Fortnightly vs Monthly Mortgage Repayments: Which is Better?

How to decide on choosing a mortgage repayment frequency?

There are some factors that you need to consider when choosing a mortgage repayment frequency. The following factors can help you choose the right repayment frequency:

  • Income cycle: How often you get paid will decide the repayment frequency. For example, if you get paid weekly, then you can choose weekly mortgage repayment, if you get paid fortnightly or monthly, then choosing fortnightly or monthly repayment frequency will make sense. Your income cycle can better help you choose the right mortgage repayment structure.
  • Cash flow and budgeting: If you make weekly or fortnightly repayments, then you have to manage cash flow more frequently. On the other hand, if you prefer a less in-depth methodology to budgeting, you can choose monthly repayments. If you choose weekly or fortnightly repayment frequency, then you can pay off your mortgage faster.
  • Interest savings: Repaying more often can save you on interest, but it’s crucial to decide the right repayment schedule. You should pay attention to your financial circumstances before finalising the repayment schedule. Mortgage brokers at Star Homeloans can help you figure out the interest savings depending on your payment schedule.
  • Loan terms & lender flexibility: Certain lenders may offer repayment plan flexibility. However, some lenders may expect you to stick to a specific timeline. That’s why it’s crucial to consider your loan term and talk about the repayment schedule.




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