Common Frequency Options
Lenders typically offer monthly, semi-monthly, bi-weekly, and weekly payment options, along with accelerated versions of bi-weekly and weekly payments. Each spreads your annual payment total differently across the year.
- Monthly
- Semi-monthly and bi-weekly
- Accelerated bi-weekly or weekly
How Accelerated Payments Help
Accelerated bi-weekly payments are calculated by taking your monthly payment and dividing it by two, then paying that amount every two weeks. Because there are 26 bi-weekly periods in a year rather than 24, you end up making the equivalent of one extra monthly payment annually.
The Impact Over Time
That single extra payment per year can shave a meaningful amount of time off a 25 year mortgage and reduce the total interest paid, without requiring a large lump sum all at once.
Matching Payments to Your Paycheque
Beyond the savings, many people choose a payment frequency that lines up with how often they get paid, which can make budgeting simpler and reduce the temptation to spend the difference elsewhere.
Confirming With Your Lender
Not all lenders offer every frequency option in the same way, and some non-accelerated versions do not provide the same time savings, so confirm the specific structure before choosing.
Frequently asked questions
- Does accelerated bi-weekly cost more each payment?
- It is slightly higher per payment than regular bi-weekly, but it results in one extra full payment per year.
- Can I change my payment frequency after my mortgage starts?
- In many cases yes, though it depends on your lender's policies and may be easier at renewal.
- Does payment frequency change my interest rate?
- No, it does not change your rate, but it can change how quickly you pay down principal.