How much are monthly payments on a $500,000 mortgage?

At a 5% interest rate with 25-year amortization, monthly payments on a $500,000 mortgage are approximately $2,908. At 4%, payments drop to about $2,630. At 6%, they rise to roughly $3,199. Choose a shorter amortization or make lump-sum payments to reduce total interest.

How much total interest will I pay on a mortgage?

Total interest depends on your rate, amortization, and whether you make extra payments. On a $500,000 mortgage at 5% over 25 years, you would pay approximately $372,000 in total interest. A 30-year amortization increases that to roughly $466,000. Even a 0.5% lower rate saves tens of thousands over the life of the loan.

Is a 25-year or 30-year amortization better?

A 25-year amortization costs less in total interest and builds equity faster. A 30-year amortization has lower monthly payments, making it easier to qualify and freeing up cash flow. The right choice depends on your budget and financial goals.

How much does a 0.5% rate difference save on a mortgage?

On a $500,000 mortgage over 25 years, a 0.5% lower rate (4.5% vs 5%) saves approximately $47,000 in total interest and reduces your monthly payment by about $150. On a $700,000 mortgage, the same rate difference saves ~$66,000. This is why shopping for the best rate matters.

Why are some of these guides about buying and others about renewing?

The mortgage amount you are searching for usually tells us which situation applies. Larger amounts ($300,000 and up) most often reflect a new home purchase, since they roughly match current average home prices across Canadian markets. Smaller amounts ($100,000-$200,000) are increasingly a paid-down remaining balance from a much larger original mortgage, since that is where many mortgages land after 15-20 years of payments -- so those guides focus more on renewal and payoff decisions.

Mortgage Cost Guide Canada 2026 | Monthly Payments by Mortgage Amount

What will your mortgage cost?

Use the guides below to see detailed payment breakdowns for different mortgage amounts. Each page includes monthly payments at various interest rates, total interest over the life of the loan, 25-year vs 30-year amortization comparisons, and tips for reducing your mortgage costs.

Buying vs. renewing: which guide is for you?

Not everyone searching for a specific mortgage amount is buying a new home. Depending on where your number falls, you’re likely in one of two situations:

If your mortgage amount is…	You’re most likely…	Focus on
$300,000 or more	Buying a home at current market prices in most Canadian cities	The city price comparisons and affordability sections on each guide
$100,000-$200,000	Renewing or refinancing a balance paid down from a larger original mortgage	The renewal switch-or-stay math and payoff strategies on the $100K and $200K guides

How a mortgage balance shrinks to $100K-$200K over time

If you’re not sure which situation applies to you, this table shows roughly how long it takes a larger original mortgage to pay down to a smaller remaining balance, assuming a 5% rate, 25-year amortization, and only minimum payments (no extra prepayments):

Original Mortgage	Years to Reach ~$200,000 Remaining	Years to Reach ~$100,000 Remaining
$400,000	~13 years	~20 years
$500,000	~16-17 years	~22 years
$700,000	~19 years	~23 years

Extra payments, lump sums, or a shorter amortization all shrink these timelines considerably. If this describes your situation, your renewal decision (switch lenders or stay) usually matters more than the original purchase-market context – see the renewal math on the $100K and $200K guides.

Monthly payments by mortgage amount

Mortgage Amount	Monthly Payment (4%)*	Monthly Payment (5%)*	Monthly Payment (6%)*	Guide
$100,000	$526	$582	$640	View breakdown →
$200,000	$1,052	$1,163	$1,280	View breakdown →
$300,000	$1,578	$1,745	$1,919	View breakdown →
$400,000	$2,104	$2,326	$2,559	View breakdown →
$500,000	$2,630	$2,908	$3,199	View breakdown →
$600,000	$3,156	$3,490	$3,839	View breakdown →
$700,000	$3,682	$4,071	$4,479	View breakdown →
$800,000	$4,209	$4,653	$5,119	View breakdown →
$900,000	$4,735	$5,235	$5,758	View breakdown →
$1,000,000	$5,261	$5,816	$6,398	View breakdown →

*25-year amortization, monthly payments. Includes principal and interest only.

How mortgage costs work

Your mortgage cost is made up of two parts:

Principal — the amount you borrowed, which gets paid down over the amortization period
Interest — what the lender charges for lending you the money

In the early years of your mortgage, the majority of each payment goes toward interest. Over time, the balance shifts and more goes toward principal. This is called amortization.

25-year vs 30-year amortization comparison

Mortgage	25-Year Monthly	30-Year Monthly	Monthly Savings	Extra Interest (30-yr)
$300,000	$1,745	$1,602	$143	~$56,000
$500,000	$2,908	$2,670	$238	~$94,000
$700,000	$4,071	$3,738	$333	~$131,000
$1,000,000	$5,816	$5,340	$476	~$187,000

At 5% interest rate. Lower payments with 30-year amortization come at a significant total cost.

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Cost of Waiting to Buy a Home Calculator Guide: What Delaying Your Purchase Really Costs