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How much interest would I pay on a $300,000 mortgage?

The cost of a $300,000 mortgage, 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 the amortization period and interest rate you choose has an impact on the total cost of your mortgage. Here’s a breakdown of what your monthly payments might be, in interest and over the life of a $300,000 mortgage.

Monthly payments on a $300,000 mortgage

At a 3% fixed interest rate, your monthly mortgage payment on a 25-year mortgage might total approximately $1,422.63 a month, while a 10-year mortgage might cost approximately $2,896.82 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 $300,000 mortgage

On a 25-year mortgage with a 3% fixed interest rate, you’ll pay approximately $126,790.18 in interest over the life of your mortgage. That’s almost half of what you borrowed originally.

If you instead opt for a 10-year mortgage, you’ll pay approximately $47,618.68 in interest over the life of your mortgage — less than half of the interest you’d pay on a 25-year mortgage.

Amortization schedule for a $300,000 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.

Below, you can estimate your monthly mortgage repayments on a $300,000 mortgage at a 3% fixed interest rate with our amortization schedule over 10- and 25- years.

At a 3% fixed-rate over 10-years, you’d pay approximately $2,896.82 monthly. Over the course of a year, that’s a total of $34,761.84 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 paidRemaining balance
1$8,643$26,119$273,881
2$7,848$26,913$246,967
3$7,030$27,732$219,235
4$6,186$28,576$190,660
5$5,317$29,445$161,215
6$4,422$30,340$130,875
7$3,499$31,263$99,611
8$2,548$32,214$67,397
9$1,568$33,194$34,204
10$558$34,204$0

At a 3% fixed-rate over 25-years, you’d pay approximately $1,422.63 monthly. Over the course of a year, that’s a total of $17071.56 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 paidRemaining balance
1$8,888$8,184$291,816
2$8,639$8,432$283,384
3$8,383$8,689$274,695
4$8,118$8,953$265,742
5$7,846$9,226$256,516
6$7,565$9,506$247,010
7$7,276$9,795$237,215
8$6,978$10,093$227,122
9$6,671$10,400$216,722
10$6,355$10,717$206,005
11$6,029$11,042$194,963
12$5,693$11,378$183,584
13$5,347$11,724$171,860
14$4,991$12,081$159,779
15$4,623$12,448$147,330
16$4,244$12,827$134,503
17$3,854$13,217$121,286
18$3,452$13,619$107,667
19$3,038$14,034$93,633
20$2,611$14,460$79,173
21$2,171$14,900$64,273
22$1,718$15,353$48,919
23$1,251$15,820$33,099
24$770$16,302$16,797
25$274$16,797$0

Compare mortgages in Canada

Name Product Interest Rate (APR) Loan Term Min. credit score Provincial availability
Homewise Mortgages
Varies
Varies
600
Not available in Quebec
Homewise's personal advisors can get you mortgage rates from over 30 banks and lenders.
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.
Breezeful Mortgages
1.64%
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600
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Breezeful is a 100% online mortgage broker that connects borrowers to competitive rate offers from over 30+ banks and mortgage lenders.
intelliMortgage Mortgages
1.42%
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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
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Loans Canada connects borrowers with a mortgage broker in their area. Bad credit, EI and CERB applicants are considered.
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Bottom line

Buying a house is among the biggest investments you’ll ever make. Knowing how much you might pay each month on your $300,000 mortgage — including how much of your payment goes toward your interest and how much goes to your principal amount — can be helpful when deciding on the right amortization period and interest rate.

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

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