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Mortgage Glossary

What is Bi-weekly Payments?

Bi-weekly payments are mortgage payments made every two weeks rather than once a month, totalling 26 payments a year. In Canada, an accelerated bi-weekly schedule effectively adds one extra monthly payment annually, helping you pay off the mortgage faster and save interest. A standard bi-weekly schedule simply splits the monthly amount without speeding up repayment.

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Quick answer

Bi-weekly payments are mortgage payments made every two weeks rather than once a month, totalling 26 payments a year. In Canada, an accelerated bi-weekly schedule effectively adds one extra monthly payment annually, helping you pay off the mortgage faster and save interest. A standard bi-weekly schedule simply splits the monthly amount without speeding up repayment.

Also known as: biweekly payments, accelerated bi-weekly payments

Key points

  • Bi-weekly means paying every two weeks, for 26 payments a year.
  • Standard bi-weekly costs the same per year as monthly payments.
  • Accelerated bi-weekly adds one extra payment annually, paying down principal faster.
  • The extra payment can cut years off amortization and save substantial interest.
  • Bi-weekly schedules often align conveniently with two-week paycheques.

Bi-weekly Payments explained

With bi-weekly payments, your mortgage is paid every two weeks, producing 26 payments per year. There are two versions: standard bi-weekly takes your annual payment and divides it into 26, so it costs the same per year as monthly; accelerated bi-weekly takes your monthly payment and simply halves it, then collects that half 26 times.

Because there are 26 two-week periods but only 12 months, the accelerated approach means you pay the equivalent of 13 monthly payments a year instead of 12. That extra payment goes straight to principal, shortening your amortization and cutting total interest. The accelerated version is where the real savings come from.

What a Bi-weekly Payments is for

Bi-weekly payments exist to align mortgage payments with common pay schedules and, in the accelerated form, to help borrowers pay down their loan faster. By sneaking in one extra payment a year, accelerated bi-weekly turns a small change in timing into meaningful long-term savings.

How it can help you

Accelerated bi-weekly payments help Canadian borrowers shave years off their mortgage and save thousands in interest, often without feeling the difference in their budget. They also match payments to a typical two-week paycheque. Lenderoo's free comparison across 40+ lenders helps you confirm which lenders offer flexible payment frequencies.

When it comes up

Bi-weekly payments come up when a borrower paid every two weeks at work wants their mortgage to match their cash flow. Choosing the accelerated option lets them effortlessly make an extra payment each year and become mortgage-free sooner without budgeting a large lump sum.

Example: accelerated savings

Suppose your monthly mortgage payment is $2,400. With standard monthly payments you pay $28,800 a year. Accelerated bi-weekly halves the monthly payment to $1,200 and collects it 26 times.

That totals $31,200 a year, or one extra $2,400 payment, all applied to principal. On a typical mortgage this can knock several years off the amortization and save tens of thousands in interest over the life of the loan.

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Questions & answers

Bi-weekly Payments: frequently asked questions

Common questions Canadians ask about bi-weekly payments.

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Related mortgage terms

Amortization

The process of paying off a mortgage over time through regular blended payments of principal and interest.

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Prepayment

Extra payment toward mortgage principal.

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Blended Payment

A regular mortgage payment that combines both principal and interest into one fixed amount.

Read definition

Principal

The original amount borrowed, excluding interest.

Read definition

Interest Rate

The cost of borrowing money, expressed as a percentage of the loan amount.

Read definition
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