Changing your payment frequency is one of the seemingly minor details that can have a significant impact on helping you become mortgage-free sooner. Simply put, payment frequency is how often you choose to make your mortgage payments.
Consider the following scenario:
Down Payment: $20,000
Interest Rate: 2.99%
Total Mortgage Amount(including CMHC fee): $395,200
Accelerated Bi-Weekly Payments
|Total Interest Paid||$144,994.34||$165,271.58|
|Mortgage Paid Off||22 Years 2 months||25 Years|
By choosing to pay your mortgage bi-weekly instead of on a monthly basis, you save $20,327.24 over the course of your mortgage, and you pay it off 2 years and 10 months sooner!
Yes. This can be done through your Broker, or by contacting your lender directly. Remember, even after your mortgage is closed, your Broker should be there to answer any questions or concerns you may have about your mortgage.
If you’re wondering how changing your payment frequency would affect your mortgage specifically, feel free to contact our office even if you are not a current client of ours. Our team is happy to help crunch the numbers and give you tips on becoming mortgage-free sooner!