# How much can accelerated bi-weekly payments save on a Canadian mortgage?

> Accelerated bi-weekly payments (ABW) save significant interest by making the equivalent of one extra monthly payment per year, shortening a 25-year amortization by roughly 3-4 years.

Category: Strategy
Last verified: 2026-04-19
Source: https://ratellow.com/faqs/strategy/accelerated-biweekly-savings-canada

## Answer
Accelerated bi-weekly payments divide your monthly payment in half and debit it every two weeks — 26 payments per year instead of 24. This means you effectively make 13 monthly payments annually instead of 12. On a $500,000 mortgage at 5.00% with a 25-year amortization, switching from monthly to accelerated bi-weekly payments saves approximately $40,000–$55,000 in interest over the life of the mortgage and cuts roughly 3.5 years off the amortization. Regular bi-weekly payments (splitting the annual total into 26 equal parts) do NOT accelerate paydown — the key word is 'accelerated.' Most Canadian lenders offer ABW as a standard option at no charge. Combined with annual prepayment privileges (typically 15–20% lump sum), ABW is one of the most effective no-cost tools for Canadian homeowners.

## Institutional highlights
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## Related guide
- https://ratellow.com/guides/mortgage-prepayment-privileges

## Sources
- FCAC Mortgage Payment Frequency — https://www.canada.ca/en/financial-consumer-agency/services/mortgages/mortgage-payment-frequency.html