Question 1

Is the mortgage rate higher with a 20% down payment?

Accepted Answer

Yes, mortgage rates are often slightly higher with a 20% down payment, but it’s not as bad as it sounds—and in many cases, it can still save you money overall.

When you put less than 20% down, the mortgage is considered insured, meaning you must pay mortgage default insurance. This insurance reduces the lender’s risk, which is why insured mortgages often qualify for lower advertised interest rates. However, that insurance premium isn’t free—it’s added to your mortgage and increases your total borrowing cost.

With a 20% down payment, your mortgage is uninsured, which may come with a slightly higher rate, but you avoid paying mortgage default insurance altogether. Over time, many buyers with 20% down end up paying less in total interest and fees.

It’s also important to be cautious with online mortgage rate advertisements, as they usually apply to insured mortgages with less than 20% down and may not reflect the best option for your situation.

As a mortgage broker, I compare both insured and uninsured mortgage options to help determine which choice makes the most financial sense for you.

I’m always happy to walk through the numbers—please don’t hesitate to reach out. Nikole

Question 2

Does the lender charge more interest at the beginning of my mortgage?

Accepted Answer

Yes—but not because the lender is taking more from you. It happens because of how mortgage payments work.
💡 Why Does More of My Payment Go to Interest at First?
 • Your mortgage payment is based on your current balance, interest rate, and amortization period.
 • At the start of your mortgage, your balance is at its highest—so interest makes up a bigger portion of the payment.
 • With every payment you make, your balance shrinks—so the next payment has slightly less interest and more principal going toward your home.
The good news?
📉 Over time, more of your payment goes toward principal, building your equity faster!
🚀 Tip: If you can make extra payments (even small ones), you can reduce your balance faster and pay less interest overall.
I’m always happy to answer any questions—please don’t hesitate to reach out. Nikole

Question 3

Which is better: Accelerated weekly or biweekly payments?

Accepted Answer

🔹Short answer: Accelerated weekly payments are slightly better—but the difference is minimal.

Both accelerated weekly and accelerated biweekly mortgage payments help you pay off your mortgage faster by making the equivalent of one extra monthly payment per year. This reduces your amortization and lowers the total interest you pay over time.

For example, on a $300,000 mortgage with a 25-year amortization at a 1.7% interest rate, the difference in interest savings over five years between accelerated weekly and accelerated biweekly payments is only about $14.
The reason accelerated weekly payments save slightly more interest is simple: payments are made more frequently, which reduces the outstanding mortgage balance a bit faster and lowers interest costs marginally.

In most cases, the best payment option is the one that fits your cash flow and budgeting style. As a mortgage broker, I help clients compare payment frequencies and choose the option that aligns with their financial goals—not just the one that looks best on paper.

I’m always happy to review your payment options—please don’t hesitate to reach out. Nikole

Question 4

What is the difference between a fixed or variable mortgage?

Accepted Answer

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Alberta Mortgage Services

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How do I choose the best term and product for me?

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2) Mortgage Product

3) Interest Rate

Is the mortgage rate higher with a 20% down payment?

Does the lender charge more interest at the beginning of my mortgage?

Which is better: Accelerated weekly or biweekly payments?

What is the difference between a fixed or variable mortgage?

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