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Selecting a Shorter Amortization at Renewal
If you choose a shorter amortization period, you can save a lot of money and live mortgage-free sooner.
This chart compares interest costs and monthly payments on an $80,000 mortgage amortized over 15 years with those for the same mortgage amortized over 25 years. You can see how great the savings are with the shorter amortization period!
Mortgage $80,000, 25-Year amortization:
| Interest rate |
Monthly payment |
Total repaid* |
Total interest cost* |
| 5% |
$465.29 |
$139,583 |
$59,583 |
| 7% |
$560.34 |
$168,096 |
$88,096 |
| 9% |
$662.39 |
$198,709 |
$118,709 |
| 11% |
$770.03 |
$230,999 |
$150,999 |
Mortgage $80,000, 15-Year amortization:
| Interest rate |
Monthly payment |
Total repaid* |
Total interest cost* |
| 5% |
$630.50 |
$113,490 |
$33,490 |
| 7% |
$714.60 |
$128,628 |
$48,628 |
| 9% |
$803.62 |
$144,650 |
$64,650 |
| 11% |
$897.07 |
$161,469 |
$81,469 |
*Calculated assuming a constant interest rate throughout amortization period over the life of the mortgage. Compounded, semi-annually not in advance.
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Whatever home buying stage you're in, we can offer you real savings and sound advice. Contact a mortgage specialist today! |
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First Time Home Buyer
RBC Homeline Plan
Client Story
Randy & Neil using
RBC Homeline Plan
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