Choosing the Right Mortgage Payment Option


When applying for a mortgage in Ottawa, part of the process is choosing your mortgage payment preference. With six main payment options to choose from, this decision requires careful consideration, as it can significantly impact your financial stability and long-term goals. Here is some information to help you choose the right mortgage payment for your circumstances.

Mortgage Payment Options

Let’s break down the six primary mortgage payment options:


The monthly payment option is one of the most widely chosen mortgage payment methods, primarily due to its simplicity and familiarity. It mirrors the monthly rent payments many first-time homebuyers are accustomed to, making budgeting and financial planning more straightforward. With this option, your annual mortgage payment is divided by 12,  resulting in a set payment amount. 

For example, if your annual mortgage payment is $12,000, your monthly payment will be $1,000.

The predictability of monthly payments can provide a sense of stability and ease of planning for homeowners, ensuring that they can comfortably manage their housing expenses. 

Bi-weekly Non-Accelerated

This is another popular option because it aligns with many people’s bi-weekly payroll cycle. However, it's essential to clarify that the bi-weekly non-accelerated option does not necessarily expedite your mortgage payoff. 

With bi-weekly non-accelerated, your annual total mortgage payments are divided by 26, reflecting the number of bi-weekly periods in a year. For example, if your yearly mortgage payment is $12,000, your bi-weekly non-accelerated payment would be $461.53.

Bi-weekly Accelerated

This is a good option for those who want to pay their mortgage off faster and are not as cash flow-sensitive. It has the convenience of bi-weekly payments to match your payroll cycle. The accelerated bi-weekly plan is calculated by dividing your annual mortgage payments by 24 (two payments per month). However, since there are 26 bi-weekly occurrences in a year, you simply pay a higher amount 26 times.

For example, if your annual mortgage payment is $12,000, your biweekly payments are $500 (12,000 divided by 24). This option is accelerated because you’ll make 26 bi-weekly payments of $500 instead of 26 payments of $461.53.

This strategy helps reduce your amortization period and the overall interest paid over the life of the loan, making it an excellent choice for those aiming for faster mortgage debt reduction. 

Weekly Non-Accelerated

The weekly non-accelerated mortgage payment option offers a unique approach to managing your mortgage, especially suitable for those who receive their income on a weekly basis. This option can also be beneficial for couples or households where the financial responsibility is shared, allowing each party to contribute on an alternating weekly basis.

For example, if your annual mortgage payment totals $12,000, dividing it by the 52 weeks in a year results in a weekly payment of approximately $230.77.

Weekly Accelerated

The weekly accelerated mortgage payment option is a strategic choice for those determined to expedite their mortgage payoff and minimize their overall interest expenses. This approach not only aligns with a weekly payment schedule but also significantly reduces the amortization period of your mortgage.

To calculate your accelerated weekly payment, divide your annual mortgage amount by 48 (four payments per month). Since there are 52 weeks in a year, you still make 52 payments, just at a higher amount.

For example, if your annual mortgage payment is $12,000, your weekly payments are $250 (12,000 divided by 48). You will pay $250 over 52 weeks instead of $230.77.


This allows you to have two payments taken on the same days each month, such as the 1st and the 16th. Each payment is one-half of your monthly payment amount. This option does not assist in reducing your amortization. 

For example, if your annual mortgage payment totals $12,000, you would divide it by 24 (reflecting two payments per month) to arrive at a semi-monthly payment of approximately $500. 

Can You Change Your Mortgage Payment Frequency?

In most cases, you can change your mortgage payment frequency, but it's essential to understand the process and implications involved. To change your payment frequency, you typically need to contact your mortgage lender or broker. They will provide the necessary forms and guidance to make the switch. Here are some key points to consider:

  • Impact on Budgeting: Changing your payment frequency can affect your budget. More frequent payments, like bi-weekly or weekly, may align better with your income schedule but might require smaller, more frequent payments.
  • Interest Savings: Some payment frequencies, like accelerated options, can help reduce the total interest paid over the life of your mortgage by making extra payments each year.
  • Administrative Changes: Your lender may charge a fee for changing your payment frequency, and you might need to set up automatic payments again.
  • Contractual Agreements: Check your mortgage contract for any specific terms related to payment frequency changes.

Working With Your Mortgage Broker

Have questions about which mortgage payment option is right for you? Contact me today to learn more about how we can align a plan to your unique circumstances.

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About Andrew Thake

Andrew Thake is a seasoned mortgage broker with over 15 years of industry experience. He’s assisted more than 2,200 clients in finding their ideal mortgage solutions. Recognized for his excellence, Andrew has received high honours and awards, including the National Rookie of the Year from TD Canada Trust and recognition as a Top 10 Ottawa Mortgage Broker in 2023. He has also been inducted into the Hall of Fame at Dominion Lending Centres and has consistently received their Platinum Award during his tenure as a mortgage broker.

Andrew’s dedication lies in serving his clients and prioritizing their needs with an empathetic approach. Throughout the application process, he provides tailored, informed, and efficient services to ensure the best mortgage solutions for his client’s unique circumstances. The best part of Andrew’s job is when he gets to see the joy on his clients’ faces following their mortgage approval.

Why not make your mortgage experience a comfortable one?

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