There is a real financial benefit to increasing the frequency of your mortgage repayments from monthly to fortnightly.

By paying half of your monthly fee to the banks each fortnight, you are making 13 payments a year instead of 12.

For instance, if the monthly repayment was $2300 and you paid $1150 a fortnight you would repay $29,900 over 12 months instead of $27,600.

Consider how much you would save if you continued to do this even when interest rates come down?

Let’s assume you borrow $500 000 over 25 years at 7 per cent.

By making your minimum monthly repayments, you will end up paying a total of $1,060,147.

But if you choose to pay just $60 a month more, you will shave $28,917 off the entire mortgage.

The savings will increase if you choose to increase your contributions even more!

Taking the big picture view has massive benefits including building up an additional cash flow buffer.

You can do this by putting the extra repayments in an offset account, which reduces your debt and interest repayments, but this money is yours so you can redraw it without having to ask the bank.

This is a great strategy to increase your equity, reduce your debt and continue to grow your portfolios equity, even if values are stagnating.

Here are some more quick tips:

• Find an investment savvy mortgage broker
• Get your broker to review your current loans
• Don’t take on bad debt
• Consider fixing interest rates
• Want to save even more? Self Manage your Property with RealRenta
• www.realrenta.com.au . Visit the website now and join for your Free Trial