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How Much Does a $600,000 Mortgage Cost in Canada?

Updated

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

  1. Choose a shorter amortization — 25 years instead of 30 saves $112,500 on a $600K mortgage at 5%
  2. Make accelerated bi-weekly payments — saves ~$50,400 and cuts 3 years off your amortization
  3. Use prepayment privileges — a $20,000 annual lump sum saves ~$70,000+ in interest
  4. Shop for a lower rate — 0.25% lower saves approximately $27,000 over 25 years
  5. Increase payments when you can — a $300/month increase saves ~$28,000 in interest

Who carries a $600,000 mortgage?

A $600,000 mortgage, with a typical down payment, finances a home priced roughly $665,000–$750,000. That matches Waterloo Region’s July 2026 composite benchmark of $636,000 (-5.7% YoY), sits just below Niagara Region’s average of $662,239, and lines up with Barrie’s benchmark of $696,100. In Toronto and Vancouver, this size buys a well-located condo or a townhouse in the inner suburbs rather than a detached home. Most borrowers at this level are dual-income professional households earning $140,000–$170,000 combined. Because $600,000 is above the CMHC high-ratio threshold in many of these markets, borrowers who cannot put 20% down will see meaningful insurance premiums — roughly $19,000–$24,000 added to the mortgage balance — which makes pushing toward 20% down especially worthwhile at this size.

Real cities where a $600,000 mortgage fits today

City July 2026 Benchmark/Average Price Fits a $600K Mortgage?
Waterloo Region (KW) $636,000 (-5.7% YoY) Yes — close match with a typical down payment
Niagara Region $662,239 (-0.7% YoY) Yes, with 10–15% down
Barrie $696,100 (-6.1% YoY) Tight — needs 15–20% down
Toronto / Vancouver $1,003,956 / $1,088,800 No — condo or inner-suburb townhouse only

Where a $600,000 mortgage applies

  • Detached and semi-detached homes in Waterloo Region, Niagara, or Barrie — current benchmark prices line up closely with this mortgage size
  • 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

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