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.
Interest
Mortgage term
Monthly payments
2.5%
15 years
$5,662.54
2.5%
25 years
$3,807.71
2.75%
15 years
$5,761.97
2.75%
25 years
$3,914.35
3.0%
15 years
$5,862.35
3.0%
25 years
$4,022.59
3.25%
15 years
$5,963.69
3.25%
25 years
$4,132.41
3.5%
15 years
$6,065.97
3.5%
25 years
$4,243.80
3.75%
15 years
$6,169.18
3.75%
25 years
$4,356.73
4.0%
15 years
$6,273.33
4.0%
25 years
$4,471.17
4.25%
15 years
$6,378.40
4.25%
25 years
$4,587.11
4.5%
15 years
$6,484.38
4.5%
25 years
$4,704.52
4.75%
15 years
$6,591.27
4.75%
25 years
$4,823.37
5.0%
15 years
$6,699.05
5.0%
25 years
$4,943.64
5.25%
15 years
$6,807.73
5.25%
25 years
$5,065.30
5.5%
15 years
$6,917.28
5.5%
25 years
$5,188.33
Compare mortgages in Canada
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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.
Interest
Mortgage term
Total interest charged
2.5%
15 years
$169,257.05
2.5%
25 years
$292,313.89
2.75%
15 years
$187,153.97
2.75%
25 years
$324,304.31
3.0%
15 years
$205,223.25
3.0%
25 years
$356,776.02
3.25%
15 years
$223,463.68
3.25%
25 years
$389,723.20
3.5%
15 years
$241,874.03
3.5%
25 years
$423,139.35
3.75%
15 years
$260,452.99
3.75%
25 years
$457,017.77
4.0%
15 years
$279,199.26
4.0%
25 years
$491,351.52
4.25%
15 years
$298,111.45
4.25%
25 years
$526,133.42
4.5%
15 years
$317,188.18
4.5%
25 years
$561,356.03
4.75%
15 years
$336,427.99
4.75%
25 years
$597,011.74
5.0%
15 years
$355,829.42
5.0%
25 years
$633,092.71
5.25%
15 years
$375,390.96
5.25%
25 years
$669,590.95
5.5%
15 years
$395,111.07
5.5%
25 years
$706,498.28
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 $50,925.60in 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:
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.
Emma Balmforth is a producer at Finder. She is passionate about helping people make financial decisions that will benefit them now and in the future. She has written for a variety of publications including World Nomads, Trek Effect and Uncharted. Emma has a degree in Business and Psychology from the University of Waterloo. She enjoys backpacking, reading and taking long hikes and road trips with her adventurous dog.
Larger living space and a garage still top the list of most desirable features, but Canada’s housing market trends continue to shift. Here’s what buyers want in 2023.
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