Mortgage repayment frequency –Weekly, fortnightly or Monthly?

Hi Guys,


This is my first post so forgive me if this question has been previously asked.


My IP loan is set up as interest only with an offset account and I pay the interest bill monthly.


Will I see and savings if I change the payments to weekly repayments ? or will it not matter cause its interest only ?


Thanks in advance

 

Pay as late as you can. Money in offset account longer reduces interest repayments which are calculated on a daily basis. Compound this over time and you got yourself huge savings.

Also, if you have the choice of getting paid weekly/fortnightly/monthly, get paid asap into offset.

 

If the money is coming from the offset it won't matter at all. If it is new money then every day counts.

 

1. Repayments on interest only loans must be monthly. I'm not aware of any lender that allows weekly or fortnightly repayments.

2. If the money for the repayment is in an offset account anyway, there's no financial benefit to a different payment schedule.

 

Just incase you're still unsure after the last 2 posts - doesn't matter, funds in offset already reducing the interest. Your loan is interest only. Just have as much as possible in the offset.

 

Hi All,

Thanks for your quick replies and for clearing that up for me.
Yes the money for the repayment is coming from offset so it makes no difference.
I will keep it as monthly repayments.

Thanks again :- )

 

If you're storing funds in the offset the repayment frequency is not important as the same interest saving is made regardless.

In reality interest only loans are required to be monthly by lenders, they don't offer weekly or fortnightly payment options.