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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.

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.

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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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