Fortnightly payments can make a big difference
Added on by Etairos Accounting
One of the easiest ways to pay down your mortgage faster is to make your loan repayments fortnightly instead of monthly. If your salary or wages get paid weekly or fortnightly you’ll also find this is a convenient way to make repayments. By splitting your mortgage payment in two and paying more often, you could cut years off your loan term and save a lot of money in interest.
How does this work?
There are 26 fortnights in a year. By paying fortnightly, you will be effectively making the same as 13 monthly repayments every year instead of the required 12 under your loan contract. You get to pay more on your loan without making a big impact on your budget. Over a 30-years, this could shave up to 4 years off your loan term and save you several thousand dollars in interest.
