Paying your home loan repayments weekly instead of monthly will save you money over the course of a year mainly because you’ll end up paying two extra weeks payments into the loan. The end result is the same for fortnightly repayments (annually an extra fortnight’s worth of repayments). There’s interest to be saved as well.
However, paying fortnightly or weekly really only works in the real world if your pay also hits your account fortnightly or weekly. If you’re paid fortnightly then make fortnightly repayments. Weekly pay, then weekly repayments. If you’re paid monthly, then monthly repayments it is.
If you’re paid monthly and make weekly repayments it means keeping money in your savings account all month in anticipation of the upcoming transfers, which means the money is vulnerable to temptation when it rears its ugly head.
In each case I’ve found it better to make the payment as soon as the money comes in or risk not having the money available when the repayment is due.
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