Why Pay Mortgage Fortnightly?

When you make biweekly payments, you could save more money on interest and pay your mortgage down faster than you would by making payments once a month. ... By making payments every two weeks, you'll make 26 payments per year instead of 12.

Why are fortnightly repayments better?

If you pay your mortgage repayments weekly or fortnightly, you are paying down the principal amount faster, and thus reducing the interest that will accumulate. Interest is calculated on the principal balance, so with less principal owing, there's less interest payable.

Should I pay my mortgage fortnightly?

Interest on mortgages tends to accrue daily, so repaying weekly will save you more interest than repaying fortnightly, but not by much. But both generally tend to be better than paying monthly. ... If you get paid fortnightly, then ask your lender if you can pay your mortgage every two weeks on that day.