Fortnightly vs. Monthly: Which Mortgage Payment Schedule Works Best for You?

fortnightly mortgage repayments

When it comes to tackling your mortgage, even the smallest tweaks can lead to sizable savings over the long haul. One such strategy is throwing some borrowers for a loop. The fortnightly repayment schedule.

Monthly Mortgage Repayments

Don’t worry, we’re not about to dive into complex mortgage jargon that’ll have you zoning out faster than a night of Netflix bingeing. Let’s keep things refreshingly simple.

On a monthly mortgage repayment plan, you quite literally make a single payment once every month to chip away at your home loan balance. Pretty straightforward stuff.

Fortnightly Mortgage Repayments

Where fortnightly repayments get interesting is in the frequency. By dividing your scheduled monthly instalment in half and paying that amount every two weeks, you’ll actually end up making the equivalent of one extra monthly payment each year.

Hear us out: There are 26 fortnights in a year. So 26 half-payments equates to 13 full monthly instalments annually instead of just 12. It’s cheeky math working in your favour to accelerate your mortgage freedom date.

Couple this with improving your mortgage interest rates and you may see years disappear off your loan.

Why Switch to Fortnightly?

The impact? Paying off your loan years sooner while saving a fortune in interest charges along the way – easily into the tens of thousands over a 30-year term for a typical mortgage.

Of course, the fortnightly approach isn’t a one-size-fits-all solution. It requires aligning your cash flow cycle to ensure you’ve got funds available every two weeks instead of just monthly. For some, this scheduling switch could spell disaster and lead to missed mortgage payments.

Making Informed Choices

That’s why at OneCorp, we always take a personalized approach to assessing which mortgage repayment method makes sense for your unique situation and financial comportment. Because there’s no point shaving years off your loan if the strategy causes unnecessary stress.

Our experienced strategists and our partners will crunch all the numbers, model out different scenarios, and calculate the projected savings to demonstrate the pure power of going fortnightly. We’ll also provide expert guidance on budgeting and cash flow management to set you up for success.

At the end of the day, checking the fortnightly box could unlock a wealth-building superpower by freeing you from mortgage debt sooner. And who doesn’t want the financial freedom to focus on achieving bigger goals? It’s just one example of how a few simple shifts can make a massive difference in your journey towards prosperity.

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