Does Paying Your Mortgage Fortnightly Save Money?


Paying monthly vs fortnightly

As an example, imagine you take out a $400,000 loan for 30 years at an interest rate of 3.64%. Your monthly payments will be $1,827.58. Over the duration of the loan, the total amount you repay will be $657,931 including both principal and interest.

If you switch from monthly to fortnightly repayments, you’ll be paying an extra $1,827.58 each year. This will cut the time it takes to repay your loan by four years and ten months. You’ll also save $38,145 on interest charges.

Paying weekly vs fortnightly

Paying your mortgage weekly is another option for borrowers. When you choose this route you’ll be paying $456.90 on a weekly basis (using the example above). You’ll also reduce your mortgage by four years because you will be making fifty-two weekly repayments, instead of forty-eight, resulting in effectively making an additional month of repayment per year. Weekly payments pay down your mortgage the fastest of the three options. But compared to paying fortnightly, you’ll only be saving $222 on interest charges.

Monthly vs fortnightly vs weekly mortgage repayments:

$400,000 loan w/ 3.64% interest rate








Interest payable over 30 years loan term




Total loan cost




Time saved repaying loan


4 years

4 years

Interest saved




Generally, the more frequent the payments you make, the more you will save in interest over the term of your mortgage. Whether you choose monthly, fortnightly, or weekly repayments be sure ask your lender for all the calculations before you make a decision.

You can check out our home loan payment calculator to get a rough idea how much your repayments will be. 


Recommended reading

10 Steps to Buying Your First Home

Buying a first home is one of the biggest financial decisions of anyone’s life and also one of the most daunting.


What is Lender’s Mortgage Insurance?

LMI helps thousands of people each year to purchase a home who otherwise may not have satisfied individual lender criteria.


Top 5 Strategies to Save For A House

To help you get started with your saving journey, here are the top five saving tips you can use so you can finally buy your first home.

Call us on
13 10 90
Request A Call
7am - 7pm, Monday to Friday. AEST