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How much interest would I pay on a million dollar mortgage?

Here's what your monthly payment and total interest could be on a $1,000,000 mortgage.

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If you’re ready to buy a home, you’ll need to figure out how much you can afford. If your dream home costs one million dollars, we’ve broken down what you might face in monthly repayments, as well as how much interest you might pay over the life of the 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.

Compare mortgages in Canada

Name Product Interest Rate (APR) Loan Term Min. credit score Provincial availability
Tangerine Mortgages
2.14%
5 Year Fixed Rate
620
All of Canada
Get competitive rates and make annual lump sum prepayments up to 25% of your original mortgage amount with a Tangerine mortgage.
Meridian Mortgages
2.29%
5 Year Fixed Closed Rate
600
ON
Meridian is a credit union that provides Ontario residents featured rates and the option to defer one payment every 12 months without penalty.
Homewise Mortgages
Varies
Varies
600
Not available in Quebec
Homewise's personal advisors can get you mortgage rates from over 30 banks and lenders.
Loans Canada Mortgages
1.79%
5 Year Fixed Rate
400
All of Canada
Loans Canada connects borrowers with a mortgage broker in their area. Bad credit, EI and CERB applicants are considered.
intelliMortgage Mortgages
1.42%
5 Year Fixed Rate
680
AB, BC, NL, ON, PE
intelliMortgage is an online mortgage broker that works with over 100+ banks and mortgage lenders across Canada.
Breezeful Mortgages
1.74%
5 Year Fixed Rate
600
All of Canada
Breezeful is a 100% online mortgage broker that connects borrowers to competitive rate offers from over 30+ banks and mortgage lenders.
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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.

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.

YearTotal interest paidTotal principal paidRemaining 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.

YearTotal interest paidTotal principal paidRemaining 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:

Bottom line

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.

Learn more about how mortgages work in our comprehensive guide.

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