Why accelerated bi-weekly payments

How to Save Time and Money Through Accelerated Bi-Weekly Payments

Why accelerated bi-weekly payments

Why accelerated bi-weekly payments?

One of the most effective ways to reduce the time it takes to pay off your mortgage, and save on possible interest paid, is using accelerated bi-weekly payments. Instead of paying your mortgage on a monthly basis, with accelerated bi-weekly payments, you pay half your monthly mortgage payments every two weeks. This means you are making 26 bi-weekly payments, opposed to 12 monthly payments over the year. Since you’re making payments every 2 weeks, opposed to twice a month (this would be 24 payments, not 26 payments), you end up paying an additional 2 bi-weekly payments over the year. This results in building additional equity in your home, while reducing potential interest you would be paying, and reducing the length of time it will take to pay off your mortgage. Let’s take a look at an example of it in action


Mortgage Amount $300,000
Mortgage Term 5 years
Amortization 25 years
Interest Rate 2.99%


If we look at a mortgage with the terms stated in the table above, by opting to use accelerated bi-weekly payments, opposed to monthly payments, you would save $760.88 in interest over the 5 year mortgage term, while building an additional $7851,87 in equity. In addition to these short term benefits, opting for accelerated bi-weekly payments with this scenario will result in paying off your mortgage almost 3 years earlier, and saving almost $16,000 in interest while doing so.

In addition to these savings, accelerated bi-weekly payments can be more effective for budgeting. Most people are paid bi-weekly, so when making payments bi-weekly, you have the ability to budget more efficiently. Moreover, you can align your mortgage payment date with your pay period, which means before even being able to spend any of your pay, you have already paid your mortgage liability. This makes your mortgage payments one less thing to worry about!


If you have any other questions related to this article, or any other mortgage related topics, please either send me an email at sameer@spmortgage.ca, or give me a call at 778-822-5466. I am ALWAYS available for you!


Hardworking, Ambitious & Detail-Oriented, Sameer can be counted on for any financing needs you may require. Working in all aspects of financing(residential, commercial and private), Sameer has a passion for helping his clients, and making the mortgage process as smooth and stress free as possible.