If you’re ready to apply for a mortgage, you might wonder how the amortization period and interest rate you choose has an impact on the total cost of your mortgage. Here’s a breakdown of what your monthly payments might be, in interest and over the life of a $300,000 mortgage.
Monthly payments on a $300,000 mortgage
At a 4.5% fixed interest rate, your monthly mortgage payment on a 25-year mortgage might total approximately $1,667.50 a month, while a 10-year mortgage might cost approximately $3,109.15 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
Amortization Period
Monthly payments
1.5%
10 years
$2,693.74
1.5%
25 years
$1,199.81
1.75%
10 years
$2,726.94
1.75%
25 years
$1,235.37
2.0%
10 years
$2,760.40
2.0%
25 years
$1,271.56
2.25%
10 years
$2,794.12
2.25%
25 years
$1,308.39
2.5%
10 years
$2,828.10
2.5%
25 years
$1,345.85
2.75%
10 years
$2,862.33
2.75%
25 years
$1,383.93
3.0%
10 years
$2,896.82
3.0%
25 years
$1,422.63
3.25%
10 years
$2,931.57
3.25%
25 years
$1,461.95
3.5%
10 years
$2,966.58
3.5%
25 years
$1,501.87
3.75%
10 years
$3,001.84
3.75%
25 years
$1,542.39
4.0%
10 years
$3,037.35
4.0%
25 years
$1,583.51
4.25%
10 years
$3,073.13
4.25%
25 years
$1,625.21
4.5%
10 years
$3,109.15
4.5%
25 years
$1,667.50
Your total interest on a $300,000 mortgage
On a 25-year mortgage with a 4.5% fixed interest rate, you’ll pay approximately $200,249.23 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 mortgage, you’ll pay approximately $73,098.27in interest over the life of your mortgage — much less than half of the interest you’d pay on a 25-year mortgage.
Interest
Amortization Period
Total interest charged
1.5%
10 years
$23,249.40
1.5%
25 years
$59,942.69
1.75%
10 years
$27,233.37
1.75%
25 years
$70,610.20
2.0%
10 years
$31,248.43
2.0%
25 years
$81,468.90
2.25%
10 years
$35,294.54
2.25%
25 years
$92,517.63
2.5%
10 years
$39,371.65
2.5%
25 years
$103,755.06
2.75%
10 years
$43,479.71
2.75%
25 years
$115,179.77
3.0%
10 years
$47,618.68
3.0%
25 years
$126,790.18
3.25%
10 years
$51,788.50
3.25%
25 years
$138,584.60
3.5%
10 years
$55,989.12
3.5%
25 years
$150,561.21
3.75%
10 years
$60,220.48
3.75%
25 years
$162,718.08
4.0%
10 years
$64,482.50
4.0%
25 years
$175,053.16
4.25%
10 years
$68,775.12
4.25%
25 years
$187,564.29
4.5%
10 years
$73,098.27
4.5%
25 years
$200,249.23
Compare mortgages in Canada
1 - 2 of 2
Amortization schedule for a $300,000 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 $300,000 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 $2,896.82monthly. Over the course of a year, that’s a total of $34,761.84 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
$8,643
$26,119
$273,881
2
$7,848
$26,913
$246,967
3
$7,030
$27,732
$219,235
4
$6,186
$28,576
$190,660
5
$5,317
$29,445
$161,215
6
$4,422
$30,340
$130,875
7
$3,499
$31,263
$99,611
8
$2,548
$32,214
$67,397
9
$1,568
$33,194
$34,204
10
$558
$34,204
$0
At a 3% fixed-rate over 25-years, you’d pay approximately $1,422.63 monthly. Over the course of a year, that’s a total of $17071.56 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
$8,888
$8,184
$291,816
2
$8,639
$8,432
$283,384
3
$8,383
$8,689
$274,695
4
$8,118
$8,953
$265,742
5
$7,846
$9,226
$256,516
6
$7,565
$9,506
$247,010
7
$7,276
$9,795
$237,215
8
$6,978
$10,093
$227,122
9
$6,671
$10,400
$216,722
10
$6,355
$10,717
$206,005
11
$6,029
$11,042
$194,963
12
$5,693
$11,378
$183,584
13
$5,347
$11,724
$171,860
14
$4,991
$12,081
$159,779
15
$4,623
$12,448
$147,330
16
$4,244
$12,827
$134,503
17
$3,854
$13,217
$121,286
18
$3,452
$13,619
$107,667
19
$3,038
$14,034
$93,633
20
$2,611
$14,460
$79,173
21
$2,171
$14,900
$64,273
22
$1,718
$15,353
$48,919
23
$1,251
$15,820
$33,099
24
$770
$16,302
$16,797
25
$274
$16,797
$0
Other mortgage amounts you might be interested in:
Buying a house is among the biggest investments you’ll ever make. Knowing how much you might pay each month on your $300,000 mortgage — including how much of your payment goes toward your interest and how much goes to your principal amount — can be helpful when deciding on the right amortization period and interest rate.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.