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# Fortnightly payment calculator

## By making a fortnightly payment instead of a monthly one, you can save a tonne in mortgage interest and own your home sooner. Here's how.

Changing your home loan repayments from monthly to fortnightly can make a massive difference in the amount of interest you pay and time spent paying your loan off.

This is because there 12 months in a year but there are 26 fortnights. By switching to fortnightly payments you'll end up making an extra monthly payment each year, paying off more of your home loan and freeing you from debt faster.

Try it out for yourself in the calculator below.

### How to use the fortnightly repayment calculator

Say you have a loan of \$400,000 charged at 2.75% over 30 years. Your monthly repayments would be \$1,632.96 with an annual repayment of \$19,595.52.

If your lender calculates your 26 fortnightly repayments by halving your monthly repayments, you’ll pay \$816.48 every second week for an annual total of \$21,228.48. This equates to an extra payment of \$1,632.96 a year.

This means you’ll pay off your loan three years and five months earlier and save \$23,920 in interest.

There’s a catch though. Not every lender calculates repayments like this.

### True fortnightly repayments versus bi-monthly

Here's what one expert says you need to watch out for.

#### Glenn Braganza

Glenn Braganza from 1st Choice Financial in Sydney’s Inner West, says you should be aware of how lenders will calculate repayments before you change them to fortnightly.

"Some banks will allow you to change your repayment frequency, but they’ll take your monthly repayment multiplied by 12 months and divided by 52 weeks. Then they’ll multiply this by two for fortnightly payments."

If a lender decides to calculate the repayment like this you’ll pay a lower amount each fortnight, putting you back at square one. In our example this would mean you’d pay \$830.15 every fortnight rather than \$899.33.

According to Braganza even if you change your repayments to 'true' weekly repayments, you can still save around \$400 over the course of the loan.

"The problem occurs when you ring up a lender, because some lenders by nature will calculate it their own way and there's no two ways about it. So if you ring the Commonwealth Bank they’ll calculate it by halving the monthly repayments and do that. But some lenders will calculate a true fortnightly repayment," he says.

Check how your lender will calculate fortnightly repayments. If you start paying fortnightly, you could be in the fast lane to paying off your mortgage too.

To see how much your repayments would be normally, use our home loan repayment calculator.

### Compare your mortgage options today

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Name Finder Score Interest Rate p.a. Comparison Rate p.a. Fees Monthly Payment
Principal & Interest20% min. depositOwner-occupierRefinance Only
Principal & Interest20% min. depositOwner-occupierRefinance Only
Product Name Unloan Variable Home Loan variable rate Principal & Interest 5.99% 5.90% \$10,000 \$10,000,000 30 years 80% Yes No No No No Yes
Finder score
9.1
Interest Rate
5.99%
Comparison Rate
5.90%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$900
Principal & Interest20% min. depositOwner-occupier
Principal & Interest20% min. depositOwner-occupier
Product Name Macquarie Bank Basic Home Loan variable rate Principal & Interest 6.19% 6.21% \$150,000 \$10,000,000 30 years 80% Yes No Yes No No Yes
Finder score
8.4
Interest Rate
6.19%
Comparison Rate
6.21%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$919
Principal & Interest20% min. depositOwner-occupier
Principal & Interest20% min. depositOwner-occupier
Product Name IMB Budget Home Loan variable rate Principal & Interest 6.14% 6.17% \$10,000 N/A 30 years 80% Yes No Yes No Yes Yes
Finder score
8.5
Interest Rate
6.14%
Comparison Rate
6.17%
Fees
Application: \$449
Ongoing: \$0 p.a.
Monthly Payment
\$914
\$2,000-\$4,000 cashback
Eligible refinancers can get up to \$4,000 cashback when switching their loan to IMB. Loan value criteria applies. Other terms and conditions also apply.
Principal & Interest10% min. depositOwner-occupierOffset account
Principal & Interest10% min. depositOwner-occupierOffset account
Product Name loans.com.au Solar Home Loan Variable rate Principal & Interest 5.99% 6.51% \$50,000 \$1,500,000 30 years 90% Yes Yes Yes Yes
Finder score
9.1
Interest Rate
5.99%
Comparison Rate
6.51%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$900
Principal & Interest30% min. depositOwner-occupierOffset account
Principal & Interest30% min. depositOwner-occupierOffset account
Product Name Homestar Star Classic Variable Rate Home Loan variable rate Principal & Interest 5.99% 5.99% \$150,000 \$2,000,000 70% No Yes Yes No No Yes
Finder score
9.1
Interest Rate
5.99%
Comparison Rate
5.99%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$900
Showing 5 of 63 results

### What is Finder Score?

The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best home loans for cashback, you can see how each home loan stacks up against other home loans with the same borrower type, rate type and repayment type. We also take into consideration the amount of cashback offered when calculating the Score so you can tell if it's really worth it.

Disclaimer: It is advised that borrowers speak with a mortgage broker or accountant regarding their home loan structure and repayment frequency to ensure that it will suit their financial situation.

Written by

#### Marc Terrano

Publisher

Marc Terrano is a lead publisher and growth marketer at Finder. He has previously worked at Finder as a publisher for frequent flyer points and home loans, and as a writer, podcast host and content marketer. Marc has a Bachelor of Communications (Journalism) from the University of Technology Sydney. He’s passionate about creating honest and simple reviews and comparisons to help everyone get value for money. See full bio

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