Payment Frequency Guide
How you pay your mortgage matters as much as your rate. Learn how accelerated payments can save you tens of thousands and years off your mortgage.
Payment Options Compared
| Payment Type | Frequency | Annual Payments | Extra Yearly |
|---|---|---|---|
| Monthly | 12x per year | 12 | — |
| Semi-Monthly | 24x per year | 24 | — |
| Bi-Weekly | 26x per year | 26 | — |
| Accelerated Bi-Weekly ⭐ | 26x per year | 26 | ≈ 1 month |
| Weekly | 52x per year | 52 | — |
| Accelerated Weekly ⭐ | 52x per year | 52 | ≈ 1 month |
The Accelerated Payment Advantage
The magic of accelerated payments is simple math: you make more payments per year, which adds up to approximately one extra monthly payment annually. This extra payment goes directly to principal, saving you interest and years.
How It Works: Accelerated Bi-Weekly
Regular Bi-Weekly:
Monthly payment ÷ 2 = bi-weekly payment
$2,000/month ÷ 2 = $1,000 bi-weekly
26 × $1,000 = $26,000/year
Accelerated Bi-Weekly:
Monthly payment × 12 ÷ 26 = payment
$2,000 × 12 ÷ 26 = $923.08 bi-weekly
But wait... that's actually the same!
The Real Difference: "Accelerated" means taking your monthly payment and dividing by 2 (or 4 for weekly), NOT dividing your annual amount by 26 (or 52). This results in paying slightly more per payment, which adds up to one extra monthly payment per year.
Real Savings Example
$400,000 Mortgage at 5.0% Over 25 Years
Monthly Payments
$2,326
per month
Total Interest Paid
$297,800
Paid Off In
25 years
Accelerated Bi-Weekly
$1,163
every 2 weeks
Total Interest Paid
$247,400
Paid Off In
21.5 years
Your Savings with Accelerated Bi-Weekly
$50,400
Interest Saved
3.5 Years
Paid Off Sooner
Which Payment Frequency Should You Choose?
Best Choice: Accelerated Bi-Weekly
The most popular option for good reason. It aligns with many people's bi-weekly pay schedules and provides significant savings without feeling like a major sacrifice.
Best for: People paid bi-weekly who want maximum savings with minimal effort.
Also Great: Accelerated Weekly
Same savings as accelerated bi-weekly, just more frequent payments. May help with budgeting if you're paid weekly.
Best for: People paid weekly or who prefer smaller, more frequent payments.
Monthly
The simplest option. No extra savings, but easy to budget and manage. Consider making annual lump-sum payments instead.
Best for: Those who prefer simplicity or plan to make lump-sum prepayments manually.
Pro Tip: Match Your Pay Schedule
Set your mortgage payment to come out the day after your paycheque. This ensures the money is always there and you never miss a payment.
Frequently Asked Questions
See Your Savings
Use our calculator to see how different payment frequencies affect your mortgage.
Calculate Your Payments