Ready to buy a home? If you only need a $100,000 mortgage, you could potentially save on monthly interest payments and pay off your mortgage faster by utilizing a shorter amortization period.
Here’s a breakdown of what your $100,000 mortgage monthly payment might cost, as well as what you’ll pay in interest and over its lifetime.
Monthly payments on a $100,000 mortgage
At a 4.5% fixed interest rate, your monthly mortgage payment on a 25-year mortgage might total approximately $555.83 a month. Your payments on a 10-year mortgage might cost around $1,036.38 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 $100,000 mortgage
On a 25-year mortgage with a 4.5% fixed interest rate, you’ll pay approximately$66,749.74 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 amortization period, you’ll pay approximately $24,366 in interest over the life of your mortgage — less than half of the interest you’d pay on a 25-year mortgage.
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Amortization schedule for a $100,000 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 $100,000 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 $965.61 monthly. Over the course of a year, that’s a total of $11,587.32 in mortgage payments. In the table below, compare how much you would pay toward both interest and the principal amount each year.
| 1 | $2,881 | $8,706 | $91,294 |
| 2 | $2,616 | $8,971 | $82,322 |
| 3 | $2,343 | $9,244 | $73,078 |
| 4 | $2,062 | $9,525 | $63,553 |
| 5 | $1,772 | $9,815 | $53,738 |
| 6 | $1,474 | $10,113 | $43,625 |
| 7 | $1,166 | $10,421 | $33,204 |
| 8 | $849 | $10,738 | $22,466 |
| 9 | $523 | $11,065 | $11,401 |
| 10 | $186 | $11,401 | $0 |
At a 3% fixed-rate over 25-years, you’d pay approximately $474.21 monthly. Over the course of a year, that’s a total of $5690.52 in mortgage payments. In the table below, compare how much you would pay toward both interest and the principal amount each year.
| 1 | $2,963 | $2,728 | $97,272 |
| 2 | $2,880 | $2,811 | $94,461 |
| 3 | $2,794 | $2,896 | $91,565 |
| 4 | $2,706 | $2,984 | $88,581 |
| 5 | $2,615 | $3,075 | $85,505 |
| 6 | $2,522 | $3,169 | $82,337 |
| 7 | $2,425 | $3,265 | $79,072 |
| 8 | $2,326 | $3,364 | $75,707 |
| 9 | $2,224 | $3,467 | $72,241 |
| 10 | $2,118 | $3,572 | $68,668 |
| 11 | $2,010 | $3,681 | $64,988 |
| 12 | $1,898 | $3,793 | $61,195 |
| 13 | $1,782 | $3,908 | $57,287 |
| 14 | $1,664 | $4,027 | $53,260 |
| 15 | $1,541 | $4,149 | $49,110 |
| 16 | $1,415 | $4,276 | $44,834 |
| 17 | $1,285 | $4,406 | $40,429 |
| 18 | $1,151 | $4,540 | $35,889 |
| 19 | $1,013 | $4,678 | $31,211 |
| 20 | $870 | $4,820 | $26,391 |
| 21 | $724 | $4,967 | $21,424 |
| 22 | $573 | $5,118 | $16,306 |
| 23 | $417 | $5,273 | $11,033 |
| 24 | $257 | $5,434 | $5,599 |
| 25 | $91 | $5,599 | $0.00 |
Will I need a down payment for my new home?
Yes, you’ll need to provide a down payment of 5-20% for your home. Providing a down payment of less than 20% requires that you insure your mortgage with CMHC insurance. This is an extra expense on top of any fees and interest you’ll pay. If you have an insured mortgage, the longest amortization period you can choose is 25- years.
Additional fees to consider
Buying a home is an investment. Along with the down payment and mortgage insurance (if applicable), you’ll need to pay a range of closing costs, fees and taxes. These vary between lenders and property types, but they can add up to thousands of dollars. Be sure to factor these into your budget. If you’re a first-time home buyer, you may be able to receive tax credits or rebates.
Costs may include:
For buyers
- Legal and notary fees
- Home inspection fees
- Property appraisal
- Disbursements
- Any adjustment costs
- Miscellaneous condo or association fees
- Mortgage fees
- Mortgage insurance — if down payment is less than 20%
- Land transfer tax
- Property tax
- Homeowners insurance
For sellers
- Mortgage payoff
- Miscellaneous condo or association fees
Other mortgage amounts you might be interested in:
Bottom line
A $100,000 mortgage comes with monthly repayments. When you find a property you like, make sure you can afford it by taking the down payment, mortgage insurance (if applicable) and monthly repayments into account, as well as your salary and job stability, among other factors.
Learn more about how home loans work in our comprehensive guide to mortgages.
