Monthly vs Fortnightly Repayments: Does It Matter?

Changing how often you make repayments can have a surprising impact on your loan. If you pay fortnightly, you make 26 half‑monthly payments per year – equivalent to 13 monthly repayments instead of 12. This effectively means one extra month’s repayment each year, which shortens your loan and reduces interest costs.

Most lenders allow you to choose weekly, fortnightly or monthly repayment frequencies. Check whether your loan calculates interest daily (most do); if so, paying more frequently can reduce the balance quicker. Your broker can show you repayment schedules illustrating how fortnightly payments can shave years off your mortgage.