These payments are determined by taking your full monthly payment and dividing it by 4. Just like in the example of the accelerated-biweekly payments their will be months where you’ll end up paying beyond your monthly payment and achieve some interest savings as a result. For example, 4 months of the year you will have […]
All posts by the mint mortgage crew
the mint mortgage crew
What does it mean to have a “weekly” payment frequency?
Weekly payments are determined by taking the full sum to be paid within the next 12 months and dividing it by 52. You’ll now make a payment every week on a scheduled day (like a Friday). Some people love this option because it provides weekly consistency to their budget; so they aren’t hit with a large payment […]
What does it mean to have an “accelerated bi-weekly” payment frequency?
By arranging your mortgage payments to be paid in an accelerated bi-weekly way, you can actually see some significant savings in interest. These types of payments are determined by taking your monthly payment and dividing it by 2. You then make that half payment every 2 weeks. This means that since you’ll be paying a […]
What does it mean to have a “bi-weekly” payment frequency?
This payment frequency takes the total amount of payments that you are supposed to be paying in the next 12 months, and divides it by 26. (52 weeks in a year, with a payment every 2 weeks = 26 payments). This can be helpful for those who want to have their mortgage payments aligned with their […]
What does it mean to have a “semi-monthly” payment frequency?
Instead of one big payment during the month, bi-monthly payments allow you to make 2 half payments each month (the sum adding up the monthly payment). Typically, people arrange this so that the 1st and 15th of every month is a half payment, allowing them to achieve some minor savings (by paying some of the […]
What does it mean to have a “monthly” payment frequency?
This is your standard payment frequency and allows you to make 12 equal payments on the same day of every month. It puts predictability into what days of the year your next payment will be, and can be super helpful for those who only experience a pay day once a month.
What are my “payment frequency” options?
The two most common payment frequencies are monthly and accelerated bi-weekly payments, although the option does exist to do semi-monthly, bi-weekly, weekly and accelerated weekly. Here’s a quick run through of each. Monthly Semi-monthly Bi-weekly Accelerated bi-weekly Weekly Accelerated weekly Phew! Take a break and reward yourself if you read all that 🙂
Do I have to wait until my mortgage matures to make any changes?
Short answer: No. Longer answer: Nope. Explanation of the longer answer: Almost all mortgages can be broken at any time, so you don’t have to wait until maturity to make changes. The penalty and fees in order to be able to break that mortgage early can vary widely however – enough that you’ll want to […]
Can I get a mortgage if I just started a new job?
That’s a definite maybe! 🙂 The truth is that it depends on a wide range of factors. If, for instance, you’ve started a new job at the same employer, that’s a good thing. Or even if it’s a different employer but you have a proven history within that industry, you’ve got some good odds. Being a […]
What are “CMHC Fees”?
“CMHC fees” are classified as mortgage default insurance. These fees depend on a few factors, but the two largest factors are if you are self-employed, with difficult to prove income, and the amount of your downpayment. If you can get to 20% down, there is a good chance you won’t have to cough up any of […]