What an amortization schedule actually shows
An amortization schedule lists every monthly payment over the life of your mortgage, split into principal and interest, with the remaining balance after each one. It's the single most useful document for understanding what your mortgage actually costs over time. The calculator above generates the schedule for any combination of loan amount, rate, and amortization length.
The principal-and-interest split, over time
Year one of a 25-year mortgage at 4.5%, almost all of each payment goes to interest. By year 10, roughly two-thirds interest, one-third principal. By year 20, the split flips. By year 25, the last payments are almost entirely principal. That crossover happens slower on a 30-year amortization, which is why a 30-year mortgage costs meaningfully more total interest than a 25-year at the same rate.
Total interest paid over the life of the loan
On a $600,000 mortgage at 4.5% over 25 years, the total interest paid is roughly $400,000. The same loan over 30 years is closer to $500,000. That extra $100,000 of interest is the price of the 30-year amortization's lower monthly payment. Whether the trade-off is worth it depends on your cash flow needs and whether you'd actually use the difference for higher-return investments.
What changes at renewal
The amortization clock keeps ticking through renewal. If you renew a 25-year mortgage at year 5 into a new 5-year term, your amortization at renewal is 20 years and the payment recalculates from the remaining balance at the new rate. The total amortization doesn't reset unless you explicitly extend it (some lenders allow amortization extensions at renewal, especially if cash flow tightens).
Why the schedule helps with prepayment planning
Looking at the schedule, you can see exactly how much a one-time prepayment shifts the trajectory. A $20K lump sum applied in year 3 reduces the principal balance immediately, which means every subsequent month's interest calculation runs on a smaller base. The total interest saved compounds. Our prepayment calculator models this directly.
How to use this calculator
Plug your loan amount, rate, and amortization length. The output is the full schedule, plus the total interest paid over the life of the loan. Compare 25-year vs 30-year side by side to see the interest cost of the longer term. Run a third scenario at a higher rate to see what renewal could look like in a worse rate environment. Book a 20-minute chat with the FRIVE team if you want help interpreting a specific schedule against your situation.
Frequently asked questions
What's the maximum amortization in Canada?
30 years for first-time buyers and new-construction buyers (since December 15, 2024), 30 years for any uninsured mortgage (20%+ down), and 25 years for insured non-first-time-buyer purchases of resale homes.
Can I change the amortization mid-term?
Sometimes. Some lenders allow amortization extensions at renewal, particularly if cash flow has tightened. Within a term, changing amortization usually requires a refinance with a break penalty.
How is interest compounded?
Canadian mortgages compound semi-annually, not monthly (unlike US conventions). The amortization schedule the calculator produces uses the standard Canadian semi-annual compounding convention.
What does "amortization period" mean vs "term"?
Amortization is the total time to pay off the loan if you only make minimum payments (25 or 30 years). Term is the length of the rate contract (usually 5 years for fixed). You'll have roughly five terms across a 25-year amortization.
Does the schedule include property tax?
No. The schedule shows principal and interest only. Property tax and insurance are paid separately (often via PIT — the lender collects them in your monthly payment and remits to the municipality and insurer). Use our mortgage payment calculator for the full PIT breakdown.
Does paying more than the minimum each month change the schedule?
Yes. Anything above the minimum monthly payment goes straight to principal, which accelerates the schedule. Lenders impose annual prepayment limits (typically 10-20% of original principal) on how much extra you can pay without penalty.
What rate should I use to plan?
Your current contract rate for the schedule of the current term. At renewal, use a higher rate (one to two percentage points above current) as a planning sanity check. The amortization schedule at the higher rate shows what payment shock could look like.
How do I export the schedule?
The calculator's schedule is on-screen. For a CSV export to plug into a spreadsheet, contact your mortgage broker — most broker tools will produce a formatted schedule on request.
Can I see when I'll cross 50% equity?
Yes. Look at the remaining balance column and find the row where the balance drops below half the original purchase price (adjusted for any appreciation). For a typical first-time buyer at 10% down, that's typically year 12-15 on a 25-year amortization at current rates.
Does the schedule account for variable rate changes?
No. The schedule assumes a constant rate for the full amortization. For variable-rate planning, run the schedule at the current rate, then at a higher rate to see the sensitivity. Variable rates that change month-to-month are impossible to schedule deterministically.
Sources
- OSFI Guideline B-20 — Residential Mortgage Underwriting. osfi-bsif.gc.ca
- Government of Canada — December 2024 30-year amortization rules. canada.ca/department-finance
- FRIVE journal — Pre-approval vs approval (mortgage mechanics). pre-approval-vs-approval-fraser-valley
