How fortnightly repayments can reduce the life of your home loan
If you’re currently paying off your home loan on a monthly basis, there may be an opportunity for you to save both money and time from your loan by switching to fortnightly repayments. By making 26 fortnightly home loan repayments instead of 12 monthly payments, you’re essentially making one additional monthly payment off your loan a year, shortening the life of the loan and lowering the amount you need to pay.
This calculator uses your initial loan value, current interest rate and the number of repayments you have already made on your loan to calculate your potential savings. You’ll be able to see in the results that making more frequent repayments – fortnightly and weekly – enables you to pay off your mortgage more quickly and reduce the total amount repaid on the loan.
A mortgage broker can sit down with you and assess if your home loan allows you to adjust your regular repayments or make additional repayments. If you’d like to know how additional repayments can further affect the length of your loan, see our extra home loan repayments calculator or get in contact with a Mortgage Choice broker today.