Mortgage Repayments - weekly, fortnightly or monthly?
While the general rule of thumb is to match your repayments to your income frequency, if you want to save on interest or pay your loan off quicker, that might not be the best option.
Here, we take a look at repayment frequency options to help you choose the right repayment frequency for you.
WEEKLY
If you get paid weekly, then making your mortgage payments weekly is probably the best option.
By making more frequent payments, you will usually be saving on interest costs, as interest is usually calculated daily on the outstanding balance – so by paying weekly, you are paying down the principal amount faster. It might not seem like a lot, but it does add up…
By making four weekly payments, you will save interest compared to paying once a month. However, it does depend on how your mortgage repayments are structured to be repaid.
If they are structured to be paid weekly, then you probably won’t be making much in the way of interest savings, as that will already be factored into the total interest cost; if, however, your payment schedule is set up as monthly or fortnightly, then making more regular payments should save you interest.
FORTNIGHTLY
If you get paid fortnightly, but have your mortgage repayment frequency set up as monthly, you could then pay half the monthly mortgage payment each fortnight (which will save interest) or the full amount every second fortnight and pay your other bills on the other fortnight.
This may be most beneficial if your other bills are a similar amount to the monthly mortgage payment.
If you do make your payments fortnightly, but your loan schedule is monthly, paying half your required monthly payment each fortnight will provide two benefits – you will save on interest from making more regular payments AND your loan could be paid off quicker, as you will end up making an additional repayment each year (as there are 26 fortnights in a year, which is equal to 13 monthly payments).
MONTHLY
While making one monthly payment may not give you the potential interest savings that more frequent repayments can, it does make sense if you only get paid monthly – because making your payments late will cost you more in interest and fees in the long run.
However, if you do only make your payments monthly, paying a little bit extra each time will help you to reduce your interest costs and your loan term.
Poll: Should drivers retake the theory test every 10 years?
Drivers get where they need to go, but sometimes it seems that we are all abiding by different road rules (for example, the varying ways drivers indicate around a roundabout).
Do you think drivers should be required to take a quick driving theory test every 10 years?
Vote in the poll and share any road rules that you've seen bent! 😱
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49.7% Yes
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48.4% No
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1.9% Other - I'll share below
Tai Chi October - December 2024
Hi, I'm Andrew Hardwick, Tai Chi Instructor and member of NZ National Tai Chi Chuan Association Incorporated (NZNTCCA). The name of my wellness-focussed Tai Chi class is Not Strictly Tai Chi. The quirky name is a humorous twist on the name of shows like "Strictly Come Dancing", and from the fact that (a) I'm not strict and (b) If I see an exercise I think would provide a health benefit to my Tai Chi students, I will add it to my class offerings.
My Upper Hutt venue is Te Kupenga o Rongomai - Maidstone Sports Hub. Classes are in school term times only, and are open to all ages.
So far in 2024 we've had ages ranging from Mums attending while their kids are at school, through to retired people looking for healthy exercise.
No experience necessary. Experienced and beginners equally welcome
School Term 4 classes will be on the following dates
Wednesday evenings, from 7pm - 8pm
October 16th
October 23rd
October 30th
November 6th
November 13th
November 20th
November 27th
December 4th
December 11th
December 18th
Thursday mornings, from 10am - 11am
October 17th
October 24th
October 31st
November 7th
November 14th
November 21st
November 28th
December 5th
December 12th
December 19th
Enquiries welcome on 021 153 2508
Andrew Hardwick - Tai Chi Instructor
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