What is the best payment frequency for a mortgage?

When you check the chart above, you can see payment frequency has little effect in the short-term. Considering Canadians seldom stay in the same home throughout the lifetime of their mortgage, it doesn’t make sense to choose a payment frequency based on long-term benefits. As a result, the best payment frequency for a mortgage is the one that is easiest for you to manage. You should be able to manage your other debts, save, and have enough disposable income to cover your everyday expenses. If you intend to stay in your home for decades and have financial wiggle room, some of these options can help you build equity quicker and save you money.

Do biweekly payments shorten mortgage length?

Yes, because you reduce your principal by a small amount which reduces the interest you pay. However, you will only notice the cumulative effect over the long-term. If you don’t intend to stay in your home for many years, you won’t see much difference. Based on the example in the chart above, a 25-year mortgage paid through bi-weekly payments would shorten the amortization by three years.

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