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.
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.
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.
Monthly Payments
$2,326
per month
Total Interest Paid
$297,800
Paid Off In
25 years
Accelerated Bi-Weekly
$1,163
every 2 weeks
$247,400
21.5 years
Your Savings with Accelerated Bi-Weekly
$50,400
Interest Saved
3.5 Years
Paid Off Sooner
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.
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.
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.
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.
Yes! Most lenders allow you to change your payment frequency at any time, usually through online banking or by calling. There's typically no fee, but the change may take effect on your next payment date.
Yes! Semi-monthly means 24 payments per year (e.g., 1st and 15th of each month). Bi-weekly means 26 payments per year (every 2 weeks). The extra 2 payments with bi-weekly is what generates the savings when combined with accelerated calculation.
Start with regular monthly payments and switch to accelerated later when your budget allows. You can also use your prepayment privileges to make lump-sum payments when you have extra cash — the savings are similar.
Slightly. Weekly payments mean interest is calculated on a slightly lower balance than monthly payments. However, the real savings with accelerated payments comes from the extra annual payment, not the frequency itself.
Use our calculator to see how different payment frequencies affect your mortgage.
Pick a time that works best for you
