Fortnightly vs monthly home loan repayments

There is a benefit to making your home loan repayments more frequent and it shows in the term of your home loan and the interest paid. Take a look at the difference between fortnightly rather than monthly repayments below:

  • Mortgage = $300,000.
  • Interest rate = 4.24% p.a.
  • Minimum monthly repayment = $2000.
  • Annual fees = $0.
Repayment Frequency    

Repayment Amount

Total Annual Repayments   



($2000/2 fortnights a month)     


($1000*26 fortnights)





($2000*12 Months)



  • $15,814 is saved in interest over the life of the loan.
  • The term of the loan decreases by 2 years. (From 17 years and 11 months to 15 years and 11 months.)

The value in this strategy is the overly simplified math. We estimate that there are two fortnights in a month, when in fact there are slightly more days than this. The slight increase in repayments over the course of the year isn’t likely to have a negative impact on your everyday expenses, but it can make a big difference to your loan repayments over the long term.

Figures calculated based on a loan amount of $300,000, an interest rate of 4.24% p.a. and no annual fees. Figures are in today’s dollars, rely on assumptions and are estimates only. Calculations were made using the ASIC MoneySmart ‘Mortgage calculator’. Refer to the MoneySmart website for the full range of disclaimers and assumptions:!how-can-i-repay-my-loan-sooner.