Understanding Payment Frequency

Lee Welbanks • January 3, 2024

You’ve most likely heard that there are two certainties in life; death and taxes. Well, as it relates to your mortgage, the single certainty is that you will pay back what you borrow, plus interest. With that said, the frequency of how often you make payments to the lender is somewhat up to you!


The following looks at the different types of payment frequencies and how they impact your mortgage.


Here are the six payment frequency types


  1. Monthly payments – 12 payments per year
  2. Semi-Monthly payments – 24 payments per year
  3. Bi-weekly payments – 26 payments per year
  4. Weekly payments – 52 payments per year
  5. Accelerated bi-weekly payments – 26 payments per year
  6. Accelerated weekly payments – 52 payments per year


Options one through four are straightforward and designed to match your payment frequency with your employer. So if you get paid monthly, it makes sense to arrange your mortgage payments to come out a few days after payday. If you get paid every second Friday, it might make sense to have your mortgage payments match your payday.


However, options five and six have that word accelerated before the payment frequency. Accelerated bi-weekly and accelerated weekly payments accelerate how fast you pay down your mortgage. Choosing the accelerated option allows you to lower your overall cost of borrowing on autopilot. Here’s how it works.


With the accelerated bi-weekly payment frequency, you make 26 payments in the year. Instead of dividing the total annual payment by 26 payments, you divide the total yearly payment by 24 payments as if you set the payments as semi-monthly. Then you make 26 payments on the bi-weekly frequency at the higher amount.


So let’s use a $1000 payment as the example:


Monthly payments formula: $1000/1 with 12 payments per year. A payment of $1000 is made once per month for a total of $12,000 paid per year.


Semi-monthly formula: $1000/2 with 24 payments per year. A payment of $500 is paid twice per month for a total of $12,000 paid per year.


Bi-weekly formula: $1000 x 12 / 26 with 26 payments per year. A payment of $461.54 is made every second week for a total of $12,000 paid per year.


Accelerated bi-weekly formula: $1000/2 with 26 payments per year. A payment of $500 is made every second week for a total of $13,000 paid per year.


You see, by making the accelerated bi-weekly payments, it’s like you end up making two extra payments each year. By making a higher payment amount, you reduce your mortgage principal, which saves interest on the entire life of your mortgage.


The payments for accelerated weekly payments work the same way. It’s just that you’d be making 52 payments a year instead of 26.


By choosing an accelerated option for your payment frequency, you lower the overall cost of borrowing by making small extra payments as part of your regular payment schedule.


Now, exactly how much you’ll save over the life of your mortgage is hard to nail down. Calculations are hard to do because of the many variables; mortgages come with different amortization periods and terms with varying interest rates along the way. However, an accelerated bi-weekly payment schedule could reduce your amortization by up to three years if maintained throughout the life of your mortgage.


If you’d like to look at some of the numbers as they relate to you and your mortgage, please don’t hesitate to connect anytime; it would be a pleasure to work with you.

Lee Welbanks

Smart Steps to Get Your Home Market-Ready

By Lee Welbanks • July 29, 2026
Thinking About Selling Your Home? Start With These 3 Key Questions Selling your home is a major move—emotionally, financially, and logistically. Whether you're upsizing, downsizing, relocating, or just ready for a change, there are a few essential questions you should have answers to before you list that "For Sale" sign. 1. How Will I Get My Home Sale-Ready? Before your property hits the market, you’ll want to make sure it puts its best foot forward. That starts with understanding its current market value—and ends with a plan to maximize its appeal. A real estate professional can walk you through what similar homes in your area have sold for and help tailor a prep plan that aligns with current market conditions. Here are some things you might want to consider: Decluttering and removing personal items Minor touch-ups or repairs Fresh paint inside (and maybe outside too) Updated lighting or fixtures Professional staging Landscaping or exterior cleanup High-quality photos and possibly a virtual tour These aren’t must-dos, but smart investments here can often translate to a higher sale price and faster sale. 2. What Will It Actually Cost to Sell? It’s easy to look at the selling price and subtract your mortgage balance—but the real math is more nuanced. Here's a breakdown of the typical costs involved in selling a home: Real estate agent commissions (plus GST/HST) Legal fees Mortgage discharge fees (and possibly a penalty) Utility and property tax adjustments Moving expenses and/or storage costs That mortgage penalty can be especially tricky—it can sometimes be thousands of dollars, depending on your lender and how much time is left in your term. Not sure what it might cost you? I can help you estimate it. 3. What’s My Plan After the Sale? Knowing your next step is just as important as selling your current home. If you're buying again, don’t assume you’ll automatically qualify for a new mortgage just because you’ve had one before. Lending rules change, and so might your financial situation. Before you sell, talk to a mortgage professional to find out what you’re pre-approved for and what options are available. If you're planning to rent or relocate temporarily, think about timelines, storage, and transition costs. Clarity and preparation go a long way. The best way to reduce stress and make confident decisions is to work with professionals you trust—and ask all the questions you need. If you’re thinking about selling and want help mapping out your next steps, I’d be happy to chat anytime. Let’s make a smart plan, together.
Four coworkers in a bright office meeting around a laptop and papers, discussing work at a wooden table

Debt Cosolidation Strategy

By Lee Welbanks • July 22, 2026
How to Get Out of Debt Faster Debt has a way of quickly spiralling out of control, particularly if you face one of life’s most common financial obstacles – such as job loss/wage reduction, separation/divorce or illness/death. But, fortunately, there are debt-reduction strategies available to get you out of debt quicker and remain debt free! One popular debt-reduction strategy tackles your smallest debt balances first before moving up the chain to pay off larger ones. When the smallest debt is paid in full, you roll the minimum payment you were making on that debt into the next-smallest debt payment. Here’s how it works in bite-sized steps: Record your debts from smallest to largest regardless of interest rate Make minimum payments on all your debts except the smallest one Pay as much as possible on your smallest debt Repeat until each debt is paid in full Focus on outstanding balances, not interest rates If your largest debt has the largest interest rate, it’s going to be a long time before you even see a dent in that crazy balance of yours. But when you stick to the smallest balance plan, you’re going to feel a true sense of accomplishment as you pay off that debt super quick. That excitement is what’s going to motivate you to keep working hard until you’re completely out of debt. This debt strategy is effective because it’s all about changing your behaviour. And once you see positive results, you’re more encouraged to stay the course until you’re out of debt. Example Let’s say you have four different debts: $500 dental bill – $50 payment $2,500 credit card debt – $63 payment $7,000 car loan – $135 payment $10,000 student loan – $96 payment Using this debt strategy, you make minimum payments on everything except the $500 dental bill. Since you’re paying $550 a month on the dental bill (the $50 minimum payment plus the extra $500), that debt is completely gone in one month. Now you can take the freed-up $550 and attack your credit card debt, paying a total of $613 ($550 plus the $63 minimum payment). In about four months, you’ll be waving goodbye to that credit card debt too! Next, you’ll tackle the car loan to the tune of $748 a month ($613 plus $135). In 10 months, you’ll be driving a vehicle you actually own. By the time you reach that dreaded student loan (your biggest debt), you can put $844 a month towards it. That means you’ll be making your final payment in just 12 months. With all your hard work and sacrifice, throwing extra money into your debt strategy and staying focused on the goal, you’ll have paid off $20,000 in just 27 months! Wondering if this is the right debt strategy for you? I’m always here to help. Answers are a call or email away.