Weekly vs Monthly Interest Payments Explained

Hello

I currently have one loan with Westpac. Paying interest only. I am repaying the loan on a Monthly basis.

I realize that if I was to pay weekly, my total interest repayment would be smaller as I won't be paying interest on interest.

I called Westpac today and they said that I cannot setup a direct deposit on a weekly basis unless I had a P & I loan.

What is a way around this?
 
No way around this. As far as I'm aware, all lenders charge interest only loans on a monthly basis. Weekly or fortnightly repayments are not available.

If you're worried about paying interest on interest (which is a negligible amount), set up an offset account against the loan. The negates the effect more than weekly repayments does.
 
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