Accelerated Payments

Accelerated payments are a mortgage payment schedule that increases the total amount paid each year above the standard monthly equivalent, so the balance falls faster and the mortgage is paid off sooner. The best-known version is the accelerated bi-weekly payment: the lender takes the regular monthly payment, halves it, and collects that half every two weeks.

A year holds 26 two-week periods, so that schedule produces 26 half-payments — the same as 13 full monthly payments rather than 12. Accelerated weekly works the same way: the monthly payment is divided by four and collected 52 times a year, again totalling 13 monthly payments. The additional money is applied to principal, so less interest accrues over the remaining amortization period.

Accelerated versus regular schedules

Schedule	Payments per year	Annual total
Monthly	12	12 monthly payments
Bi-weekly (regular)	26	12 monthly payments
Accelerated bi-weekly	26	13 monthly payments
Accelerated weekly	52	13 monthly payments

The distinction matters because “bi-weekly” on its own does not mean accelerated. A regular bi-weekly schedule simply divides the monthly payment across 26 withdrawals; the annual total is unchanged and the payoff date is essentially the same. Only the accelerated version adds the extra payment. For fixed-rate mortgages in Canada, interest is compounded semi-annually, not in advance, so the timing of the extra payment still reduces the balance and the interest charged afterwards.

What it means for a borrower

Accelerated payments are a low-effort way to shorten a mortgage without arranging a separate lump sum. Because the extra payment arrives in small, scheduled amounts, it also tends to be easier to budget for than a year-end prepayment. Two practical points: the schedule is set out in the payment frequency clause of your mortgage commitment, and many lenders treat the extra amount as falling inside your prepayment privilege rather than as an early repayment — but not all do, so confirm how it is recorded. Switching frequency is usually free, though a lender may limit how often you can change it.

Things to check first

Whether the extra amount counts against your annual prepayment privilege.
Whether your cash flow can absorb a month that may contain three bi-weekly withdrawals.
Whether a lump-sum payment or a higher regular payment would suit your budget better.

Running the numbers side by side is the clearest way to see the effect. The biweekly vs monthly calculator and the guide to accelerated bi-weekly payments both show how a higher annual total shortens the amortization and reduces total interest.

Frequently asked questions

Does switching to accelerated payments trigger a prepayment penalty?

Usually not, because the extra amount is collected as part of your regular schedule rather than as a separate lump sum. Many lenders treat accelerated payments as falling within your prepayment privilege, but policies differ. Ask your lender or read your mortgage commitment to confirm how the extra payment is recorded and whether any conditions apply.

Is accelerated bi-weekly better than accelerated weekly?

Both produce the same annual total — the equivalent of one extra monthly payment — so the effect on your amortization is similar. Weekly payments simply spread the amount over more, smaller withdrawals, which some borrowers find easier to manage. The right choice is mostly about matching your pay cycle.

How much interest does an accelerated bi-weekly schedule save?

It depends on your balance, rate and remaining amortization, so no single figure applies to everyone. Because the extra payment reduces principal earlier, the saving grows with a larger balance, a higher rate and a longer remaining amortization. A prepayment or biweekly-versus-monthly calculator can estimate the effect using your own numbers.