What’s the Difference and Which One Is Better for You?

When you're setting up your mortgage, one of the first decisions you'll need to make is how often you want to make your payments. The two most common choices in Ontario are monthly and bi-weekly. On the surface, it might not seem like a big deal—but how often you pay can make a real difference in interest savings and how quickly you pay off your home.

Monthly Payments

Monthly payments are exactly what they sound like. You make one mortgage payment on the same date each month. It’s predictable, easy to manage, and works well if your income comes in monthly or if you like consistency in your budgeting.

With a monthly schedule, you’ll make 12 payments per year.

Bi-Weekly Payments

Bi-weekly payments are made every two weeks. This adds up to 26 payments per year which is the equivalent of 13 full monthly payments instead of 12.

That one extra payment might not seem like much, but over time it can have a big impact. It goes straight toward your principal, which helps reduce the total interest you pay and can shave years off your mortgage.

Here’s a quick example:

Let’s say you have a $500,000 mortgage at a 5% interest rate over 25 years.

So Which One Should You Choose?

It depends on your goals and your cash flow.

You can also go with accelerated bi-weekly payments—this is different from just splitting your monthly payment in two. Accelerated payments are slightly higher, designed to equal 13 full payments per year rather than 12.

Final Thought

There’s no one-size-fits-all answer. The best option is the one that works with your lifestyle and helps you reach your goals. If you want help running the numbers or figuring out what fits your budget best, I’d be happy to walk you through the options.