General information only — not financial advice. This content is intended as educational guidance. Consult a qualified financial adviser, mortgage broker, or legal professional before making financial decisions. See our full disclaimer.
The trick is simple maths. There are 12 months in a year but 26 fortnights. If your monthly repayment is $3,167, half of that is $1,541. Paying $1,541 fortnightly means you make 26 payments of $1,541 = $40,066 per year, compared to 12 × $3,167 = $36,984 per year. That's an extra
Yes, as long as the fortnightly amount is half the monthly repayment. The extra payment per year always reduces total interest and loan term. The only consideration is whether your pay cycle aligns with fortnightly payments for cash flow.
On a $1,000,000 loan at 6.22% over 30 years, switching to fortnightly saves approximately $205,000 in interest and takes about 4 years off the loan term.
Absolutely. Fortnightly payments plus additional lump sum or regular extra repayments compound the savings significantly. Use our extra repayment calculator to model combined scenarios.
Use our free calculator to get personalised results based on your specific situation. No sign-up required.