Bi-weekly vs monthly payments

See how accelerated bi-weekly payments can shorten your mortgage and cut interest.

Mortgage amount

Interest rate (%)

Amortization (years)

With accelerated bi-weekly, you could save

Time off your mortgage-

Paid off in (accelerated bi-weekly)-

Monthly payment$0

Accelerated bi-weekly payment$0

Total interest, monthly$0

Total interest, accelerated bi-weekly$0

Accelerated bi-weekly is your monthly payment divided by two, paid every two weeks, so you make the equivalent of one extra monthly payment per year.

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For illustration only and not an offer of financing. Estimates use Canadian semi-annual compounding and assume a fixed rate and unchanged payments for the full amortization; actual savings depend on your lender's payment rules, prepayment privileges, and rate changes at renewal. TMG HarbourTown Mortgage Inc., Licence #3000145.

What these numbers mean

Plain-language definitions and the typical ranges, so you can play with the inputs with confidence.

Mortgage amount: The balance you are paying down. This is the starting principal for both the monthly and the accelerated bi-weekly plan.
Typical: the price less your down payment, plus any insurance premium if the deal is insured.
Interest rate: The annual rate used to estimate both schedules. We will confirm the actual options available to you.
Typical: fixed and variable rates move with the market and with whether your deal is insured or conventional.
Amortization: The years a monthly schedule would take to clear the mortgage. Accelerated bi-weekly beats this because you pay a little more each year.
Typical: 25 years is standard; 30 years on insured first-time and new-build deals, and on conventional.
Accelerated bi-weekly payment: Your monthly payment divided by two, paid every two weeks. Because there are 26 bi-weekly periods, you make the equivalent of one extra monthly payment a year.
Typical: this is the version that shortens the term, unlike plain bi-weekly which just splits the monthly total.
Interest saved and time off your mortgage: The headline result. Paying more principal sooner cuts both the interest you pay and the years it takes to be mortgage-free.
Typical: accelerated bi-weekly can trim a few years off a 25-year amortization, depending on rate.
Prepayment privileges: Lenders cap how much extra you can put down each year without a charge. Switching payment frequency is usually free, but confirm the rules on your product.
Typical: 15 to 20 percent of the original balance per year, lender-specific.
Semi-annual compounding: Canadian fixed mortgages compound interest twice a year by law. This tool already applies it to both schedules.
Standard: required on Canadian fixed-rate mortgages.

These are general ranges, not your numbers. The right figure depends on your situation, the property, and the lender. Talk to us and we will pin it down.

Bi-weekly vs monthly payments

What these numbers mean

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