Understanding Payment Frequency

Kevin Blue • March 26, 2025

You’ve most likely heard that there are two certainties in life; death and taxes. Well, as it relates to your mortgage, the single certainty is that you will pay back what you borrow, plus interest. With that said, the frequency of how often you make payments to the lender is somewhat up to you!


The following looks at the different types of payment frequencies and how they impact your mortgage.


Here are the six payment frequency types


  1. Monthly payments – 12 payments per year
  2. Semi-Monthly payments – 24 payments per year
  3. Bi-weekly payments – 26 payments per year
  4. Weekly payments – 52 payments per year
  5. Accelerated bi-weekly payments – 26 payments per year
  6. Accelerated weekly payments – 52 payments per year


Options one through four are straightforward and designed to match your payment frequency with your employer. So if you get paid monthly, it makes sense to arrange your mortgage payments to come out a few days after payday. If you get paid every second Friday, it might make sense to have your mortgage payments match your payday.


However, options five and six have that word accelerated before the payment frequency. Accelerated bi-weekly and accelerated weekly payments accelerate how fast you pay down your mortgage. Choosing the accelerated option allows you to lower your overall cost of borrowing on autopilot. Here’s how it works.


With the accelerated bi-weekly payment frequency, you make 26 payments in the year. Instead of dividing the total annual payment by 26 payments, you divide the total yearly payment by 24 payments as if you set the payments as semi-monthly. Then you make 26 payments on the bi-weekly frequency at the higher amount.


So let’s use a $1000 payment as the example:


Monthly payments formula: $1000/1 with 12 payments per year. A payment of $1000 is made once per month for a total of $12,000 paid per year.


Semi-monthly formula: $1000/2 with 24 payments per year. A payment of $500 is paid twice per month for a total of $12,000 paid per year.


Bi-weekly formula: $1000 x 12 / 26 with 26 payments per year. A payment of $461.54 is made every second week for a total of $12,000 paid per year.


Accelerated bi-weekly formula: $1000/2 with 26 payments per year. A payment of $500 is made every second week for a total of $13,000 paid per year.


You see, by making the accelerated bi-weekly payments, it’s like you end up making two extra payments each year. By making a higher payment amount, you reduce your mortgage principal, which saves interest on the entire life of your mortgage.


The payments for accelerated weekly payments work the same way. It’s just that you’d be making 52 payments a year instead of 26.


By choosing an accelerated option for your payment frequency, you lower the overall cost of borrowing by making small extra payments as part of your regular payment schedule.


Now, exactly how much you’ll save over the life of your mortgage is hard to nail down. Calculations are hard to do because of the many variables; mortgages come with different amortization periods and terms with varying interest rates along the way. However, an accelerated bi-weekly payment schedule could reduce your amortization by up to three years if maintained throughout the life of your mortgage.


If you’d like to look at some of the numbers as they relate to you and your mortgage, please don’t hesitate to connect anytime; it would be a pleasure to work with you.
KEVIN
MORTGAGE BROKER

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Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart

By Kevin Blue • November 4, 2026
Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart There’s no denying it—buying a home is an emotional journey. In a competitive market, it can feel like you need to stretch beyond your comfort zone or bid above asking just to have a chance. That pressure can make it hard to separate what you want from what you can realistically afford. One of the biggest pitfalls buyers face is falling in love with a home that’s outside their price range. Once that happens, every other property seems like a compromise—even the ones that might have been a perfect fit otherwise. The best way to avoid this heartache? Get pre-approved before you start shopping. What a Pre-Approval Does for You A mortgage pre-approval gives you more than just a number—it provides clarity, confidence, and protection: Know your buying power : Shop within your true price range and avoid disappointment. Spot potential roadblocks : Uncover issues like credit bureau errors before you make an offer. Get organized : Learn exactly what documentation you’ll need so there are no surprises. Lock in a rate : Many lenders hold your rate for 30–120 days, giving you peace of mind if rates rise. Save yourself heartache : Protect yourself from falling for a home you can’t afford. Head vs. Heart Buying a home is about balance. Your head tells you what’s financially sound, your heart tells you what feels right—and both matter. A pre-approval helps bring those two sides together, so you can make confident choices without emotional stress clouding your judgment. The Bottom Line Looking at properties for fun is one thing—but if you’re serious about buying, a pre-approval is the smartest first step you can take. It sets realistic expectations, saves time, and protects your emotions along the way. If you’d like to explore your options and get pre-approved, I’d be happy to walk through the process with you. Let’s make sure you’re ready to shop with confidence.

Bank of Canada Raises Rates to 2.5%: What It Means for Vancouver Island Borrowers

