This is one of the most common questions I get. And the answer is yes — but the reason might surprise you. It's not because fortnightly payments are inherently smarter. It's pure maths.
The number that matters: 26
There are 12 months in a year, but there are 26 fortnights. So if you take your monthly payment, halve it, and pay that every two weeks, you end up making the equivalent of 13 monthly payments per year instead of 12. That extra payment comes off your principal every single year — and over a 30-year loan, that compounds into a meaningful reduction in your loan term and the total interest you pay.
What about weekly?
Same logic. There are 52 weeks in a year, so weekly payments also deliver the equivalent of 13 monthly payments. Weekly is marginally better than fortnightly because you're reducing your balance slightly more often, and interest accrues daily. In practice though, the difference between weekly and fortnightly is small. For most people, fortnightly is the practical sweet spot.
| Payment frequency | Payments per year | Equivalent monthly payments |
|---|---|---|
| Monthly | 12 | 12 |
| Fortnightly | 26 | 13 |
| Weekly | 52 | 13 |
Does it actually suit you?
This is where I'd pump the brakes slightly. The maths only works in your favour if you can sustain the higher effective payment without stress. If you're paid monthly and switching to fortnightly creates cash flow friction, that's a problem worth solving before you commit to anything.
There's also a broader conversation worth having here. Rather than focusing purely on payment frequency, some borrowers are better served by structures that give them flexibility alongside the benefit of reducing interest — things like offset accounts and revolving credit facilities. These can achieve a similar outcome while also giving you a financial buffer you can actually access if life throws something at you. I'll cover both of those in separate posts, but they're worth keeping in mind.
A note on fixed rates: If you're on a fixed rate, your bank may restrict how much extra you can repay during the fixed term without triggering a fee. Check your terms before changing anything — it's a quick call to your adviser or bank.
The bottom line
Yes, paying fortnightly or weekly will help reduce your loan term. The mechanism is simple: you make one extra monthly equivalent per year, and that goes straight off your principal. But how you structure your mortgage matters just as much as how often you pay it. There are options worth exploring that give you the same benefit with more flexibility built in.
If you want to talk through what makes sense for your situation, get in touch.
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