How much does a $1,000,000 mortgage cost?
A $1,000,000 mortgage is the top tier of Canadian borrowing. This is exclusively uninsured territory — meaning 20%+ down on a home worth at least $1.25 million. At this level, every fraction of a percentage point on your rate is worth tens of thousands of dollars. Here’s the full picture.
Monthly payments at every rate
| Interest Rate | 25-Year Monthly | 30-Year Monthly | Difference |
|---|---|---|---|
| 3.00% | $4,732 | $4,216 | $516 |
| 3.50% | $4,993 | $4,490 | $503 |
| 4.00% | $5,260 | $4,774 | $486 |
| 4.50% | $5,533 | $5,067 | $466 |
| 5.00% | $5,816 | $5,368 | $448 |
| 5.50% | $6,103 | $5,678 | $425 |
| 6.00% | $6,398 | $5,996 | $402 |
| 6.50% | $6,699 | $6,321 | $378 |
| 7.00% | $7,007 | $6,653 | $354 |
Monthly payments include principal and interest only. Property taxes, insurance, and condo fees are additional. At this level, property taxes alone may be $500–$1,000+/month.
Total cost of a $1,000,000 mortgage
| Interest Rate | Total Paid (25-yr) | Total Interest (25-yr) | Total Paid (30-yr) | Total Interest (30-yr) |
|---|---|---|---|---|
| 3.00% | $1,419,600 | $419,600 | $1,517,800 | $517,800 |
| 4.00% | $1,578,000 | $578,000 | $1,718,600 | $718,600 |
| 5.00% | $1,744,800 | $744,800 | $1,932,500 | $932,500 |
| 6.00% | $1,919,400 | $919,400 | $2,158,600 | $1,158,600 |
| 7.00% | $2,102,100 | $1,102,100 | $2,395,100 | $1,395,100 |
Key takeaway: At 5%, a $1M mortgage costs nearly $1.75 million total over 25 years. At 7% over 30 years, total interest reaches $1.4 million — you pay more in interest than the original mortgage amount. The difference between a 4% and 6% rate is $341,400 in interest.
How your payments break down over time
Here’s how a $1,000,000 mortgage at 5% (25-year amortization) breaks down:
| Year | Annual Interest | Annual Principal | Remaining Balance |
|---|---|---|---|
| 1 | $49,300 | $20,500 | $979,500 |
| 5 | $45,380 | $24,420 | $891,700 |
| 10 | $39,000 | $30,800 | $765,000 |
| 15 | $30,500 | $39,300 | $602,000 |
| 20 | $19,250 | $50,550 | $391,200 |
| 25 | $4,700 | $65,100 | $0 |
In the first year, 71% of every payment goes to interest. By year 15, principal and interest are roughly equal. You don’t start paying more principal than interest until about year 13.
25-year vs 30-year amortization
| Feature | 25-Year | 30-Year |
|---|---|---|
| Monthly payment (at 5%) | $5,816 | $5,368 |
| Total interest paid | $744,800 | $932,500 |
| Extra cost of 30-year | — | +$187,700 |
| Equity after 5 years | ~$108,300 | ~$72,300 |
| Who it’s for | Faster payoff, lower total cost | Lower monthly payments, more cash flow |
The 30-year option saves $448/month but costs an extra $187,700 over the life of the mortgage. That’s a steep price for cash-flow flexibility.
How payment frequency affects costs
| Frequency | Payment Amount | Annual Cost | Amortization | Interest Saved |
|---|---|---|---|---|
| Monthly | $5,816 | $69,792 | 25 years | — |
| Bi-weekly | $2,908 | $75,608 | 25 years | $0 |
| Accelerated bi-weekly | $2,908 | $75,608 | ~22 years | ~$84,000 |
Strategies to reduce your mortgage cost
- Choose a shorter amortization — 25 years instead of 30 saves $187,700 on a $1M mortgage at 5%
- Make accelerated bi-weekly payments — saves ~$84,000 and cuts 3 years off your amortization
- Use prepayment privileges aggressively — a $50,000 annual lump sum saves ~$190,000+ in interest
- Shop for a lower rate — 0.25% lower saves approximately $45,000 over 25 years
- Consider a shorter fixed term — if you expect rates to drop, a 2- or 3-year term may save on renewal
- Refinance strategically — at renewal, always shop around. Even 0.10% lower saves $18,000
Important considerations for $1M mortgages
This is always uninsured
A $1,000,000 mortgage requires at least 20% down on the purchase price. You’re buying a home worth at least $1.25 million. This means:
- No CMHC insurance premium — saving you tens of thousands
- Slightly higher rates — uninsured rates are typically 0.10–0.20% higher than insured
- 30-year amortization available — unlike insured mortgages (except for first-time buyers under new rules)
Qualification challenges
- Income required: approximately $175,000 to $225,000+ household income
- Stress test: must qualify at rate + 2% or 5.25%, pushing qualification rate to ~7%+
- At 7% qualification rate: monthly payment is $7,007 — lenders need to see income supporting this
Tax implications
- At this level, consider the impact of property taxes ($8,000–$15,000/year depending on municipality)
- If rental income is involved, consult a tax professional about income reporting requirements
Who carries a $1,000,000 mortgage?
A $1 million mortgage is the top of the conventional residential borrowing range in Canada and typically finances a purchase price of $1.25 million with 20% down. Because CMHC insurance is unavailable at this level, every borrower needs at least 20% in cash or equity and must qualify on an uninsured basis — which means the stress-test rate still applies but through the lender’s own criteria rather than an insurer’s. This is well above the current City of Toronto average of $1,010,836 (-3.23% YoY) and Vancouver’s composite benchmark of $1,088,800, meaning a $1.25M purchase price sits solidly in the premium tier even in Canada’s two most expensive markets — not merely the average detached home, but one priced meaningfully above it. Most million-dollar borrowers are high-income households earning $240,000–$290,000: senior executives, medical and legal professionals, tech leaders, or business owners. In Ottawa, Calgary, and Montréal, where benchmarks run $683,308, $565,600, and $589,000 respectively, this mortgage finances a genuine luxury-tier property, not just an above-average home. Private-banking mortgage products — which may offer preferential rates, interest-only options, or portfolio-based qualification — are worth exploring at this size.
Real cities where a $1,000,000 mortgage fits today
| City | July 2026 Benchmark/Average Price | What a $1.25M Purchase Buys |
|---|---|---|
| City of Toronto | $1,010,836 average (-3.23% YoY) | Above-average detached home |
| Vancouver | $1,088,800 composite | Above-average detached home |
| Ottawa | $683,308 average (-1.6% YoY) | Genuine luxury tier |
| Calgary | $565,600 benchmark (March 2026) | Genuine luxury tier |
Where a $1,000,000 mortgage applies
- Detached homes in Toronto — Midtown, East York, North York, Etobicoke
- Detached homes in Vancouver — East Vancouver, Burnaby, Coquitlam
- Luxury-tier properties in Ottawa, Calgary, or Montréal — well above the local benchmark
- Luxury condos — waterfront or premium high-rise units
- Purchase price: $1.25M+ with 20% down