By Kevin Blue • October 28, 2026
This morning, the Bank of Canada raised its key interest rate by 0.25%, bringing it to 2.5%. Whether you own a home in Parksville or Qualicum Beach, have a renewal on the horizon, or you're in the middle of a build or commercial deal, this decision is worth understanding. Here's what changed, why it happened, and what I'd be thinking about if I were in your shoes.  Why the Bank of Canada Raised Rates The short answer is inflation. Prices have been rising faster than the Bank's 2% target, and it wants to get ahead of the problem before it spreads. Here's what's behind the decision: High energy prices. The ongoing conflict in the Middle East has kept oil prices elevated for months. Inflation has been running around 3% since April and is expected to reach about 3.5% by the end of the year. Rising business costs. Higher fuel and imported material costs are making it more expensive to produce and ship goods. The Bank expects more of those costs to be passed on to consumers over the next year. A stronger economy than expected. Canada's economy grew faster than forecast through the middle of the year, supported by solid consumer spending and a rebound in business investment. By raising rates now, the Bank is trying to stop high energy costs from pushing up the price of everything else. What This Means for Homeowners Variable-rate mortgages and HELOCs Lenders typically adjust their prime rate to match the Bank of Canada's moves, and variable mortgages and home equity lines of credit are tied to prime. Expect your rate to go up by about 0.25%. Depending on your mortgage, that means either a higher payment or more of your payment going to interest. Fixed-rate mortgages Your rate and payment won't change until your term ends. Fixed rates for new mortgages follow the bond market, and bond yields have already been rising, so fixed rates may stay elevated or move higher. Renewals If your renewal is within the next few months, start the conversation now. Many lenders let you secure a rate up to 120 days in advance, which can protect you if rates keep climbing. And please don't just sign your bank's renewal letter. It's rarely their best offer. Buyers Higher rates can reduce how much you qualify for. A pre-approval lets you hold a rate while you shop, so you know your real budget before making an offer. My mortgage calculators are a good place to start running numbers. What This Means for Builds, Commercial and Private Deals This is where rate changes can have the biggest ripple effect, and where planning ahead pays off most. Construction projects Many construction and draw mortgages are tied to prime during the build, so your interest costs may rise as funds are advanced. If you're mid-build, it's worth reviewing your budget for carrying costs. If you're planning a project, factor today's rates into your numbers from day one. Learn more about my construction financing services. Commercial borrowers Variable commercial loans will feel this increase directly. If you're refinancing or acquiring a property, higher rates can affect how lenders view your debt coverage, so the structure of the deal matters more than ever. See my commercial lending page for the types of files I work on. Private lending Private loans are usually short-term bridges to institutional financing. When rates are rising, your exit strategy deserves extra attention. Make sure the takeout financing still works at today's rates, not just the rates you assumed when the deal started. Read more about private lending . What to Expect Next The Bank of Canada said further increases are possible, but it plans to move carefully given uncertainty around energy prices and Canada-US trade. Its forecast has inflation averaging about 3% through 2027 before returning to the 2% target by mid-2028. The next rate announcement is scheduled for December 9, 2026 . Frequently Asked Questions What is the Bank of Canada's rate now? As of October 28, 2026, the Bank of Canada's policy rate is 2.5%, up from 2.25%. Will my mortgage payment go up? If you have a variable-rate mortgage, a HELOC or a prime-based construction loan, it likely will. Fixed-rate mortgages won't change until the term ends. Should I lock in a fixed rate? It depends on your terms, any penalties for switching, and your plans for the property. This is exactly what my annual mortgage reviews are for, and the right answer looks different for everyone. When is the next rate announcement? December 9, 2026. Let's Talk About Your Situation Rate changes are a good reminder to check that your financing still fits your plans. Whether you're a homeowner in Parksville or Qualicum Beach, mid-way through a build, or working on a commercial or private deal anywhere on Vancouver Island, I'd be happy to review where you stand. Reach out anytime, or apply online to get started. No obligation, no pressure. This article is for general information only and is not financial advice. Rates and lender policies change often. Please speak with a licensed mortgage professional about your specific situation.

Breaking Down the Real Costs of Homeownership

By Kevin Blue • October 21, 2026
Don’t Forget About Closing Costs When planning to buy a home, most people focus on saving for the down payment. But the truth is, that’s only part of the equation. To actually finalize the purchase, you’ll also need to budget for closing costs —the out-of-pocket expenses that come up before you get the keys. Closing costs can add up quickly, which is why they should be part of your pre-approval conversation right from the start. Lenders will even require proof that you’ve got enough funds set aside. For example, if you’re getting an insured (high-ratio) mortgage, you’ll need at least 1.5% of the purchase price available in addition to your down payment. That means a 10% down payment actually requires 11.5% of the purchase price in cash to make everything work. Let’s break down some of the most common expenses you should prepare for: 1. Home Inspection & Appraisal Inspection : Paid by you, this gives peace of mind that the property is in good shape and doesn’t have hidden problems. Appraisal : Required by the lender to confirm value. Sometimes this is covered by mortgage insurance, sometimes by you. 2. Legal Fees A lawyer or notary is required to handle the title transfer and make sure the mortgage is properly registered. Legal fees are often one of the larger closing costs—unless you’re also responsible for property transfer tax. 3. Taxes Many provinces charge a property or land transfer tax based on the home’s purchase price. These fees can range from hundreds to thousands of dollars, so you’ll want to factor them in early. 4. Insurance Property insurance is mandatory—lenders won’t release funds without proof that the home is insured on closing day. Optional coverage like mortgage life, disability, or critical illness insurance may also be worth considering depending on your financial plan. 5. Moving Costs Whether you’re renting a truck, hiring movers, or bribing friends with pizza and gas money, moving comes with expenses. Cross-country moves especially can be surprisingly pricey. 6. Utilities & Deposits Setting up new services (electricity, water, internet) can involve connection fees or deposits, particularly if you don’t already have a payment history with the utility provider. Plan Ahead, Stress Less This list covers the big-ticket items, but every purchase is unique. That’s why it pays to have an accurate estimate of your personal closing costs before you make an offer. If you’d like help planning ahead—or want a breakdown tailored to your situation—let’s connect. I’d be happy to walk you through the numbers and make sure you’re fully prepared.