All payment frequencies compared
| Frequency | Payment | Per year | Paid / year | Paid off in | Total interest | Interest saved |
|---|---|---|---|---|---|---|
| Monthly | $2,890.97 | 12 | $34,692 | 25 yrs | $367,300 | $0 |
| Semi-monthly | $1,445.49 | 24 | $34,692 | 24 yrs 11 mo | $365,600 | $1,700 |
| Bi-weekly | $1,334.29 | 26 | $34,692 | 25 yrs | $365,400 | $1,900 |
| Weekly | $667.15 | 52 | $34,692 | 24 yrs 11 mo | $364,600 | $2,600 |
| Accelerated bi-weekly | $1,445.49 | 26 | $37,583 | 21 yrs 6 mo | $308,200 | $59,100 |
| Accelerated weekly | $722.74 | 52 | $37,583 | 21 yrs 6 mo | $307,500 | $59,800 |
$500,000 mortgage at 4.94% with semi-annual compounding, 25-year amortization, rate assumed constant.
Why “accelerated” makes the difference
Regular bi-weekly payments are the monthly amount × 12 ÷ 26 — $1,334.29 — so you pay exactly the same per year and save only a little interest from paying slightly earlier. Accelerated bi-weekly is the monthly amount ÷ 2 — $1,445.49. The extra $2,891 a year goes entirely to principal, which is what shortens the amortization by years.
Savings by mortgage size
| Mortgage | Monthly | Accel. bi-weekly | Paid off in | Interest saved |
|---|---|---|---|---|
| $300,000 | $1,735 | $867 | 21 yrs 6 mo | $35,000 |
| $500,000 | $2,891 | $1,445 | 21 yrs 6 mo | $59,000 |
| $750,000 | $4,336 | $2,168 | 21 yrs 6 mo | $89,000 |
| $1,000,000 | $5,782 | $2,891 | 21 yrs 6 mo | $118,000 |
Is it worth it?
You can usually switch frequency at any time without penalty. Combine it with the annual prepayment privilege (often 10–20% of the original principal) for even faster payoff.
FAQ
What is an accelerated bi-weekly mortgage payment?
Half of the monthly payment paid every two weeks. With 26 payments a year you pay the equivalent of 13 monthly payments, and the extra goes to principal.
How much does accelerated bi-weekly save?
On a $500,000 mortgage at 4.94% over 25 years, about $59,000 of interest, and the mortgage is paid off in about 21 yrs 6 mo instead of 25 years.
What is the difference between bi-weekly and accelerated bi-weekly?
Regular bi-weekly is the monthly payment × 12 ÷ 26 ($1,334.29 on $500,000), costing the same per year as monthly. Accelerated bi-weekly is the monthly payment ÷ 2 ($1,445.49).
Does accelerated bi-weekly affect my mortgage approval?
No. Lenders qualify you on the regular monthly payment under the stress test.
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Assumptions & sources
- Bank of Canada raised the target for the overnight rate by 25 basis points to 2.50% on 28 October 2026 (Bank Rate 2.75%, deposit rate 2.45%); next decision 9 December 2026. Big-bank prime rose to 4.70% on 29 October 2026.
- Typical rates: 4.94% 5-year fixed and 3.95% 5-year variable are the median of the 17 lenders listed in Ratehub.ca’s rate tables updated 2 November 2026 (fixed range 4.44%–5.99%, variable 3.68%–4.70%). Insured (high-ratio) mortgages often get slightly lower rates than uninsured ones.
- Fixed-rate payments use Canadian semi-annual compounding (Interest Act); variable-rate payments use monthly compounding, which most lenders apply to variable mortgages. Rates are assumed constant for the whole amortization.
- CMHC homeowner premiums on the loan amount: 4.00% above 90% loan-to-value, 3.10% for 85.01–90%, 2.80% for 80.01–85%, plus 0.20% for amortizations over 25 years. Provincial sales tax on the premium in Ontario (8%), Quebec (9%) and Saskatchewan (6%) must be paid in cash at closing.
- Minimum down payment (Department of Finance rules from 15 December 2024): 5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million; 20% at $1.5 million or more, where default insurance is not available. 30-year insured amortizations: first-time buyers and buyers of new builds.
- Stress test: qualify at the greater of 5.25% or the contract rate + 2 points (OSFI Guideline B-20; the same floor applies to insured loans). Income needed uses CMHC’s 39% GDS / 44% TDS limits, property tax of 1% of the price a year and $100/month heating. Take-home pay: 2026 Ontario, from our Canada salary after tax engine.
- National average price: CREA, September 2026 ($666,538, −1.6% year over year).