, but once you’re familiar with how it works, it’s not as complicated as it seems! One thing every homeowner will need to decide is how often they want to make mortgage payments. With several options available, let’s break them down so it is easy to understand—because who doesn’t love stress-free learning? 
1.Monthly Payments
This is the classic way to pay your mortgage, and probably the one you hear about the most.
How it works: You make a payment once a month, just like your Netflix bill (except way bigger!). The bank calculates your interest for the month, and your payment goes toward that interest plus a chunk of your principal (the actual borrowed amount).
Pros:
– Simple & predictable: Budgeting is easy when you only need to think about it once a month.
– Best for: People who like structure and don’t want to think about their mortgage too often.
Cons:
– Less interest savings: Because you’re paying less frequently than other options, interest adds up more, making you pay more interest in the long run.
2.Bi-Weekly Payments
Here, you’re making a payment every two weeks instead of once a month. Easy right?
How it works: You’ll pay half of what you would for a monthly payment every two weeks. Since there are 52 weeks in a year, this means you end up making 26 payments (or 13 full payments) in total. Sneaky, right? In a way yes, but better for the consumer!
Pros:
– Interest savings: Since you’re making payments more often, you pay down the loan faster, reducing the total interest spent on your mortgage.
– Best for: People who get paid bi-weekly and want to sync their mortgage payments with their paycheck.
Cons:
– Feels more frequent: Obviously because it is… But some might find the payments come around quicker than expected, especially if budgeting is tight.
Want to make paying your mortgage even more frequent? Weekly payments break your total monthly payment into four chunks, spread throughout the month.
How it works: You’ll pay a quarter of your monthly payment every week. Just like with bi-weekly, you’re making more payments over the year—52 in total. This way, interest accumulates and gets paid the most often, reducing the total amount paid.
Pros:
– Even more interest savings: More payments = faster mortgage payoff = less interest.
– Cash-flow friendly: If you’re paid weekly, it makes sense to align your payments with your income.
– Best for: People with regular, weekly paychecks or those who want to accelerate mortgage payoff.
Cons:
– Super frequent payments: Some may find it annoying to make payments so often, even if it’s small amounts.
4. Accelerated Payments (Bi-Weekly/Weekly)
Here’s where things get turbocharged! “Accelerated” versions of bi-weekly or weekly payments add a bit more to each payment so you end up paying off your mortgage faster.
How it works: Accelerated bi-weekly means paying half of a monthly payment every two weeks *plus a little extra*. Accelerated weekly? Same idea—pay a little extra each week. By adding this “extra” amount to your mortgage, you are able to pay down more capital which reduces the amount of interest and total amortization of your mortgage in a big way! It usually allows homeowners to pay off their mortgages approximately 3-5 years FASTER than the average monthly payment!
Pros:
– Big-time interest savings: These options let you crush your mortgage faster, saving you serious money in interest over time.
– Best for: People who are serious about paying down their mortgage quickly and can handle slightly higher payments.
Cons:
– Higher payments: You’ll need a bit more room in your budget for these suckers. Definitely makes day-to-day spending a bit tighter.
So, which one is for you?
– Monthly: Go for this if you like predictability and don’t want to think about your mortgage too often.
– Bi-Weekly/Weekly: These are for you if you’re comfortable making smaller, more frequent payments and love the idea of saving on interest.
– Accelerated: Perfect for the ambitious saver who wants to pay off their home quicker and save big on interest.
With these options, there’s no “one size fits all”—just pick the one that fits your financial lifestyle best. 
Whether you prefer the chill, low-maintenance route or you want to turbocharge your payments, you’ve got the power to choose what’s right for you! Ask your mortgage broker and find out what is right for you before signing the mortgage documents!
