Repayment Options

The lenders that Canadian Lending Network deals with offer very flexible repayment options. These include the availability of weekly, bi-Weekly, semi- monthly, and monthly payment plans.

There are no great savings in the amount of interest paid between the various repayment plans, except for the accelerated options. When choosing a repayment plan you should consider what is convenient and practical for you. If your salary is paid on a monthly basis, a monthly payment is probably the way to go. If you are paid semi monthly or every other week, the semi-monthly or bi-weekly options may be best.

Accelerated Payment Plans

An Accelerated Payment Plan is a great way to save thousands of dollars of interest and be mortgage free years earlier. The savings are a result of the additional principal amounts paid each month. Any payment plan can be accelerated, simply by pre-paying an amount each month or decreasing your amortization.

Accelerated weekly and accelerated bi-weekly payment options are calculated by taking a monthly payment schedule and assuming there are only four weeks in a month. We calculate an accelerated bi-weekly payment, for example, by taking your normal monthly payment and dividing it by two. Since you would pay 26 bi-weekly payments, by the end of a year you would have paid the equivalent of one extra monthly payment. The accelerated weekly payment is calculated by dividing your monthly payment by four. You would then make 52 weekly payments. Just like the accelerated bi- weekly payments, you are in effect paying an additional monthly payment each year

This additional amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands of dollars in interest and take years off of your mortgage.