Amortization and Payment Frequency: How They Change What You Pay

Mortgage Education

By Charandeep Deol, Mortgage Agent Level 2 · Updated October 2026 · 5 min read

Two settings shape your mortgage more than most people realize: how long you take to pay it off, and how often you pay.

Amortization vs. term

Amortization is the total time to pay off the mortgage (for example 25 or 30 years). The term is the length of your current rate and contract (for example 5 years), after which you renew.

25 vs. 30 years

Example: a $560,000 mortgage at 4.50% (Canadian semi-annual compounding):

Amortization	Monthly payment	Total interest over the full amortization
25 years	about $3,099	about $369,800
30 years	about $2,824	about $456,500

The 30-year option lowers the payment by roughly $275 a month, but costs about $86,000 more in interest over the full period, assuming the rate stayed the same, which it won't over that long. These are illustrations, not quotes.

First-time buyers and buyers of new builds can access 30-year amortizations on insured mortgages. Insured mortgages with amortization over 25 years have a 0.20% insurance surcharge. See the down payment guide.

Payment frequency

• Monthly: 12 payments a year
• Semi-monthly: 24 payments a year
• Bi-weekly: 26 payments, every two weeks
• Accelerated bi-weekly: the monthly payment ÷ 2, paid every two weeks (26 payments)
• Weekly and accelerated weekly work similarly

Because there are 26 bi-weekly periods in a year, accelerated bi-weekly adds up to 13 monthly payments a year instead of 12. On the example above ($2,824 monthly), that's roughly $1,412 every two weeks, about $36,700 a year vs. about $33,900 monthly, an extra payment of about $2,800 toward your mortgage each year. That shortens your amortization and saves interest.

Other ways to pay it off faster

• Use annual lump-sum prepayment privileges
• Increase your regular payment when you can
• Put windfalls (bonuses, tax refunds) toward the principal

Check your contract for limits. Try different options in our payment calculator.

Sources and further reading

• CMHC: Mortgage loan insurance premiums

This article is general information, not personalized mortgage, legal, tax or financial advice. Rules, rates and eligibility change and depend on your circumstances and lender criteria. Confirm details before you make decisions.