Let's Talk House Episode 21: The Mortgage Hack Most Canadians Miss (That Could Save You over $100,000)

What if you could shave four years off your mortgage and save over $100,000—without earning more, working more, or even changing your monthly budget?

In this episode of Let’s Talk House, Lei breaks down the simple mortgage payment switch that most Canadians have never even heard of. It’s not refinancing. It’s not a side hustle. It’s not even about increasing your payments.

It’s just one tiny checkbox that your lender probably didn’t mention—and it could fast-track your journey to becoming mortgage-free.

🔥 You’ll learn:

• Why monthly payments cost you more in the long run
• How accelerated bi-weekly payments quietly build wealth
• The most common mistake Canadian homeowners make
• What to ask your lender right now to unlock serious savings

Whether you're a first-time buyer, current homeowner, or renewing soon—this is a must-listen. Real advice, Canadian context, no fluff.

🎧 Hit play. Your future mortgage-free self will thank you.

A big shoutout to Feedspot for choosing us as one of their Top 80 picks for Real Estate podcast in Canada. Here's a link to this article: https://podcast.feedspot.com/canada_real_estate_podcasts/

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Chapters

• 0:00 Introduction to Mortgage Savings
• 1:05 Typical Mortgage Scenario
• 2:10 Accelerated Bi-Weekly Payments Explained
• 2:55 Why Accelerated Payments Work?
• 3:44 Who Benefits from This Strategy?
• 4:03 Recap and Final Tips
• 4:29 Bonus Tips for Extra Savings
• 5:08 Conclusion and Next Steps

Transcript

Lei: 0:00

You’ve probably been told to focus on getting the lowest mortgage rate possible. But what if I told you there’s a tiny checkbox in your mortgage paperwork that, if selected, could save you more than $100,000 in interest and most Canadians don’t even know it exists? In today's episode, we’re unpacking a mortgage strategy that requires no side hustle, no refinancing, and no budgeting magic. Just one smart switch. Only here at let's talk house, your go-to source for all things real estate, mortgage and beyond in Toronto and the Greater Toronto Area in Canada. Welcome Home. I'm your host, Lei Villar-Cisneros. Before we get started, a big shout out to Feedspot for choosing us as one of the top 80 podcasts in Canada for 2025. To learn more about Feedspot, check out their website. Now, let's get started. Let’s take a typical scenario. You’re buying a $700,000 home here in Canada. According to Canada’s mortgage rules, you’d need: 5% down on the first $500,000 that's $25,000 10% down on the remaining $200,000 or $20,000 That gives you a total minimum down payment of $45,000. Your mortgage? Around $655,000, and once we add in CMHC insurance, we’ll round it to about $681,000. Now let’s say your interest rate is 5.5% over 25 years pretty average these days. That gives you a monthly payment of around $4,100. But here’s the kicker: over the life of the mortgage, you’d pay $566,000 in interest alone. So your $681,000 mortgage? Actually ends up costing you over a million dollars when it’s all said and done. What if I told you that you could cut that interest by over $100,000 and shave 4 years off your mortgage without spending a penny more per month? That’s where accelerated bi-weekly payments come in. Here’s how it works: Instead of one monthly payment of $4,100, You pay half of that ($2,050) every two weeks. Now there are 52 weeks in a year, which means 26 half-payments or 13 full payments per year. So you’re sneaking in one extra mortgage payment a year, without even feeling it. Using this strategy, you cut your amortization from 25 years to around 21 years. And that massive interest bill of $566,000? Drops to around $468,000. That’s a $100,000 savings just by changing your payment frequency. And the best part? You don’t have to change your budget. You just align your payments with your paycheque if you’re paid bi-weekly. So, why does this work? In Canada, mortgage interest is calculated on your outstanding loan balance. The faster you reduce that balance, the less interest gets charged next time. Each extra dollar toward your principal snowballs: Less interest means more of your payment goes to principal That speeds up your mortgage reduction Which then reduces even more interest It’s like a compounding effect but working for you instead of your bank. Now don’t confuse bi-weekly with accelerated bi-weekly. Regular bi-weekly just splits your annual payment into 26 installments. No bonus there. Accelerated bi-weekly takes your monthly payment, splits it in half, and makes 26 payments giving you an extra full payment every year. Only accelerated gets you that interest savings. So, who does this work for? If you’re paid bi-weekly? This is a perfect fit for your cash flow. If your lender allows free payment frequency changes? Even better. And if you’re someone who wants to save money without overthinking it every month this is the move. And yes it works whether you’re on a fixed or variable rate. Here’s the recap: Same monthly cash out 4 years off your mortgage About $100,000 in interest saved No refinancing, no magic just one smart switch It’s one of the most overlooked strategies in Canadian mortgage planning. So, if you’ve got a mortgage, or you’re about to sign one… Ask your lender: “Am I on accelerated bi-weekly payments?” And if not, request to switch. It could be the easiest $100,000 you ever save. Before we end, why don't I give you a bonus tip or 2. If you round up your mortgage payment, say you're paying 640 or 635 biweekly, round it to $650 or 700 if you can afford it. You might be surprised how many months it will shave off of your mortgage and saving tens of thousands of dollars in the process. Now, for another bonus, if you have extra money each month, or whenever you have extra, if you add $100 to each payment, you wil save years from your mortgage life. When it comes to paying your mortgage, every penny counts. We're here to help you navigate real estate with confidence, clarity, and smart strategies that actually work for Canadians. If this episode helped you, share it with a friend, leave a review, or follow the podcast for more actionable advice but if you'd rather watch it, check us out on Youtube at @LeiVillarRealEstate or read us at HomesByLei.com/blog. Until next time stay smart, stay curious, and let’s talk house. You have been listening to Let's Talk House podcast. Tune in for more on the next episode. Follow us in Facebook, Youtube or Instagram at @ LeiVillarRealEstate.