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Personal Banking > Mortgages > Manage Your RBC Mortgage > Pay Down Your Mortgage Faster > Accelerating Your Payment Schedule

Accelerating Your Mortgage Payment Schedule

RBC Royal Bank offers you this great choice of payment options:

  • Monthly
  • Semi-monthly
  • Bi-weekly
  • Weekly
  • Accelerated bi-weekly
  • Accelerated weekly

You also have the freedom to choose the day of the week or date of the month your mortgage payment is due, so you can schedule your payment to coincide with your paycheque — a convenient budgeting feature.

 

Increasing Your Payment Frequency

You can save interest by increasing your mortgage payment frequency. When you select an accelerated weekly or bi-weekly payment option, you are essentially making the equivalent of one additional monthly payment each year which will help pay off your mortgage faster.

Example: $150,000 Fixed-Rate Mortgage at 5.5%(8)

This chart illustrates how you can reduce your amortization period and save on interest costs by choosing a more frequent payment schedule.

Example
Payment Amount Amortization (Years) Amortization Interest Cost(9)
Monthly $915.59 25.0 $124,675.23
Semi-monthly $457.80 25.0 $124,013.33
Bi-weekly $422.58 24.8 $122,919.67
Weekly $211.29 24.8 $122,620.77
Accelerated bi-weekly(10) $457.80 21.2 $102,289.95
Accelerated weekly(11) $228.90 21.2 $102,044.46

In this example, choosing accelerated bi-weekly payments instead of monthly payments on a $150,000 mortgage would save you more than $22,000 in interest costs, and cut more than 3.5 years off the life of your mortgage.

You can change your payment frequency without cost at any time during your mortgage term.

 

We're Here to Help

Call us today about managing your mortgage. We can help explain your options and offer advice on mortgage solutions to help you achieve your goals.

Call 1-800-769-2511

 
 

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