Accelerated vs Non-Accelerated Payment Calculator
Small Changes, Massive Savings
Payment Accelerator
Compare standard vs. accelerated payments to see your savings.
Disclaimer: This tool is provided for illustrative and educational purposes only. The results are estimates based on the information you provided and standard Canadian mortgage formulas; they do not constitute a guarantee of financing or an offer of credit. Interest rates, fees, and qualifying guidelines are subject to change without notice and depend on your unique credit profile, income, and property appraisal. We recommend consulting with a licensed mortgage professional at Lendtoday.ca before making any financial decisions.
Broker Tip: The “Hidden” Principal Effect “Most people think they save money because they pay ‘more often.’ That’s a myth. You save money because you pay more total. By making 13 months of payments in a 12-month year, every penny of that ’13th payment’ goes 100% toward your principal, not interest. It’s like giving yourself a guaranteed, tax-free return on your money.”
What is the difference between "Bi-Weekly" and "Accelerated Bi-Weekly"?
This is the most common confusion. A standard Bi-Weekly plan simply takes your annual mortgage total and divides it into 26 payments—it helps with budgeting but doesn’t actually pay off your mortgage faster. An Accelerated Bi-Weekly plan takes your monthly payment, divides it by two, and you pay that every two weeks. This results in 26 half-payments, which equals 13 full monthly payments per year.
How much time can I really save?
On a typical 25-year mortgage at a 5% interest rate, switching to an accelerated bi-weekly schedule can shave approximately 3 to 4 years off your total amortization. By making that “extra” monthly payment each year, you are chipping away at the principal faster, which means you pay significantly less interest over time.
Will an accelerated payment plan increase my interest rate?
No. Your payment frequency has no impact on your contract interest rate. It is simply a mathematical strategy to pay down the principal balance faster. In fact, by reducing the principal more quickly, you reduce the base on which interest is calculated, saving you money.
Is it hard to switch my payment frequency?
Most Canadian lenders allow you to change your payment frequency at any time during your term, often for free. At Lendtoday.ca, we recommend matching your mortgage payment to your paycheque (e.g., every second Friday) to make the “extra” payment feel almost invisible in your monthly budget.
Can I combine accelerated payments with lump-sum prepayments?
Absolutely! This is the “ultimate” fast-track strategy. Accelerated payments handle the steady, year-round progress, while lump-sum prepayments (like using a tax refund or work bonus) can knock out huge chunks of principal at once. Our team can help you check your mortgage “fine print” to see your maximum annual prepayment limit.
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