Amortization Calculator
Seeing the big picture matters
Amortization Schedule
See your principal and interest breakdown over the next 25 years.
Broker Tip: “Did you know? In a standard 25-year mortgage at 5% interest, you don’t actually start paying more toward your principal than your interest until around Year 11. This is why making small extra payments early on is so powerful—it knocks out future interest years before it has a chance to accumulate.”
What is the difference between mortgage amortization and mortgage term?
Think of amortization as the marathon (the total time it takes to pay the loan off entirely, usually 25 or 30 years). The term is just one leg of that race (the length of your current contract with the bank, usually 3 to 5 years). When your term ends, you renew at a new rate, but your amortization continues counting down.
Why does so little of my payment go toward the principal in the early years?
This is due to how front-loaded interest works. In the beginning, your mortgage balance is at its highest, so the interest calculation is also at its peak. As you chip away at the balance over the years, the interest portion of your payment shrinks, and the principal portion grows.
Can I change my amortization after I've started my mortgage?
Yes, but typically only during renewal or through a refinance. You can shorten your amortization at renewal to pay the house off faster, or extend it (up to the original limit) to lower your monthly payments if your budget gets tight.
Does a 30-year amortization always cost more than a 25-year?
In terms of total interest, yes. While a 30-year amortization gives you a lower monthly payment (better for cash flow), you are borrowing the money for five extra years, which results in significantly more interest paid to the bank over the life of the loan.
How does the "Stress Test" affect my amortization choice?
When we calculate your GDS/TDS ratios, using a 30-year amortization lowers your “paper” monthly payment. This can actually help you qualify for a higher mortgage amount even if you plan on making extra payments to pay it off in 25 years anyway.
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