Myth Busted: Do Weekly Repayments Help Pay Off an Offset Home Loan Faster?
There’s a common belief that switching to weekly or fortnightly home loan repayments helps pay off your mortgage faster. While that’s often true for standard loans, it’s not the case with offset account home loans.
Let’s bust the myth and explain how to really get ahead with an offset loan.
💡 Do Weekly or Fortnightly Repayments Help?
The idea behind weekly or fortnightly payments is simple:
By paying half your monthly repayment every fortnight (or a quarter each week), you make 13 full monthly repayments per year instead of 12.
This extra payment can reduce your loan term and save interest — but only with standard home loans.
With an offset home loan, the frequency of your repayments doesn’t matter as much. What matters most is your offset account balance.
💰 What Is an Offset Account & How Does It Work?
An offset account is a bank account linked to your mortgage. Every dollar you keep in it is offset against your home loan balance, reducing the interest charged daily.
Example:
Loan balance: $500,000
Offset balance: $20,000
Interest charged on: $480,000
This means:
You pay less interest
More of your repayment goes toward the principal
You pay off your home loan faster, without changing repayment frequency
🧠 Offset vs Extra Repayments: Which Saves More?
| Strategy | Benefit | Best For |
|---|---|---|
| Weekly/Fortnightly Payments | 1 extra repayment per year | Standard home loans |
| High Offset Balance | Daily interest reduction | Offset home loans |
With offset loans, putting extra cash into the offset (instead of making extra repayments) gives you more flexibility and savings.
✅ How to Make the Most of Your Offset Loan
To reduce your mortgage faster using an offset account:
Deposit your salary into the offset account
Keep savings and emergency funds in the offset
Use a credit card for everyday purchases (paid off monthly), keeping cash in your offset longer
Avoid frequent withdrawals to maintain a high daily balance
Consider multiple offset accounts if your lender allows it
🧾 Looking for a loan with multiple offset accounts or a better rate? Compare offset home loans or talk to a broker today.
🎯 Final Takeaway: What Really Helps You Pay Off an Offset Loan Faster?
Forget about repayment frequency. If you’re using an offset account, the key to paying off your loan faster is to maximise the funds sitting in your offset every day.
The more you offset, the less interest you pay — and the quicker you reach mortgage freedom.
💬 Need Help Choosing the Right Offset Loan?
Whether you’re refinancing, buying your first home, or just curious about offset options, we can help.
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📌 Disclaimer
This content is for general information only. It does not take into account your personal financial situation, goals, or needs. Consider seeking professional advice before acting on any information. All rights reserved.