Posted On Sep 12, 2023

When it comes to structuring your mortgage, you have options for payment frequency: Monthly, Semi-Monthly, Biweekly, Weekly, or the game-changer - Accelerated payments.

While there's a common belief that bi-weekly payments are the best money-saver, the real magic happens with ACCELERATED payments. "Accelerated" simply means paying more, paying faster. 

Check out this payment breakdown for a $500,000 mortgage, 25 year amortization, 6% rate, and a 5 year term. Discover how choosing the right payment strategy can make a significant difference in your financial journey. 

Monthly = $3,199.03
Interest over the term = $141,125.57
Principal paid over the term = 50,816.23
Balance at end of term = $449,183.77

Semi Monthly = $1,597.55
Interest over the term = $140,889.07
Principal paid over the term = $50,816.23
Balance at end of term = $449,183.07

Biweekly = $1,474.52
Interest over the term = $140,870.93
Principal paid over the term = $50,816.67
Balance at end of term = $449,183.33

Weekly = $736.84
Interest over the term = $140,762.03
Principal paid over the term = $50,816.37
Balance at end of term = $449,183.63

ACCELERATED Biweekly = 1,599.52
Interest over the term = $138,235.55
Principal paid over the term = $69,702.05
Balance at end of term = $430,297.95


*For illustration purposes only. Costs associated with registering/arranging a mortgage no included in illustration. 


Danny Bell, AMP
Mortgage Broker | Lic.#M13001996
C: 289-200-9061 | T: 905-426-4200
www.strictly-business.ca 
The Mortgage Centre | Durhammortgage.com Ltd. | Reg. #10231 | Est. 1993

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