“Where people will have the highest saving impact on their home loans is if they pay inflated fortnightly repayments,” says Mallia. “That is: paying exactly half of what the monthly repayments on that loan would be.”
How does that work, exactly? Of course, there are 12 months in a year, but that doesn’t mean there are 24If you halve your monthly repayments and pay every fortnight, you’re a whole month ahead on your loan each year. A welcome glitch, thanks to the Gregorian calendar.This means you would be paying the equivalent of 13 monthly repayments as opposed to the 12 you would with a monthly repayment frequency.
“I know it’s a delicate time, where people are struggling to make their mortgage repayments, and they’re perhaps looking at ways they can decrease what they pay rather than increase. So, a fortnightly repayment won’t be right for everyone.”