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Mortgage payoff

How fast accelerated bi-weekly + extra principal pays off your mortgage and how much interest that saves.

What this is

Pay off the house faster, pay less interest

Two tricks shorten a Canadian mortgage by years. They cost a little more cash flow but save tens of thousands in interest.

  • ·Accelerated bi-weekly: half your monthly payment, every two weeks. 26 payments/yr = 13 monthly payments/yr (one extra hidden in the schedule).
  • ·Extra monthly principal: any amount you tack on goes straight to principal. $200/mo on a $400k mortgage can shave 4-5 years off.
  • ·Both stack — combine them for the biggest reduction.

Base monthly payment

$2,443

Months saved

72

Interest saved

$84,236

Total interest (accelerated)

$228,682

Educational projection. Not financial advice. Assumes a fixed rate for the full term. Variable-rate mortgages will differ as the Bank of Canada moves.

Amortization chart

Balance over time

Each line shows what you still owe each month. The base schedule (solid red) is what your bank ran the numbers on at the original term. The accelerated line (dashed green) crashes faster because extra payments + bi-weekly cadence chop principal off the top early — and less remaining principal means less interest accruing each month.

$0$100K$200K$300K$400K05y10y15y20y25ymonths → yearsBalance owed
Base scheduleAccelerated

The gap between the two curves at any month = your equity head start. Total area between them ≈ interest saved.