BMO Bank of Montreal

BMO Bank of Montreal

November 07, 2011 09:00 ET

Financial Literacy Month-BMO's Tip of the Day: Switch to Weekly Mortgage Payments to Save Interest and Become Debt-Free Faster

TORONTO, ONTARIO--(Marketwire - Nov. 7, 2011) - To mark Financial Literacy Month, which was launched by Finance Minister Jim Flaherty, BMO Bank of Montreal is releasing a series of financial tips throughout November. As part of Making Money Make Sense and BMO SmartSteps, the tips are designed to help individuals and families save and manage their day to day finances more effectively.

BMO's Tip of the Day: Switch from monthly to weekly mortgage payments to become mortgage-free faster and save on interest costs.

  • For example, switching from monthly payments to accelerated weekly payments will save you upwards of $48,000 in interest over the life of your mortgage (based on a $200,000, 5-year fixed term mortgage at an interest rate of 7 per cent over 25 years).

"Switching from monthly to weekly payments can take years off your mortgage and help you become debt-free sooner," said Katie Archdekin, Head of Mortgage Products, BMO Bank of Montreal. "With more frequent and accelerated payments, you may pay a little more each month, but you'll pay your mortgage down faster, saving you interest costs over the long term."

BMO Financial Literacy Month Tips

November 1: Pay more than the minimum payment on a credit card balance.

November 2: Choose a shorter amortization for your mortgage.

November 3: Contribute to a child's Registered Education Savings Plan (RESP) as early as possible.

November 4: Invest in a Tax-Free Savings Account (TFSA) to grow your savings faster by reducing the taxes you pay.

For more on financial literacy, BMO encourages Canadians to visit and

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