Video #7 - Payment Options For Your Own Mortgage

When you purchase a property and take on your own mortgage, how much you pay and how often you pay it depends on which mortgage payment frequency option you choose. In Canada, you can choose from five different mortgage payment options: monthly, bi-weekly, accelerated bi-weekly, weekly, or accelerated weekly. The most popular payment options are monthly, bi-weekly, and accelerated bi-weekly. To see how all three could affect your mortgage payment and repayment, watch the video below.

What are the different mortgage payment options?

  • Monthly
  • Bi-weekly
  • Accelerated Bi-weekly
  • Weekly
  • Accelerated Weekly

What is a monthly mortgage payment?

A monthly mortgage payment is when your mortgage payment is withdrawn from your bank account on the same day of every month (i.e. on the 1st). With a monthly mortgage payment, you make 12 payments per year.

What is a bi-weekly mortgage payment?

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   Real Estate Terms 

      Amortization Period The number of years it will take to pay back your mortgage loan. Assignment Sale An Assignment Sale is when the original purchaser sells and/or transfers all the rights and obligations of the original contract between themselves and the Vendor to another party before the official completion date for the property. Title transfer for the property does not occur until the city issues the necessary permits and the unit is ready for occupancy. Assumability Allows the buyer to take over the sellers mortgage on the property. Building Permit A certificate that must be obtained from the municipality by the property owner or contractor before a building can be erected or repaired. It must be posted in a conspicuous place until the job is completed and passed as satisfactory by a municipal building inspector. Closed Mortgage A mortgage that locks you into a specific payment schedule. A penalty usually applies if you repay the loan in full before the end of a closed term. Closing Costs Costs, in addition to the purchase price of a home, such as legal fees, transfer fees, and disbursements, that are payable on the closing date. Closing costs typically range from 2 to 4 percent of a home's selling price.