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Mortgage payment options

When you purchase a property and take on a mortgage, you will need to make regular payments on it. How much you pay and how often you pay it depends on which mortgage payment frequency option you choose. In Canada, you can choose from five different mortgage payment options: monthly, bi-weekly, accelerated bi-weekly, weekly, or accelerated weekly. The most popular payment options are monthly, bi-weekly, and accelerated bi-weekly. To see how all three could affect your mortgage payment and repayment, watch the video below.

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What are the different mortgage payment options?

  • Monthly
  • Bi-weekly
  • Accelerated Bi-weekly
  • Weekly
  • Accelerated Weekly

What is a monthly mortgage payment?

A monthly mortgage payment is when your mortgage payment is withdrawn from your bank account on the same day of every month (i.e. on the 1st). With a monthly mortgage payment, you make 12 payments per year.

What is a bi-weekly mortgage payment?

A bi-weekly mortgage payment is when your monthly mortgage payment is multiplied by 12 months and divided by the 26 pay periods in a year. With a bi-weekly mortgage payment, you make 26 payments per year.

What is an accelerated bi-weekly mortgage payment?

An accelerated bi-weekly mortgage payment is when your monthly mortgage payment is divided by two and the amount is withdrawn from your bank account every two weeks. With an accelerated bi-weekly mortgage payment, you still make 26 payments per year but the payment amount is slightly more than a regular bi-weekly mortgage payment.

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What is a weekly mortgage payment?

A weekly mortgage payment is when your monthly mortgage payment is multiplied by 12 months and divided by the 52 weeks in a year. With a weekly mortgage payment, you make 52 payments per year.

What is an accelerated weekly mortgage payment?

An accelerated weekly mortgage payment is when your monthly mortgage payment is divided by four and the amount is withdrawn from your bank account every week. With an accelerated weekly mortgage payment, you still make 52 payments per year but the payment amount is slightly more than a regular weekly mortgage payment.

The difference between regular and accelerated payments

The one major difference between regular and accelerated payments is how the payment is calculated. With an accelerated payment option, you end up making roughly one extra payment a year. It’ll cost you a little more on a monthly basis, but will save you thousands in interest and help you pay off your mortgage even sooner.

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