improvement loans, etc. Advantageously, the system and method may be utilized to more quickly repay a loan even without any increase of the out-of-pocket expense from the borrower. Preferably, a transaction account is established such that income may be immediately diverted towards prepayments of the loan, thereby decreasing the remaining principal and the associated interest accrual, and the transaction account thereafter is used to pay for ongoing expenses, typically generating or maintaining a debit balance in the transaction account.