Shave and save

Published on: 04 Nov 2022


Increasing your repayment frequency
can result in large savings
over the life of a home loan

One simple strategy could shave years off your home loan, saving you thousands of dollars in interest along the way


With interest rates and the cost of living on the rise, homeowners have been looking at all manner of ways to make the household budget stretch a little further .


But there’s one easy thing borrowers can do now that will save them a small fortune over the long run. And it’s possible your lender may not have even mentioned it.


Increase your repayment frequency


Simply by paying your monthly home loan premium in fortnightly instalments could wipe between 4 and 5 years off the term of your loan. It’s simply because, in effect, you get a whole month’s extra payment per year. Instead of 12 monthly payments, you’re making 26 fortnightly payments.


Since lenders calculate interest daily, based on the outstanding balance of your loan, over time, the savings really mount up. Let’s crunch some hypothetical numbers:







In these calculations, we’ve assumed a home loan on a variable interest rate of 4.2%, paying principal and interest, with a 30-year loan term.


It’s also a bit of a win-win. Chances are, you are paid fortnightly, so paying half the home loan around pay days might make it a little easier to manage the household finances.


As always, if you have any questions at all regarding buying a house at Oaklands Green, please contact Richard Joy, our Sales Director –


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