How much does a $300,000 mortgage cost?
A $300,000 mortgage is one of the most common mortgage amounts in Canada — typical for first-time buyers in mid-range markets or move-up buyers putting 20%+ down. Here’s exactly what this mortgage will cost you.
Monthly payments at every rate
| Interest Rate | 25-Year Monthly | 30-Year Monthly | Difference |
|---|---|---|---|
| 3.00% | $1,419 | $1,264 | $155 |
| 3.50% | $1,498 | $1,347 | $151 |
| 4.00% | $1,578 | $1,432 | $146 |
| 4.50% | $1,660 | $1,520 | $140 |
| 5.00% | $1,745 | $1,610 | $135 |
| 5.50% | $1,831 | $1,703 | $128 |
| 6.00% | $1,919 | $1,799 | $120 |
| 6.50% | $2,010 | $1,896 | $114 |
| 7.00% | $2,101 | $1,996 | $105 |
Monthly payments include principal and interest only. Property taxes, insurance, and condo fees are additional.
Total cost of a $300,000 mortgage
| Interest Rate | Total Paid (25-yr) | Total Interest (25-yr) | Total Paid (30-yr) | Total Interest (30-yr) |
|---|---|---|---|---|
| 3.00% | $425,700 | $125,700 | $455,000 | $155,000 |
| 4.00% | $473,400 | $173,400 | $515,500 | $215,500 |
| 5.00% | $523,500 | $223,500 | $579,600 | $279,600 |
| 6.00% | $575,700 | $275,700 | $647,800 | $347,800 |
| 7.00% | $630,300 | $330,300 | $718,600 | $418,600 |
Key takeaway: At 5%, choosing 30 years over 25 years costs an extra $56,100 in interest. That’s the price of lower monthly payments.
How your payments break down over time
Here’s how a $300,000 mortgage at 5% (25-year amortization) breaks down:
| Year | Annual Interest | Annual Principal | Remaining Balance |
|---|---|---|---|
| 1 | $14,790 | $6,150 | $293,850 |
| 5 | $13,615 | $7,325 | $267,500 |
| 10 | $11,700 | $9,240 | $229,500 |
| 15 | $9,150 | $11,790 | $180,600 |
| 20 | $5,775 | $15,165 | $117,400 |
| 25 | $1,410 | $19,530 | $0 |
25-year vs 30-year amortization
| Feature | 25-Year | 30-Year |
|---|---|---|
| Monthly payment (at 5%) | $1,745 | $1,610 |
| Total interest paid | $223,500 | $279,600 |
| Extra cost of 30-year | — | +$56,100 |
| Equity after 5 years | ~$32,500 | ~$21,700 |
| Who it’s for | Faster payoff, lower total cost | Lower monthly payments, more cash flow |
How payment frequency affects costs
| Frequency | Payment Amount | Annual Cost | Amortization | Interest Saved |
|---|---|---|---|---|
| Monthly | $1,745 | $20,940 | 25 years | — |
| Bi-weekly | $872 | $22,672 | 25 years | $0 |
| Accelerated bi-weekly | $872 | $22,672 | ~22 years | ~$25,200 |
Strategies to reduce your mortgage cost
- Choose a shorter amortization — 25 years instead of 30 saves $56,100 on a $300K mortgage at 5%
- Make accelerated bi-weekly payments — saves ~$25,200 and cuts 3 years off your amortization
- Use prepayment privileges — a $10,000 annual lump sum saves ~$30,000+ in interest
- Shop for a lower rate — 0.25% lower saves approximately $13,500 over 25 years
- Increase payments when you can — a $150/month increase saves ~$15,000 in interest
Where a $300,000 mortgage applies
- First-time buyers in affordable markets — homes in Edmonton, Winnipeg, Saskatoon, or Atlantic Canada
- Entry-level homes with moderate down — a $375K home with 20% down, or a $315K home with 5% down
- Condo purchases in larger cities — condos in Calgary, Ottawa, or Montréal suburbs
- Downsizing — selling a family home and buying a smaller property