Is Repayment Frequency a Mortgage Game Changer?
It’s a question that comes up often—and at first glance, it sounds like an amazing financial hack. Change how often you make mortgage repayments and save thousands in interest, right?
Well… not quite.
For an $800,000 mortgage at 5.5%, simply switching your repayment frequency might save you less than $2,000 over 30 years. And if you already have your income flowing into a revolving credit loan, the impact is even smaller.
Where did this myth come from?
Somewhere along the line, a marketing genius (or let’s be honest—maybe a creative spin doctor) realised that paying half your monthly repayment every fortnight sounds clever. And because there are 26 fortnights in a year—not 24—you actually end up making an extra repayments each year.
Soooo, yeah if you make extra repayments, you save interest.
So what repayment frequency is best?
Truthfully, the best repayment frequency is the one that gives you the most clarity and control over your spending. Whether that’s weekly, fortnightly, or monthly—go with what helps you stay on top of your budget and avoid unnecessary lifestyle creep.
Here’s the real game changer:
Extra repayments. They’re powerful. Even small, regular overpayments can shave years off your mortgage. And when you see the numbers projected out, the long-term gain can be seriously motivating. For the same home loan as above an additional repayment of $50 per week, would mean a saving of around $100,000 in interest and three years over the term of the loan.
We have tools that can show you exactly how much of a difference those repayments make—and how to structure them safely and strategically.
