Mortgage Payment Frequency Options

Marci • February 7, 2014

Here you go…….Everything you ever wanted to know about Mortgage Payments!! I am asked on a regular basis about different types of mortgage payment options. Below is a brief summary of each and some definitions to help clear up any confusion you may have.

What are your PAYMENT FREQUENCY OPTIONS?

Definition :   Payments consisting of both a principal and an interest component, paid on a regular basis during the term of the mortgage.   Refers to how often and when you can make these payments.

Options :

  • Monthly (any day of the month usually between the 1st and 28th)
  • Weekly (any day of the work week, 52 payments per year
  •   Bi-Weekly (every other week, 26 payments per year)
  • Semi-Monthly (twice per month, 24 payments per year, e.g. on the 1st and 15th of each month
  • Plus accelerated weekly and bi-weekly

 

What is an accelerated bi-weekly payment?

  • Accelerated Bi-Weekly payments are exactly half of a regular monthly payment amount BUT it is collected every two weeks.  This means you make 26 payments per year

  For example, if the monthly payment is $1,000 then the accelerated bi-weekly payment will be $500

o    If you paid monthly you would pay $1,000 x 12 months = $12,000 per year

o    Paying accelerated bi-weekly you would pay $500 x 26 = $13,000 per year

This results in you paying an extra $1,000 off your mortgage each year – hence accelerating how fast you pay it back.    Remember, twice a year you will have three payments in one month. Accelerated weekly refers to monthly payment divided by 4!

 

What is a non-accelerated bi-weekly payment ?

  • Non-accelerated is taking the regular monthly payment and times by 12 months, then   d ivide this into 26 payments

   For example, if the monthly payment is $1,000 then the non-accelerated bi-weekly payment will be $461.54

o    If you paid monthly you would pay $1,000 x 12 months = $12,000

o    Paying non-accelerated bi-weekly you would still pay $12,000 = $461.54 x 26 = $12,000

This results in you not paying any extra off your mortgage each year – hence non-accelerating .  Remember, twice a year you will still have three payments in the one month

So let’s compare the payments and savings between these two options; regular monthly and accelerated bi-weekly payments:

 $250,000 mortgage with a 25 year amortization at 3.39% 5 Year Fixed Term:

Regular Monthly Over 5 Year Term

Monthly payment = $1,233.70

Total Payments each year = $14,804.40

Total Payments in 5 Years = $74,022.00

Total Interest Paid in 5 Years = $39,285.61

Total Principal Paid in 5 Years = $34,736.61

Balance owing in 5 Years = $215,263.39

Effective amortization = 25 years

Accelerated bi-weekly Over 5 Year Term

Monthly payment = $1,233.70/2 =

Bi-Weekly Payment of $616.85

Total Payments each year = $16,038.10

Total Payments in 5 Years = $80,190.50

Total Interest Paid in 5 Years = $38,680.82

Total Principal Paid in 5 Years = $41,510.98

Balance owing in 5 Years = $208,489.02

Effective amortization = 22 Years 2 Months

So how do you select the right one for you?

  •   Determine which payment option you actually qualify for
  • Review what payment options the lender offers
  • Consider aligning your payment frequency with how often you get paid each month e.g. if you are paid every two weeks, then consider accelerated bi-weekly payments to align with each pay cheque
  • The more often you pay, the less interest you will pay
  • You can always adjust this at any time and change

 My recommendation : Pay accelerated bi-weekly if you can afford it, as it forces you to pay more.   By paying your mortgage off sooner you will reduce your debt and save unnecessary interest – plus a forced savings plan for the future! If you have additional questions please contact me! marci@askmarci.ca

 

 

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How to Finance a Spousal Buyout After Separation or Divorce

