Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
How much interest would I pay on an $850,000 mortgage?
Here's what your monthly payment and total interest could look like on a $850,000 mortgage.
If you’re ready to get on the property ladder or you’re looking to buy a second home, you’ll need to budget for your target home cost – and figure out how much mortgage you’re eligible for. If you’re looking to get a mortgage of $850,000, we’ve compiled information on what you might face monthly, with different interest rates and amortization periods, over the life of your mortgage.
Monthly payments on an $850,000 mortgage
At a 3.5% fixed interest rate, your monthly mortgage payment on a 25-year mortgage might total approximately $4,243.80 a month, while a 15-year mortgage might cost approximately $6,065.97 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.
Compare mortgages in Canada
1 - 4 of 4
Your total interest on an $850,000 mortgage
On a 25-year mortgage with a 3.5% fixed interest rate, you’ll pay approximately $423,139.35 in interest over the life of your mortgage. That’s almost half of what you borrowed in interest.
If you instead opt for a 15-year mortgage, you’ll pay approximately $241,874.03 in interest over the life of your mortgage — or just over half of the interest you’d pay on a 25-year mortgage.
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 $850,000 mortgage at a 3.5% fixed interest rate with our amortization schedule over 15- and 25- years.
At a 3.5% fixed-rate over 15-years, you’d pay approximately $6,065.97 monthly. Over the course of a year, that’s a total of $72,791.64 in mortgage payments. In the table below, compare how much you would pay toward both interest and the principal amount each year.
| Year | Total interest paid | Total principal paid | Remaining balance |
|---|---|---|---|
| 1 | $28,839.78 | $43,951.83 | $806,048.17 |
| 2 | $27,288.00 | $45,503.60 | $760,544.57 |
| 3 | $25,681.44 | $47,110.16 | $713,434.41 |
| 4 | $24,018.15 | $48,773.44 | $664,660.97 |
| 5 | $22,296.15 | $50,495.45 | $614,165.52 |
| 6 | $20,513.35 | $52,278.26 | $561,887.26 |
| 7 | $18,667.59 | $54,124.01 | $507,763.25 |
| 8 | $16,756.68 | $56,034.92 | $451,728.33 |
| 9 | $14,778.30 | $58,013.31 | $393,715.02 |
| 10 | $12,730.06 | $60,061.53 | $333,653.49 |
| 11 | $10,609.52 | $62,182.09 | $271,471.40 |
| 12 | $8.414.10 | $64,377.50 | $207,093.90 |
| 13 | $6,141.17 | $66,650.43 | $140,443.47 |
| 14 | $3,788.00 | $69,003.61 | $71,439.86 |
| 15 | $1,351.74 | $71,439.86 | $0.00 |
At a 3.5% fixed-rate over 25-years, you’d pay approximately $4,243.80 monthly. Over the course of a year, that’s a total of $50,925.60 in mortgage payments. In the table below, compare how much you would pay toward both interest and the principal amount each year.
| Year | Total interest paid | Total principal paid | Remaining balance |
|---|---|---|---|
| 1 | $29,191.40 | $21,734.18 | $828,265.82 |
| 2 | $28,424.04 | $22,501.53 | $805,764.29 |
| 3 | $27,629.60 | $23,295.97 | $782,468.32 |
| 4 | $26,807.10 | $24,118.47 | $758,349.85 |
| 5 | $25,955.58 | $24,970.00 | $733,379.85 |
| 6 | $25,073.97 | $25,851.60 | $707,528.25 |
| 7 | $24,161.25 | $26,764.32 | $680,763.93 |
| 8 | $23,216.31 | $27,709.27 | $653,054.66 |
| 9 | $22,237.99 | $28,687.58 | $624,367.08 |
| 10 | $21,225.15 | $29,700.43 | $594,666.65 |
| 11 | $20,176.53 | $30,749.04 | $563,917.61 |
| 12 | $19,090.90 | $31,834.68 | $532,082.93 |
| 13 | $17,966.94 | $32,958.64 | $499,124.29 |
| 14 | $16,803.29 | $34,122.28 | $65,002.01 |
| 15 | $15,598.56 | $35,327.01 | $429,675.00 |
| 16 | $14,351.29 | $36,574.28 | $393,100.72 |
| 17 | $13,060.00 | $37,865.58 | $355,235.14 |
| 18 | $11,723.10 | $39,202.47 | $316,032.67 |
| 19 | $10,339.01 | $40,586.56 | $275,446.11 |
| 20 | $8,906.06 | $42,019.52 | $233,426.59 |
| 21 | $7,422.50 | $43,503.07 | $189,923.52 |
| 22 | $5,886.57 | $45,039.01 | $144,884.51 |
| 23 | $4,296.41 | $46,629.16 | $98,255.35 |
| 24 | $2,650.11 | $48,275.46 | $49,979.89 |
| 25 | $945.69 | $49,979.89 | $0.00 |
Other mortgage amounts you might be interested in:
Bottom line
Before you take on a mortgage of $850,000, knowing how much you might pay each month is essential to budgeting and understanding how much mortgage you can actually afford. Before applying for a mortgage, compare lenders and rates and discuss amortization periods to find the best fit for your needs.
Learn more about how mortgages work in our comprehensive guide here.
More guides on Finder
-
Bad credit loans in Edmonton, Alberta
From personal and payday loans to lines of credit, compare loans for bad credit in Edmonton.
-
How to buy Sui (SUI) in Canada
This guide provides step-by-step instructions on how to buy Sui, lists some exchanges where you can get it and provides daily price data on (SUI).
-
How to buy Pepe (PEPE) in Canada
This guide provides step-by-step instructions on how to buy Pepe, lists some exchanges where you can get it and provides daily price data on (PEPE).
-
How to buy Arbitrum (ARB) in Canada
This guide provides step-by-step instructions on how to buy Arbitrum, lists some exchanges where you can get it and provides daily price data on (ARB).
-
How to buy SSV Network (SSV) in Canada
This guide provides step-by-step instructions on how to buy SSV Network, lists some exchanges where you can get it and provides daily price data on (SSV).
-
How to buy USDD (USDD) in Canada
This guide provides step-by-step instructions on how to buy USDD, lists some exchanges where you can get it and provides daily price data on (USDD).
-
How to buy Blur (BLUR) in Canada
This guide provides step-by-step instructions on how to buy Blur, lists some exchanges where you can get it and provides daily price data on (BLUR).
-
How to buy FLOKI Inu (FLOKI) in Canada
This guide provides step-by-step instructions on how to buy FLOKI Inu, lists some exchanges where you can get it and provides daily price data on (FLOKI).
-
How to buy Aptos (APT) in Canada
This guide provides step-by-step instructions on how to buy Aptos, lists some exchanges where you can get it and provides daily price data on (APT).
-
How to buy EthereumPoW (ETHW) in Canada
This guide provides step-by-step instructions on how to buy EthereumPoW, lists some exchanges where you can get it and provides daily price data on (ETHW).