Discover how much interest you save by making extra repayments. Compare fortnightly vs monthly payment strategies for Australian home loans.
| Scenario | Payoff date | Total interest |
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On a $600,000 loan at 6.25% over 30 years, paying just $500 extra per month saves over $140,000 in interest and cuts the loan term by nearly 8 years. Most Australian variable-rate home loans allow unlimited extra repayments without penalty.
Paying fortnightly (half the monthly repayment every 2 weeks) results in 26 half-payments per year = 13 full payments, instead of 12. This effectively makes one extra monthly payment per year and can save tens of thousands in interest over the life of a loan.