By Marci Deane • November 4, 2026
Mortgage Options During Divorce or Separation: What You Should Know If you’re going through—or considering—a divorce or separation, you may not realize that there are mortgage solutions specifically designed to help one party keep the home . For many people, the family home is their largest asset and where most of their equity is tied up. In situations like this, a spousal buyout program can allow one person to refinance the property and buy out the other party’s share—often up to 95% of the home’s value . This option can work whether you want to keep the home or your former partner does. What Is the Spousal Buyout Program? The spousal buyout program is a refinancing option that allows one owner to purchase the other owner’s share of the property as part of a separation or divorce settlement. In some cases, it can also be used to pay off jointly held debts, as outlined in a legal agreement. Below are some of the most common questions about how the program works. Is a finalized separation agreement required? Yes. Lenders require a signed and finalized separation agreement that clearly outlines how assets and debts are to be divided. This document is essential for approval. Can the funds be used for renovations or personal debts? No. Funds from a spousal buyout can only be used to: Buy out the other owner’s share of equity Pay off joint debts specifically listed in the separation agreement They cannot be used for renovations, personal loans, or unrelated expenses. How much equity can be accessed? The maximum amount available is the amount required to: Buy out the other party’s agreed-upon share of equity Pay off any joint debts listed in the agreement This amount cannot exceed 95% loan-to-value . What is the maximum loan-to-value allowed? The maximum loan-to-value is the lesser of : 95%, or The remaining mortgage balance plus the required buyout and joint debt payout The property must be the primary owner-occupied residence . Do all parties need to be on title? Yes. All individuals involved in the buyout must currently be registered on title. Your solicitor will confirm this through a title search. Does this only apply to married or common-law couples? No. While commonly used for married or common-law couples, the program may also apply to siblings or friends who jointly own a property and need one party to exit the mortgage. These cases are typically reviewed on an exception basis and require insurer approval. If no separation agreement exists, the purchase contract must clearly outline the buyout terms. Is a full appraisal required? Yes. A physical, on-site appraisal is required to confirm the property’s value before the mortgage can be finalized. Final Thoughts This overview covers some of the most common questions about mortgage options during separation or divorce, but every situation is different. Working with an independent mortgage professional gives you access to multiple lenders, specialized programs, and unbiased advice—so you can clearly understand your options and choose what’s best for your future. If you’re navigating a separation and need guidance around keeping or selling the home, feel free to connect anytime. All conversations are handled with discretion and confidentiality, and I’d be happy to walk you through your options.

Bank of Canada Raises Rate to 2.5% — October 28, 2026

By Marci Deane • October 28, 2026
On October 28, 2026, the Bank of Canada raised its key interest rate by 0.25%, bringing it to 2.5%. If you have a mortgage, are shopping for a home, or have a renewal coming up, this decision matters. Here is a plain-language look at what changed, why it happened, and what it could mean for you.

How to Legally Assign a Construction Mortgage

By Marci Deane • October 21, 2026
Why More Mortgage Options Matter—Especially for Assignment Purchases One of the biggest advantages of working with an independent mortgage professional is access to choice. Instead of being limited to one lender and one set of products, mortgage brokers work with multiple lenders—each with different guidelines, risk tolerances, and mortgage solutions. That flexibility becomes especially valuable when your situation doesn’t fit neatly into a “standard” box. A great example of this is purchasing new construction through an assignment contract . Why Assignment Purchases Can Be Challenging Assignment purchases are often viewed as higher risk by traditional lenders. Rather than declining these deals outright, many lenders quietly make them difficult by adding layers of conditions, restrictions, or uncertainty. This can lead to delays, frustration, or financing falling apart late in the process. The Good News There are lenders—available exclusively through the broker channel —that have clear, favourable policies for assignment purchases. With the right lender and proper planning, these transactions are absolutely doable. Typical Financing Requirements for Assignment Purchases While every situation is unique, many lenders that allow assignment financing look for the following: Standard purchase qualification, including income verification, credit, and down payment Assignments accepted at either the original purchase price or current market value Minimum 620 credit score , with no prior bankruptcies or consumer proposals The full down payment must come from the purchaser —seller incentives cannot be used Required Documentation To secure financing, lenders typically require: The original purchase agreement signed by all parties The MLS listing (if applicable) The assignment agreement signed by the builder, original purchaser, and new buyer Any side agreements outlining changes to the purchase price A full appraisal to confirm value This list isn’t exhaustive, but it highlights that while assignment purchases require more coordination, they are very achievable with the right lender and guidance. Final Thoughts Assignment contracts can open doors to great opportunities—but only if your financing supports the transaction. This is where access to multiple lenders and specialized policies makes a real difference. If you’re considering purchasing new construction through an assignment, or if you’d like to explore more traditional purchase options, feel free to connect anytime. I’d be happy to walk you through the mortgage products available and help you choose an option that doesn’t limit your financing possibilities.