Pay Your Mortgage Fast: Top 5 Mortgage Payment Options In Canada, You Can’t M

Have you ever taken a mortgage loan? Do you know about the different mortgage payment options? Well, if you do not, you are not alone. You need to know about these 5 repayment options?

It is common for Canadians to get a mortgage loan while purchasing their dream home. A recent survey reveals an average outstanding mortgage loan worth 1.4 trillion dollars every quarter.  

Let us explore the various payment options that you get to repay your mortgage loan. 

What Are the Different Mortgage Payment Options Based on Frequency of Repayments?

Are you thinking of repaying your mortgage loan quickly? Well, it truly depends upon:

• How much you pay towards your principal amount?

and

• How many times do you pay?

These two questions serve as the basis for the five mortgage payment options we will present next. Find the list below:

1. Monthly Mortgage Payment

If taking part in the New Year’s Levee is a tradition and a common thing in Canada towards the end of every year, so is the monthly mortgage payment with a typical mortgage loan. 

It is a by-default mode of repayment, and, unless otherwise stated, you will be required to repay your mortgage loan over its tenure by making regular monthly mortgage payments. 

The quantum of payments truly depends upon your Mortgage Rate and the Tenure (number of years) for which you have got your mortgage loan. 

Under this repayment schedule, make twelve payments every year that get debited from your bank account on a specific date (usually the first of every month). 

2. Bi-weekly/ Semi-Monthly Mortgage Payment

You have an option to make bi-weekly mortgage payments. 

It is a customized mortgage product and offers you an opportunity to make two payments towards your mortgage loan in a month, rather than the traditional one payment every month. 

Typically, you will make one payment on the first of every month and the second payment on the fifteenth. 

To make it more lucid, you will get 24 opportunities to make half mortgage payments towards your mortgage loan in a particular year, translates into 12 amounts in a single year.  

To determine the amount of each mortgage repayment, you will need to:

• Multiply 12 with your monthly mortgage payment (to arrive at the amount that you can repay in a year)
• Divide the amount got above by “24” as you will make 24 payments under this option

3. Accelerated Bi-weekly Mortgage Payment

Debt is the slavery of the free. Publilius Syrus (famous Latin writer, 85 BC to 43 BC) gave this quote in the days of yore. 

It still applies to every human, as everybody wants to pay the debt off as quickly as possible. So, live a free life by opting for this mortgage payment option, under which you will make mortgage payments 26 times a year.

To determine the amount of each mortgage repayment, you will need to:

• Multiply 12 with your monthly mortgage payment 
• Divide the amount got above by “26” as you will make 26 payments under this option

This option helps you make 13 full-mortgage payments in a year, serving you pay off your loan quickly.  

4. Weekly Mortgage Payment

Make it work, make it right, and make it fast. We all follow some mantras in life that define our conduct and destiny. Most Canadians almost unanimously scream, “We want to pay off our debts fast.” 

Well, the weekly mortgage payment option is here.

If you have the means and the ability to make a high mortgage payment, opting for a weekly mortgage payment can help you pay off your mortgage loan pretty fast, as you will do 52 amounts for 52 weeks in a year. 

To determine the amount of each mortgage repayment, you will need to:

• Multiply 12 with your monthly mortgage payment 
• Divide the amount got above by “52” as you will make 52 payments under this option

5. Accelerated Weekly Mortgage Payment

Finish your debt quickly and explore the world with all your loved ones.

A sped up weekly mortgage payment gives you an option to pay off your debt fast, allows you to augment your weekly repayments and reduces your overall amortization period. 

Under this option, you will still make 52 payments in a year, that is one repayment weekly, but:

• The amount paid under this accelerated option

would be higher than  

• The amount paid under the weekly option

Accumulating all the years together it helps you save thousands of dollars in interest cost. 

What Is a Lump-sum Mortgage Repayment?

Let the freedom ring from every mountainside. Some people prefer to remain free and do not want to commit any extra periodical repayment to pay off their debt faster. 

Instead, they rely on the lump-sum mortgage repayments, where they can pay an additional lump sum amount (calculated following a fixed percentage) over and above their monthly mortgage payments. 

The quantum of this additional amount varies from lender to lender, and to know this either:

• You will be required to go through your mortgage contract

Or

• You will be required to browse your lender’s website (in case you still haven’t taken a mortgage loan)

We note that if you follow this mortgage option and breach the limit set by your lender, you will be required to pay a mortgage prepayment penalty.   

Summary of the Different Mortgage Payment Options

Name of the Mortgage Payment Option	Divide the yearly mortgage payment by	Frequency of Repayment
Monthly Mortgage Payment	12	Once a Month
Bi-weekly Mortgage Payment	24	Twice a Month
Accelerated Bi-weekly Mortgage Payment	26	Every Second Week
Weekly Mortgage Payment	52	Every Week
Accelerated Weekly Mortgage Payment	52	Every Week (with a higher amount)
Lumpsum Mortgage Payment	Pay lump sum amounts any time of the year

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