Choosing how often you repay your home loan seems like an admin decision. But depending on how it's set up, it can take years off your mortgage.
The trick behind fortnightly repayments
There are 12 months in a year but 26 fortnights. If you pay half your monthly repayment every fortnight, you make 26 half-payments, which equals 13 monthly payments a year.
That extra payment each year goes straight to principal.
How much does it save?
Loan: $600,000, 30 years, 6.49%.
- Monthly repayment: about $3,788
- Fortnightly (half monthly): about $1,894
Paying fortnightly this way could:
- Pay off the loan in about 24 years instead of 30
- Save around $175,000 in interest
The catch: how your lender calculates it
Some lenders calculate a "true" fortnightly repayment, which is the monthly repayment × 12 ÷ 26. That's about $1,748 on the same loan. Paying that amount only gives you a small saving from more frequent payments, not the big saving above.
To get the full benefit, set your fortnightly repayment to half the monthly amount, or ask your lender to do so.
Weekly repayments
The same logic applies. Paying a quarter of the monthly repayment every week means 52 quarter-payments, again equal to 13 monthly payments a year.
Does frequency itself reduce interest?
A little. Most lenders calculate interest daily and charge it monthly. Paying more often reduces the average balance slightly. But the main benefit comes from the extra payment each year, not the frequency itself.
Match it to your pay cycle
Many people are paid fortnightly. Aligning your repayments with your pay makes budgeting easier and means the money leaves your account before it can be spent elsewhere.
If you have an offset account, another approach is to have your pay land in the offset and make monthly repayments. The money reduces interest while it sits there.
Frequently asked questions
Can I switch to fortnightly repayments?
Most lenders let you change frequency online or over the phone.
Do fixed loans allow fortnightly repayments?
Usually yes, but extra repayments may be capped, so the 13th payment could hit the limit on a large loan.
Is it better than just paying extra monthly?
It's the same idea. Paying an extra month a year saves roughly the same whether you do it fortnightly or as a lump sum.
Want your repayments set up to save the most? Call Finfident on 0424 545 654.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.