Amortization Comparison Chart
The chart below shows the impact of various amortization periods on the monthly mortgage payment and total interest costs (over the full amortization). It is important to be aware that the total interest costs increase significantly if amortization period exceeds 25 years. Let one of our business advisors help determine whether an extended amortization period is right for you.
Example: Extended Amortization – 5 Year Fixed Rate Closed Mortgage
| Details | 25 Year | 30 Year | 35 Year | 40 Year |
| Mortgage Principal | $150,000.00 | $150,000.00 | $150,000.00 | $150,000.00 |
| Default Insurance Premium @ 90% LTV | $3,000.00 | $3,300.00 | $3,600.00 | $3,900.00 |
| Total Mortgage Principal | $153,000.00 | $153,300.00 | $153,600.00 | $153,900.00 |
| Monthly Mortgage Payment (P & I) Monthly payment reduction from 25 Year Amortization |
$978.91 | $911.87 $67.04 |
$868.23 $110.68 |
$838.90 $140.01 |
| Term Interests Costs (5 yrs @ 6.00%) Additional Term Interest costs over the 25 Year Amortization |
$43,184.34 | $43,933.66 $749.32 |
$44,457.45 $1,273.11 |
$44,843.31 $1,658.97 |
| Balance @ Maturity | $137,449.75 | $142,521.46 | $145,963.65 | $148,409.31 |
| Interests Costs for Full Amortization Additional Interest Costs for the Full Amortization over the 25 Year Amortization |
$140,668.98 | $174,967.56 $34,298.58 |
$211,052.59 $70,383.61 |
$248,753.29 $108,084.31 |
The Interest Costs for Full Amortization is based on the selected interest rate being applicable throughout the amortization period and the payments remaining constant with no prepayments or skipped payments. These results are based on the accuracy and completeness of the data you have entered and are for illustrative and general information purposes only.
Royal Bank of Canada does not make any express or implied warranties or representations with respect to any information or results in connection with the calculator. Royal Bank of Canada will not be liable for any losses or damages arising from any errors or omissions in any information or results, or any action or decision made by you in reliance on any information or results.
