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/

#podcast #realestatepodcast #realestateadvice #torontorealestate #torontomortgage #mortgagetips #torontomortgage #payingdownmortgage #realestatetips #dreamhome #realestategoals #ThursdayTips #thursday #realestateagent #firsttimebuyer #homehack #homehacks #torontorealestate #torontolife #buyingahome #buyinghomes #buyingahome #homebuyingtips #homebuying101 #buildwealth #financialfreedom #feedspot  #leivillarre #leivillarrealestate #leivillarcisneros

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Episode Transcript

Lei (00:00):
You’ve probably been told to focus on getting the lowest
mortgage rate possible.
But what if I told you there’sa tiny checkbox in your mortgage
paperwork that, if selected,could save you more than
$100,000 in interest and mostCanadians don’t even know it
exists?
In today's episode, we’reunpacking a mortgage strategy

(00:20):
that requires no side hustle, norefinancing, 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 andbeyond in Toronto and the
Greater Toronto Area in Canada.
Welcome Home.

(00:47):
I'm your host, LeiVillar-Cisneros.
Before we get started, a bigshout out to Feedspot for
choosing us as one of the top 80podcasts 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 homehere in Canada.

(01:10):
According to Canada’s mortgagerules, you’d need: 5% down on
the first $500,000 that's$25,000 10% down on the
remaining $200,000 or $20,000That gives you a total minimum
down payment of $45,000.
Your mortgage?
Around $655,000, and once weadd in CMHC insurance, we’ll

(01:33):
round it to about $681,000.
Now let’s say your interestrate is 5.5% over 25 years
pretty average these days.
That gives you a monthlypayment of around $4,100.

But here’s the kicker (01:47):
over the life of the mortgage, you’d pay
$566,000 in interest alone.
So your $681,000 mortgage?
Actually ends up costing youover a million dollars when it’s
all said and done.
What if I told you that youcould cut that interest by over
$100,000 and shave 4 years offyour mortgage without spending a

(02:08):
penny more per month?
That’s where acceleratedbi-weekly payments come in.

Here’s how it works (02:13):
Instead of one monthly payment of $4,100,
You pay half of that ($2,050)every two weeks.
Now there are 52 weeks in ayear, which means 26
half-payments or 13 fullpayments per year.
So you’re sneaking in one extramortgage payment a year,
without even feeling it.
Using this strategy, you cutyour amortization from 25 years

(02:36):
to around 21 years.
And that massive interest billof $566,000?
Drops to around $468,000.
That’s a $100,000 savings justby changing your payment
frequency.
And the best part?
You don’t have to change yourbudget.
You just align your paymentswith your paycheque if you’re
paid bi-weekly.
So, why does this work?

(02:56):
In Canada, mortgage interest iscalculated on your outstanding
loan balance.
The faster you reduce thatbalance, the less interest gets
charged next time.
Each extra dollar toward yourprincipal snowballs: Less
interest means more of yourpayment goes to principal That
speeds up your mortgagereduction Which then reduces

(03:17):
even more interest It’s like acompounding effect but working
for you instead of your bank.
Now don’t confuse bi-weeklywith accelerated bi-weekly.
Regular bi-weekly just splitsyour annual payment into 26
installments.
No bonus there.
Accelerated bi-weekly takesyour monthly payment, splits it
in half, and makes 26 paymentsgiving you an extra full payment

(03:39):
every year.
Only accelerated gets you thatinterest savings.
So, who does this work for?
If you’re paid bi-weekly?
This is a perfect fit for yourcash flow.
If your lender allows freepayment frequency changes?
Even better.
And if you’re someone who wantsto save money without
overthinking it every month thisis the move.
And yes it works whether you’reon a fixed or variable rate.

Here’s the recap (04:02):
Same monthly cash out 4 years off your
mortgage About $100,000 ininterest saved No refinancing,
no magic just one smart switchIt’s one of the most overlooked
strategies in Canadian mortgageplanning.
So, if you’ve got a mortgage,or you’re about to sign one… Ask

your lender (04:19):
“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 giveyou a bonus tip or 2.
If you round up your mortgagepayment, say you're paying 640
or 635 biweekly, round it to$650 or 700 if you can afford

(04:44):
it.
You might be surprised how manymonths it will shave off of
your mortgage and saving tens ofthousands of dollars in the
process.
Now, for another bonus, if youhave extra money each month, or
whenever you have extra, if youadd $100 to each payment, you
wil save years from yourmortgage life.
When it comes to paying yourmortgage, every penny counts.

(05:07):
We're here to help you navigatereal estate with confidence,
clarity, and smart strategiesthat actually work for
Canadians.
If this episode helped you,share it with a friend, leave a
review, or follow the podcastfor more actionable advice but
if you'd rather watch it, checkus out on Youtube at
@LeiVillarRealEstate or read usat HomesByLei.com/blog.

(05:31):
Until next time stay smart,stay curious, and let’s talk
house.
You have been listening toLet's Talk House podcast.
Tune in for more on the nextepisode.
Follow us in Facebook, Youtubeor Instagram at @
LeiVillarRealEstate.