Updated Checked by the Tax-Services.ca editorial team How we check
Same $500,000 mortgage at 4.85% over 25 years, two ways to pay it. Monthly payments of $2,865.48 cost you the full 25 years. Accelerated bi-weekly payments of $1,432.74 save $57,198 in interest and cut 3.4 years off the loan. A plain bi-weekly payment saves only $926, because it lacks the extra payment that the accelerated schedule builds in each year.
Enter your own loan, rate and amortization to see all six options together.
Which payment frequency saves the most interest?
Accelerated weekly saves the most, with accelerated bi-weekly a hair behind. The three standard schedules save very little. Here’s the $500,000 example at 4.85% over 25 years.
| Frequency | Payment | Paid off in | Total interest |
|---|---|---|---|
| Monthly | $2,865.48 | 25.0 years | $359,643 |
| Bi-weekly | $1,321.11 | 25.0 years | $358,717 |
| Accelerated bi-weekly | $1,432.74 | 21.6 years | $302,444 |
| Accelerated weekly | $716.37 | 21.5 years | $301,797 |
Why do accelerated payments help when ordinary bi-weekly barely does?
An accelerated payment is the monthly payment divided by 2 or by 4. You make 26 half payments a year, which adds up to 13 monthly payments instead of 12: $37,251 a year against $34,386. The extra goes straight to principal. A standard bi-weekly payment is sized to the same 25-year schedule, so it gains only a little from paying slightly sooner.
How is the interest worked out on a Canadian fixed mortgage?
Fixed-rate mortgages in Canada are quoted with interest calculated yearly or half-yearly under the Interest Act, and lenders compound them twice a year. The calculator converts that rate to the equivalent for each payment period, which is why its monthly payment matches the site’s mortgage payment calculator. Variable rates can work differently, so use your lender’s schedule for a final answer, or compare the two types on the fixed vs variable mortgage calculator.
How much do I still owe after a five-year term?
You owe $441,487 on the monthly schedule and $425,104 on accelerated bi-weekly, a gap of $16,383 on the same loan. That lower balance is what you carry into renewal, and it can matter more than the long-run interest total if you plan to refinance or move. The year-by-year schedule is on the mortgage amortization calculator.
What should I check with my lender before switching?
Confirm that the schedule is truly accelerated and what amortization the lender will show. The Financial Consumer Agency of Canada: Decision 131 found a lender labelling options as accelerated when they didn’t behave that way. Ask about payment dates and prepayment limits too, and whether you can switch back. Accelerated bi-weekly adds about $2,865 a year to your payments, so make sure the budget can take it. If you’d rather make lump-sum payments, compare that plan on the mortgage prepayment calculator.
Where does this information come from?
The semi-annual compounding convention follows section 6 of the Interest Act and the site’s mortgage rules library; all payments, interest and balances come from the site’s own schedule engine. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
Is bi-weekly the same as accelerated bi-weekly?
No. A standard bi-weekly payment of $1,321.11 on the $500,000 example is sized to the original 25-year schedule. The accelerated payment of $1,432.74 is half the monthly amount and pays the loan off in about 21.6 years.
Does paying weekly instead of monthly save money by itself?
Only a little. A standard weekly payment saves about $1,321 in interest on the $500,000 example, because interest builds on a slightly lower balance. The big savings come from the extra payment built into accelerated schedules.
Can I choose any frequency with my lender?
Not always. Lenders offer different options, and not every lender sells all six. Ask which ones are available at signing and at renewal, and whether changing mid-term costs a fee.
Is the payment frequency tied to the term or the amortization?
No. Amortization is the full repayment length, such as 25 years, and the term is the contract, often five years. You can usually change the frequency at renewal, and sometimes during the term if your lender allows it.