Compare mortgages with 10-year amortization

Build equity fast, but prepare for steep monthly payments.

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To help you pay off your mortgage fast, some mortgage providers offer a 10-year fixed term. If you can comfortably make the monthly payments, you stand to save thousands in interest.

How does a 10-year mortgage compare to a 30-year mortgage?

A 10-year mortgage offers you the chance to pay a lot less in interest over a short term in exchange for higher monthly payments than a 30-year mortgage.

While the interest paid on a 30-year mortgage can nearly equal the initial principal, you may pay only 25% of that initial principal as interest with a 10-year term.

A $500,000 mortgage at 4.59% interest

Mortgage termMonthly PaymentTotal interest paidSavings
10 years$5,193.19$123,182.80$293,852.40
30 years$2,547.32$417,035.20

While your monthly payments on a $500,000 mortgage with a 30-year term and a 4.59% APR are $2,547, the interest you’ll have paid by the end of the loan term totals $417,035.20 — or more than 80% of the original principal.

A 10-year mortgage will run you $123,182.80 in total interest, though the trade-off is monthly payments of $5,193. For further comparison, that’s roughly $67,000 less than interest you’ll pay on a 15-year mortgage.

Compared to a 30-year mortgage, you could save around $294,000 in interest on the same home with a 10-year mortgage.

How is mortgage interest calculated?

What are the benefits of a 10-year mortgage?

A 10-year mortgage offers big perks like:

  • Low interest rates. Most lenders that offer 10-year terms keep interest rates low, sometimes less than a 15-year rate.
  • Huge interest savings.The interest you’ll end up paying on a 10-year mortgage is much lower than that of a 30-year loan.
  • Quick equity build-up. With more of your payment going toward your principal, you’re building equity at a much faster rate than through a 15- or 30-year mortgage.

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What should I watch out for?

Though 10-year mortgage savings are substantial, watch for potential financial drawbacks:

  • High monthly payments. Monthly payments on a 10-year mortgage are high compared to 30-year mortgages, which can become a problem if you aren’t easily able to cover living expenses.
  • Less flexibility. High monthly payments could mean you have less money for investing elsewhere, which can be risky.
  • Limited purchasing power. You might not qualify for a more expensive home with a 10-year mortgage.

Is a 10-year mortgage right for me?

A 10-year mortgage isn’t for everyone. The monthly payments are demanding, and locking yourself into a 10-year mortgage could limit you from spending in other areas.

But if your income can support it, paying over a decade rather than 30 years can help you build equity and save thousands in interest.

ARM vs. fixed 10-year mortgage

Adjustable-rate mortgages (ARM) offer interest rates that can fluctuate over time based on the market. For example, a 5/1 ARM has a fixed interest rate for the first 5 years, and once that time is up, the rate can change annually.

If you plan on moving to another home within 10 years, a 10/1 ARM is likely the better financial choice to help you save on interest without the high monthly costs of a 10-year fixed payment. Otherwise, a 10-year fixed mortgage can help you pay off your home loan and own your house quickly.

How to compare mortgage rates

Which banks offer a 10-year mortgage?

All major banks in Canada offer 10-year mortgages, though many home owners opt for longer repayment periods to keep their monthly payments manageable.

Compare mortgage providers

Name Product Min. credit score Provincial availability Loans offered
Breezeful Mortgage
400+
AB, BC, MB, NB, NL, NS, NT, NU, ON, PE, QC, SK, YT
Fixed and variable rate
HELOCs
Second mortgages
Reverse mortgages
Rent to own
Breezeful is a 100% online mortgage broker that connects borrowers to competitive rate offers from over 30+ banks and mortgage lenders.
Homewise Mortgage
"A" lenders: 620+
"B" lenders: 450+
AB, BC, MB, NB, NL, NS, NT, NU, ON, PE, SK, YT
Fixed and variable rate mortgages
HELOCs
Second mortgages
Bridge mortgages
Homewise's personal advisors can get you mortgage rates from over 30 banks and lenders.
Loans Canada Mortgages
400
AB, BC, MB, NB, NL, NS, NT, NU, ON, PE, QC, SK, YT
Fixed and variable rate mortgages
Second Mortgages
Refinancing
HELOCs
Bridge Loans
Loans Canada connects borrowers with a mortgage broker in their area. Bad credit, EI and CERB applicants are considered.
Canadian Capital Mortgages
5% down: 650+
20% down: lower scores considered
Refinancing: Any score
ON
Fixed and variable rate mortgages
HELOCs
Second mortgages
Reverse mortgages
Commerical mortgages
Canadian Capital Mortgages work with over 45 lenders in Canada to find you the best rate you're eligible for.
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Bottom line

If you can afford the monthly payments of a 10-year mortgage — and you can find a bank that offers them — you can save a lot in interest compared to a traditional 30-year term. But those high monthly payments can be prohibitive for those with unstable finances, making a longer-term mortgage a safer, more flexible, more reliable choice.

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