By: Looey Tremblay
Here's a synopsis to help you determine your ideal mortgage payment frequency - monthly, bi-monthly, bi-weekly, accelerated bi-weekly, weekly, or accelerated weekly payments.
Note: Calculations are subject to change and for informational purposes only.
Monthly Payments: Monthly mortgage payments are one lump sum payment paid once per month. You will make 12 payments per annum based on this payment frequency.
Example: $500,000 mortgage at a 5.0% fixed interest rate based on a 5-year mortgage term over a 25-year amortization period (the total number of years you have to pay off your mortgage in full), your monthly mortgage payments might total $2,908.02.
Semi-Monthly Payments: Two payments per month for a total of 24 for the year.
Example: $500,000 mortgage at a 5.0% fixed interest rate based on a 5-year mortgage term over a 25-year amortization period, your bi-monthly mortgage payments might total $1452.52.
Bi-Weekly Payments: Bi-weekly mortgage payments are paid every 2 weeks for a total of 26 payments per year.
Example: $500,000 mortgage at a 5.0% fixed interest rate based on a 5-year mortgage term over a 25-year amortization period, your bi-weekly mortgage payments might total $1,340.68.
Accelerated Bi-Weekly Payments: Accelerated bi-weekly mortgage payments are also 26 payments per year. However, the payment amount is more than the amount for a bi-weekly payment frequency. In essence, you are paying an additional monthly payment each year. The benefits of accelerated payments are that you can pay off your mortgage faster AND save $$ in interest.
Example: $500,000 mortgage at a 5.0% fixed interest rate based on a 5-year mortgage term over a 25-year amortization period, your accelerated bi-weekly mortgage payments might total $1,454.01.
Weekly Payments: Weekly mortgage payments are a total of 52 payments a year (multiply your monthly mortgage payment by 12 months and divide by 52 weeks in a year).
Example: $500,000 mortgage at a 5.0% fixed interest rate based on a 5-year mortgage term over a 25-year amortization period, your weekly mortgage payments might total $670.02.
Accelerated Weekly Payments: Accelerated weekly mortgage payments are also 52 payments per year. However, the payment amount is more than the amount for a weekly payment frequency. In essence, you are paying an additional monthly payment each year.
Find out more about financing your dream home, interest rates, prepayment privileges, and more by contacting a trusted mortgage provider. Feel free to reach out to one of our recommended mortgage lenders with any mortgage financing questions that you may have:
Jim Steffler
Email: jim@jimstefflermortgages.com
Cell: 226-338-5136
Claire Cochrane
Email: claire.cochrane@rbc.com
Cell: 226-336-1189
Bethany Gradwell
Email: bgradwell@monumentalmortgages.com
Cell: 905-537-7498
Our congratulations to new Mom, Bethany, who welcomed her 8 lb. 9 oz. baby girl, Jace Hendrix Gradwell, into the world on May 16, 2023!