Which Payment Frequency to Choose?

Choosing Your Mortgage Payment Frequency

When setting up your mortgage, one important decision is how often you'll make payments. The frequency you choose can impact both your budget and how quickly you pay off your mortgage.

Common Payment Frequencies

Monthly: Traditional approach with 12 payments per year. Simple budgeting aligned with most salary schedules.

Bi-weekly: Payments every two weeks (26 payments annually). This results in one extra monthly payment per year, helping you pay off your mortgage faster.

Accelerated Bi-weekly: Takes your monthly payment, divides it by two, and pays that amount every two weeks. This creates the equivalent of 13 monthly payments per year, significantly reducing your amortization period.

Weekly: 52 payments per year, ideal if you're paid weekly.

Which Should You Choose?

Consider your cash flow, pay schedule, and financial goals. Accelerated payment frequencies can save thousands in interest over the life of your mortgage, but ensure the payment schedule aligns with your income to avoid missed payments.