How much does a $600,000 mortgage cost?
A $600,000 mortgage puts you into serious territory — at today’s rates, you’ll pay over a million dollars in total before this mortgage is paid off. Understanding the full cost is essential for making an informed decision about how much to borrow.
Monthly payments at every rate
| Interest Rate | 25-Year Monthly | 30-Year Monthly | Difference |
|---|---|---|---|
| 3.00% | $2,839 | $2,529 | $310 |
| 3.50% | $2,996 | $2,694 | $302 |
| 4.00% | $3,156 | $2,864 | $292 |
| 4.50% | $3,320 | $3,040 | $280 |
| 5.00% | $3,489 | $3,220 | $269 |
| 5.50% | $3,662 | $3,406 | $256 |
| 6.00% | $3,839 | $3,597 | $242 |
| 6.50% | $4,019 | $3,793 | $226 |
| 7.00% | $4,203 | $3,992 | $211 |
Monthly payments include principal and interest only. Property taxes, insurance, and condo fees are additional.
Total cost of a $600,000 mortgage
| Interest Rate | Total Paid (25-yr) | Total Interest (25-yr) | Total Paid (30-yr) | Total Interest (30-yr) |
|---|---|---|---|---|
| 3.00% | $851,700 | $251,700 | $910,400 | $310,400 |
| 4.00% | $946,800 | $346,800 | $1,031,000 | $431,000 |
| 5.00% | $1,046,700 | $446,700 | $1,159,200 | $559,200 |
| 6.00% | $1,151,700 | $551,700 | $1,294,900 | $694,900 |
| 7.00% | $1,260,900 | $660,900 | $1,437,200 | $837,200 |
Key takeaway: At 5%, a $600K mortgage costs over $1 million total. At 6%+, you’ll pay more in interest than you originally borrowed in 30-year scenarios.
How your payments break down over time
Here’s how a $600,000 mortgage at 5% (25-year amortization) breaks down:
| Year | Annual Interest | Annual Principal | Remaining Balance |
|---|---|---|---|
| 1 | $29,580 | $12,300 | $587,700 |
| 5 | $27,230 | $14,650 | $535,000 |
| 10 | $23,400 | $18,480 | $459,000 |
| 15 | $18,300 | $23,580 | $361,200 |
| 20 | $11,550 | $30,330 | $234,900 |
| 25 | $2,820 | $39,060 | $0 |
25-year vs 30-year amortization
| Feature | 25-Year | 30-Year |
|---|---|---|
| Monthly payment (at 5%) | $3,489 | $3,220 |
| Total interest paid | $446,700 | $559,200 |
| Extra cost of 30-year | — | +$112,500 |
| Equity after 5 years | ~$65,000 | ~$43,400 |
| 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 | $3,489 | $41,868 | 25 years | — |
| Bi-weekly | $1,745 | $45,370 | 25 years | $0 |
| Accelerated bi-weekly | $1,745 | $45,370 | ~22 years | ~$50,400 |
Strategies to reduce your mortgage cost
- Choose a shorter amortization — 25 years instead of 30 saves $112,500 on a $600K mortgage at 5%
- Make accelerated bi-weekly payments — saves ~$50,400 and cuts 3 years off your amortization
- Use prepayment privileges — a $20,000 annual lump sum saves ~$70,000+ in interest
- Shop for a lower rate — 0.25% lower saves approximately $27,000 over 25 years
- Increase payments when you can — a $300/month increase saves ~$28,000 in interest
Where a $600,000 mortgage applies
- Detached homes in growing markets — Calgary, Ottawa, Winnipeg, or suburban GTA
- Townhomes and semis in major cities — Toronto, Vancouver, or Montréal
- Move-up buyers — a $750K home with 20% down
- First-time buyers with higher incomes — dual-income households in expensive markets