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How much will a $200,000 mortgage cost you?

A breakdown of mortgage costs, including repayments, total interest and amortization, so that you can borrow with confidence.

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If you’re ready to apply for a mortgage, you might wonder how to budget for your target home cost. Your mortgage size will depend on the price of the home you are buying and the downpayment you are contributing. If you are buying a $300,000 home and contributing $100,000 in a downpayment, you will need a $200,000 mortgage to make up the difference.

Here’s a breakdown of what your $200,000 mortgage might cost you in interest, monthly and over its lifetime.

Monthly payments on a $200,000 mortgage

What is each mortgage payment made up of?

  • Principal payment. This goes towards the amount you borrowed from the lender (in this case, a total of $200,000). As you gradually pay off the amount you borrowed, you will be paying interest on a smaller loan amount, so your interest payments will slowly reduce.
  • Interest payment. This is the cost to borrow from the lender. The higher your principal and the higher your interest rate, the more interest you’ll need to repay.
At a 3% fixed interest rate, your monthly mortgage payment on a 25-year mortgage might total $948.42 a month, while a 10-year mortgage might cost $1,931.21 a month.

Monthly payments by interest rate

InterestAmortization periodMonthly payments
1.5%10 years$1,795.83
1.5%25 years$799.87
1.75%10 years$1,817.96
1.75%25 years$823.58
2%10 years$1,840.27
2%25 years$847.71
2.25%10 years$1,862.75
2.25%25 years$872.26
2.50%10 years$1,885.40
2.50%25 years$897.23
2.75%10 years$1,908.22
2.75%25 years$922.62
3%10 years$1,931.21
3%25 years$948.42
3.25%10 years$1,954.38
3.25%25 years$974.63
3.50%10 years$1,977.72
3.50%25 years$1,001.25
3.75%10 years$2,001.22
3.75%25 years$1,028.26
4%10 years$2,024.90
4%25 years$1,055.67
4.25%10 years$2,048.75
4.25%25 years$1,083.48
4.5%10 years$2,072.77
4.5%25 years$1,111.66

Note that your monthly mortgage payments will vary depending on your interest rate, taxes and private mortgage insurance (PMI), among related fees.

Your total interest on a $200,000 mortgage

On a mortgage with a 25-year amortization and a 3% fixed interest rate, you’ll pay $84,526.79 in interest over the life of your loan.

If you instead opt for a mortgage with a 10-year amortization, you’ll pay $31,745.79 in interest over the life of your loan — or less than half of the interest you’d pay on a 25-year mortgage.

Amortization schedule for a $200,000 mortgage

What is amortization?

Your amortization period is the total number of years you have to pay off your mortgage.

When you take out a mortgage, you agree to pay the principal and interest over the life of the loan. Your interest rate is applied to your balance, and as you pay down your balance, the amount you pay in interest changes.

This means that at the beginning of your loan, a big percentage of your payment is applied to interest. With each subsequent payment, you pay more toward your balance.

You can estimate your monthly loan repayments on a $200,000 mortgage at 3% fixed interest with our amortization schedule over 10 and 25 years.

YearTotal interest paidTotal principal paidRemaining balance
1$5,762$17,413$182,587
2$5,232$17,942$164,645
3$4,687$18,488$146,157
4$4,124$19,050$127,106
5$3,545$19,630$107,477
6$2,948$20,227$87,250
7$2,332$20,842$66,408
8$1,699$21,476$44,932
9$1,045$22,129$22,802
10$372$22,802$0
YearTotal interest paidTotal principal paidRemaining balance
1$5,925$5,456$194,544
2$5,759$5,622$188,923
3$5,588$5,793$183,130
4$5,412$5,969$177,161
5$5,231$6,150$171,011
6$5,044$6,337$164,674
7$4,851$6,530$158,143
8$4,652$6,729$151,415
9$4,448$6,933$144,481
10$4,237$7,144$137,337
11$4,019$7,362$129,975
12$3,796$7,586$122,390
13$3,565$7,816$114,573
14$3,327$8,054$106,519
15$3,082$8,299$98,220
16$2,830$8,551$89,669
17$2,570$8,812$80,857
18$2,302$9,080$71,778
19$2,025$9,356$62,422
20$1,741$9,640$52,782
21$1,448$9,933$42,848
22$1,145$10,236$32,613
23$834$10,547$22,066
24$513$10,868$11,198
25$183$11,198$0

Compare mortgage lenders in Canada

Name Product Interest Rate (APR) Loan Term Min. credit score Provincial availability
Tangerine Mortgages
2.14%
5 Year Fixed Rate
620
All of Canada
Get competitive rates and make annual lump sum prepayments up to 25% of your original mortgage amount with a Tangerine mortgage.
Breezeful Mortgages
1.74%
5 Year Fixed Rate
600
All of Canada
Breezeful is a 100% online mortgage broker that connects borrowers to competitive rate offers from over 30+ banks and mortgage lenders.
Homewise Mortgages
Varies
Varies
600
Not available in Quebec
Homewise's personal advisors can get you mortgage rates from over 30 banks and lenders.
intelliMortgage Mortgages
1.42%
5 Year Fixed Rate
680
AB, BC, NL, ON, PE
intelliMortgage is an online mortgage broker that works with over 100+ banks and mortgage lenders across Canada.
Loans Canada Mortgages
1.79%
5 Year Fixed Rate
400
All of Canada
Loans Canada connects borrowers with a mortgage broker in their area. Bad credit, EI and CERB applicants are considered.
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Compare up to 4 providers

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Bottom line

Buying a house is among the biggest investments you’ll make. Know how much you might pay each month on your $200,000 mortgage — including how much of your payment goes toward your interest over the principal — when shopping for a lender.

Learn more about how home loans work in our comprehensive guide to mortgages.


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