Bi-Weekly Mortgage Calculator Canada

Monthly vs. Bi-Weekly vs. Accelerated Bi-Weekly

There are three common payment frequencies in Canada — and they're not all equal:

• Monthly: 12 payments per year. Standard default at most lenders.
• Bi-weekly: 26 payments per year. Each payment = monthly/2. Same total annual payment as monthly — no benefit.
• Accelerated bi-weekly: 26 payments per year, but each payment = monthly/2 slightly larger. Equivalent to making 13 monthly payments per year. This is the one that saves you money.

How Accelerated Bi-Weekly Works

Your monthly payment is $2,800 (for example). Bi-weekly would be $1,400 × 26 = $36,400/year. Accelerated bi-weekly takes monthly × 12 / 26 = $1,292/payment × 26 = $33,600/year — wait, that's less. Let me clarify: accelerated bi-weekly = monthly ÷ 2. Then you pay that 26 times per year.

The math: monthly payment = $2,800. Accelerated bi-weekly = $1,400. But you pay it 26 times = $36,400/year vs. $33,600 for 12 monthly payments. That extra $2,800 per year is effectively one bonus monthly payment — going straight to principal.

Real Example: $500,000 Mortgage at 4.24%

Monthly payment: $2,700/month. Total interest over 25 years: approximately $310,000.

Accelerated bi-weekly: $1,350/payment × 26 = $35,100/year. Total interest: approximately $273,000. Savings: ~$37,000. Payoff time: 22 years and 4 months instead of 25 years. You save 2 years and 8 months — just by switching payment frequency.