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How much will a $200,000 mortgage cost?

A breakdown of mortgage costs, including repayments, total interest and amortization, so that you can borrow with confidence.

If you’re ready to apply for a mortgage, you might wonder how to budget for your target home cost. Your mortgage size will depend on the price of the home you are buying and the downpayment you are contributing. If you are buying a $300,000 home and contributing $100,000 in a downpayment, you will need a $200,000 mortgage to make up the difference.

Here’s a breakdown of what your $200,000 mortgage monthly payment might cost, as well as what you’ll pay in interest and over its lifetime.

Monthly payments on a $200,000 mortgage

What is each mortgage payment made up of?

  • Principal payment. This goes towards the amount you borrowed from the lender (in this case, a total of $200,000). As you gradually pay off the amount you borrowed, you will be paying interest on a smaller loan amount, so your interest payments will slowly reduce.
  • Interest payment. This is the cost to borrow from the lender. The higher your principal and the higher your interest rate, the more interest you’ll need to repay.
At a 4.5% fixed interest rate, your monthly mortgage payment on a 25-year mortgage might total $1,111.66 a month, while a 10-year mortgage might cost $2,072.77 a month.

Your total interest on a $200,000 mortgage

On a mortgage with a 25-year amortization and a 4.5% fixed interest rate, you’ll pay $133,499.49 in interest over the life of your loan.

If you instead opt for a mortgage with a 10-year amortization, you’ll pay $48,732.18 in interest over the life of your loan — or less than half of the interest you’d pay on a 25-year mortgage.

Compare lenders for $200,000 mortgages in Canada

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Name Product Interest Rate (APR) Loan Term Min. credit score Provincial availability
Homewise Mortgages
Varies
Varies
600 (recommended)
AB, BC, MB, NB, NL, NS, ON, SK
Homewise's personal advisors can get you mortgage rates from over 30 banks and lenders.
BMO Mortgages
7.06%
5 Year Fixed Rate
600
All of Canada
Get up to $4,000 cash back with a new BMO fixed or variable rate closed term mortgage or Homeowner ReadiLine. Ends June 30, 2024.
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Amortization schedule for a $200,000 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.

You can estimate your monthly loan repayments on a $200,000 mortgage at 3% fixed interest with our amortization schedule over 10 and 25 years.

YearTotal interest paidTotal principal paidRemaining balance
1$5,762$17,413$182,587
2$5,232$17,942$164,645
3$4,687$18,488$146,157
4$4,124$19,050$127,106
5$3,545$19,630$107,477
6$2,948$20,227$87,250
7$2,332$20,842$66,408
8$1,699$21,476$44,932
9$1,045$22,129$22,802
10$372$22,802$0
YearTotal interest paidTotal principal paidRemaining balance
1$5,925$5,456$194,544
2$5,759$5,622$188,923
3$5,588$5,793$183,130
4$5,412$5,969$177,161
5$5,231$6,150$171,011
6$5,044$6,337$164,674
7$4,851$6,530$158,143
8$4,652$6,729$151,415
9$4,448$6,933$144,481
10$4,237$7,144$137,337
11$4,019$7,362$129,975
12$3,796$7,586$122,390
13$3,565$7,816$114,573
14$3,327$8,054$106,519
15$3,082$8,299$98,220
16$2,830$8,551$89,669
17$2,570$8,812$80,857
18$2,302$9,080$71,778
19$2,025$9,356$62,422
20$1,741$9,640$52,782
21$1,448$9,933$42,848
22$1,145$10,236$32,613
23$834$10,547$22,066
24$513$10,868$11,198
25$183$11,198$0

Other mortgage amounts you might be interested in:

Bottom line

Buying a house is among the biggest investments you’ll make. Know how much you might pay each month on your $200,000 mortgage — including how much of your payment goes toward your interest over the principal — when shopping for a lender.

Learn more about how home loans work in our comprehensive guide to mortgages.

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