Mortgage · Canada
Amortization schedule.
See the principal and interest breakdown of every payment over the life of your mortgage, with Canadian semi-annual compounding.
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Schedule
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How amortization works
Each payment is split between interest (calculated on the remaining balance) and principal (which reduces the balance). Early on, most of the payment goes to interest; over time, more goes to principal.
Canadian mortgages compound semi-annually, not in advance. The schedule below uses that convention.
TNAADO Inc. · Toronto
Why the early years are almost all interest
An amortized payment is constant but its split is not. Interest is charged on the outstanding balance, so at the start, when the balance is highest, most of the payment is interest and very little touches principal. That reverses slowly, and on a 25-year Canadian mortgage the crossover point typically arrives well past the halfway mark. The schedule is the only honest way to see it; the payment figure on its own hides it completely.
The mistake people make. Confusing the term with the amortization. A five-year term is the contract. The 25-year amortization is the repayment horizon. At the end of the term you renew whatever balance remains at whatever rates exist then, which is the real interest-rate risk in a Canadian mortgage and the reason the later years of any schedule are an estimate rather than a promise.
Disclaimer
Estimates for educational purposes only. Actual schedules from your lender may vary slightly due to rounding and payment timing.