Monthly, bi-weekly accelerated. Which is better for you?

General Darick Battaglia 27 Sep


Accelerated weekly and accelerated bi-weekly payment options are calculated by taking a monthly payment schedule and assuming only four weeks in a month. We calculate an accelerated weekly payment, for example, by taking your normal monthly payment and dividing it by four. Since you pay 52 weekly payments, by the end of a year you have paid the equivalent of one extra monthly payment. This additional amount accelerates your mortgage payoff by going directly against your mortgage’s principal. The effect can save you thousands in interest and take years off of your mortgage.

The accelerated bi-weekly payment is calculated by dividing your monthly payment by two. You then make 26 bi-weekly payments. Just like the accelerated weekly payments you are in effect paying an additional monthly payment per year

Lock in or go Variable today

General Darick Battaglia 16 Sep

Don’ t lock in your rate.

The Variable rate mortgage is tied to prime and can still be had for as little as 2.55% whereas the five year fixed rate is at 3.59%

what is the risk?  The Bank of Canada’s key lending rate, which prime is tied to, hasn’t moved in three years and some economists maintain it won’t be moving until 2015.