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How much interest would I pay on a $250,000 mortgage?

Take a look at how your monthly repayment amount and total interest can change based on the amortization period.

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If you’re ready to buy a home, you might wonder how much you’ll need to budget each month to cover the mortgage payments for your dream home. Here’s a breakdown of what you might pay monthly, in interest and over the life of a $250,000 mortgage.

Monthly payments on a $250,000 mortgage

At a 4% fixed interest rate, your monthly mortgage payment on a 25-year mortgage might total $1,315.05 a month, while a 15-year might cost $1,845.10 a month.

Note that your monthly mortgage payments may differ slightly depending on the type of interest rate (fixed, variable, etc.), your mortgage term, payment frequency, taxes (such as CMHC insurance) and possible other fees.

Your total interest on a $250,000 mortgage

On a 25-year mortgage with a 4% fixed interest rate, you’ll pay approximately $144,515 in interest over the life of your mortgage. That’s about two-thirds of what you borrowed in interest.

If you instead opt for a 15-year mortgage, you’ll pay approximately $82,117 in interest over the life of your mortgage — or about 57% of the interest you’d pay on a 25-year mortgage.

Compare mortgage lenders in Canada

Name Product Interest Rate (APR) Loan Term Min. credit score Provincial availability
Tangerine Mortgages
2.14%
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620
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Get competitive rates and make annual lump sum prepayments up to 25% of your original mortgage amount with a Tangerine mortgage.
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2.29%
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600
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Meridian is a credit union that provides Ontario residents featured rates and the option to defer one payment every 12 months without penalty.
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Varies
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1.79%
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1.42%
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intelliMortgage is an online mortgage broker that works with over 100+ banks and mortgage lenders across Canada.
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Amortization schedule

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

When you sign on for a mortgage, you agree to pay the principal amount and the interest over the life of the mortgage. Your interest rate is applied to your principal amount, and as you pay down your principal amount, the amount you pay in interest changes. Amortization means that at the beginning of your mortgage, a big percentage of your payment is applied to interest. With each subsequent payment, you pay more toward your principal amount and less toward interest.

Below, you can estimate your monthly mortgage repayments on a $250,000 mortgage at a 4% fixed interest rate with our amortization schedule over 15- and 25- years.

At a 4% fixed-rate over 15-years, you’d pay approximately $1,845.10 monthly. Over the course of a year, that’s a total of $22,141.20 in mortgage payments. In the table below, compare how much you would pay toward both interest and the principal amount each year.

YearTotal interest paidTotal principal paidEnding balance
1$9,692.95$12,448.21$237,551.79
2$9,190.04$12,951.12$224,600.75
3$8,666.82$13,474.34$211,126.33
4$8,122.46$14,018.71$197,107.62
5$7,556.10$14,585.06$182,522.56
6$6,966.86$15,174.30$167,348.26
7$6,353.82$15,787.34$151,560.92
8$5,716.01$16,425.15$135,135.77
9$5,052.44$17,088.73$118,047.04
10$4,362.05$17,779.11$100,267.93
11$3,643.78$18,497.39$81,770.54
12$2,896.48$19,244.68$62,525.86
13$2,118.99$20,022.16$42,503.70
14$1,310.10$20,831.06$21,672.64
15$468.53$21,672.64$0.00

At a 4% fixed-rate over 25-years, you’d pay approximately $1,315.05 monthly. Over the course of a year, that’s a total of $15,780.60 in mortgage payments. In the table below, compare how much you would pay toward both interest and the principal amount each year.

YearTotal interest paidTotal principal paidEnding balance
1$9,809.89$5,970.72$244,029.28
2$9,568.66$6,211.94$217,817.34
3$ 9,317.71$6,462.90$231,354.44
4$ 9,056.60$6,724.00$224,630.44
5$ 8,784.96$6,995.65$217,634.79
6$8,502.33$7,278.28$210,356.51
7$8,208.29$7,572.32$202,784.19
8$7,902.36$7,878.23$194,905.96
9$7,584.09$8,196.52$186,709.44
10$ 7,252.95$8,527.66$178,181.78
11$6,908.43$8,872.18$169,309.60
12$6,549.99$9,230.61$160,078.99
13$6,177.08$9,603.53$150,475.46
14$5,789.09$9,991.52$140,483.94
15$5,385.44$10,395.17$130,088.77
16$4,965.47$ 10,815.13$119,273.64
17$4,528.54$11,252.07$108,021.57
18$4,073.95$11,706.65$96,314.92
19$3,601.01$12,179.59$84,135.33
20$3,108.95$ 12,671.66$71,463.67
21$2,597.02$13,183.59$58,280.08
22$2,064.40$13,716.20$44,563.88
23$1,510.27$14,270.34$30,293.54
24$933.74$14,846.86$15,446.68
25$333.93$$15,446.68$0.00

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