If you’re ready to buy a home, you’ll need to figure out how much you can afford—even if your dream home costs one million dollars. In our guide below, we’ve broken down what a $1 million mortgage monthly payment in Canada would be and well as how much interest you might pay over the lifetime of that $1,000,000 mortgage.
Keep in mind that the following down payment rules apply in Canada:
If the purchase price of a property is less than $500,000, the minimum down payment is 5%.
If the purchase price is between $500,000 – $999,999, the minimum down payment is 5% on the first $500,000 and 10% on any amount over $500,000.
If the purchase price is $1,000,000 or more, the minimum down payment is 20%.
According to these rules, you’ll need to put down at least 20% on your million dollar home – which will save you from paying mortgage insurance.
Monthly payments on a $1,000,000 mortgage
At a 4% fixed interest rate, your monthly mortgage payment on a 25-year mortgage might total $5,260.20 a month, while a 15-year might cost $7,380.39 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 and possible other fees.
Interest
Mortgage term
Monthly payments
2.5%
15 years
$6,661.81
2.5%
25 years
$4,479.66
2.75%
15 years
$6,778.78
2.75%
25 years
$4,605.11
3.0%
15 years
$6,896.88
3.0%
25 years
$4,732.45
3.25%
15 years
$7,016.10
3.25%
25 years
$4,861.66
3.5%
15 years
$7,136.43
3.5%
25 years
$4,992.70
3.75%
15 years
$7,257.86
3.75%
25 years
$5,125.56
4.0%
15 years
$7,380.39
4.0%
25 years
$5,260.20
4.25%
15 years
$7,504.00
4.25%
25 years
$5,396.60
4.5%
15 years
$7,628.68
4.5%
25 years
$5,534.73
4.75%
15 years
$7,754.43
4.75%
25 years
$5,674.56
5.0%
15 years
$7,881.24
5.0%
25 years
$5,816.05
5.25%
15 years
$8,009.09
5.25%
25 years
$5,959.18
5.5%
15 years
$8,137.98
5.5%
25 years
$6,103.91
Compare mortgages in Canada
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Your total interest on a $1,000,000 mortgage
On a 25-year mortgage with a 4% fixed interest rate, you’ll pay $578,060.62 in interest over the life of your mortgage. That’s well over half of what you borrowed in interest.
If you instead opt for a 15-year mortgage, you’ll pay $328,469.71 in interest over the life of your mortgage — or almost half of the interest you’d pay on a 25-year mortgage.
Interest
Mortgage term
Total interest charged
2.5%
15 years
$199,125.94
2.5%
25 years
$343,898.69
2.75%
15 years
$220,181.14
2.75%
25 years
$381,534.37
3.0%
15 years
$241,439.12
3.0%
25 years
$419,736.50
3.25%
15 years
$262,898.45
3.25%
25 years
$458,497.89
3.5%
15 years
$284,557.68
3.5%
25 years
$497,811.00
3.75%
15 years
$306,415.29
3.75%
25 years
$537,667.96
4.0%
15 years
$328,469.71
4.0%
25 years
$578,060.62
4.25%
15 years
$350,719.36
4.25%
25 years
$618,980.49
4.5%
15 years
$373,162.56
4.5%
25 years
$660,418.86
4.75%
15 years
$395,797.64
4.75%
25 years
$702,366.75
5.0%
15 years
$418,622.85
5.0%
25 years
$744,814.96
5.25%
15 years
$441,636.43
5.25%
25 years
$787,754.05
5.5%
15 years
$464,836.55
5.5%
25 years
$831,174.45
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 $1,000,000 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 $7,380.39 monthly. Over the course of a year, that’s a total of $88,564.68 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
$38,771.80
$49,792.84
$950,207.16
2
$36,760.18
$51,804.48
$898,402.68
3
$34,667.27
$53,897.37
$844,505.31
4
$32,489.82
$56,074.83
$788,430.48
5
$30,224.40
$58,340.25
$730,090.23
6
$27,867.45
$60,697.20
$669.393.03
7
$25,415.28
$63,149.36
$606,243.67
8
$22,864.05
$65,700.60
$540,543.07
9
$20,209.74
$68,354.91
$472,188.16
10
$17,448.21
$71,116.44
$401,071.72
11
$14,575.10
$73,989.54
$327,082.18
12
$11,585.93
$76,978.73
$250,103.45
13
$8,475.98
$80,088.66
$170,014.79
14
$5,240.40
$83,324.24
$86,690.55
15
$1,874.10
$86,690.55
$0.00
At a 4% fixed-rate over 25-years, you’d pay approximately $5,260.20 monthly. Over the course of a year, that’s a total of $63,122.40 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
$39,239.54
$23,882.88
$976,117.12
2
$38,274.67
$24,847.76
$951,269.36
3
$37,270.83
$25,851.60
$925,417.76
4
$36,226.42
$26,896.00
$898,521.76
5
$35,139.82
$27,982.61
$870,539.15
6
$34,009.32
$29,113.10
$841,426.05
7
$32,833.15
$30,289.27
$811,136.78
8
$31,609.47
$31,512.96
$779,623.82
9
$30,336.34
$32,786.08
$746,837.74
10
$29,011.79
$34,110.64
$712,727.10
11
$27,633.71
$35,488.71
$677,238.39
12
$26,199.98
$36,922.45
$640,315.94
13
$24,708.30
$38,414.12
$601,901.82
14
$23,156.38
$39,966.05
$561,935.77
15
$21,541.74
$41,580.68
$520,355.09
16
$19,861.89
$43,260.54
$477,094.55
17
$18,114.16
$45,008.26
$432,086.29
18
$16,295.83
$46,826.60
$385,259.69
19
$14,404.03
$48,718.39
$336,541.30
20
$12,435.81
$50,686.61
$285,854.69
21
$10,388.07
$52,734.36
$233,120.33
22
$8,257.60
$54,864.82
$178,255.51
23
$6,041.07
$57,081.36
$121,174.15
24
$3,734.97
$59,387.45
$61,786.70
25
$1,335.73
$61,786.70
$0.00
Other mortgage amounts you might be interested in:
Buying a house is among the biggest investments you’ll make, and knowing how much you might pay each month on your $1,000,000 mortgage — including how much of your payment goes toward interest and how much goes toward the principal amount — is essential when it comes to budgeting and understanding how much house you can afford.
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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