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25 vs 30 year amortization calculator
A longer amortization lowers your payment and raises the interest you pay over the life of the mortgage. On an insured mortgage it also costs an extra 0.20% in premium, and only some buyers can get it. This calculator compares both and applies the eligibility rule.
Your numbers
Our published 5-year fixed.
Shows provincial sales tax payable in cash on any default-insurance premium.
30-year eligibility
On an insured mortgage, a 30-year amortization is available only to first-time buyers and purchasers of newly built homes.
Neither you nor your spouse has owned a home you lived in during the current or previous four calendar years.
A home no one has lived in before. New builds are common in Edmonton.
Sets the balance-at-horizon comparison, which is usually the most useful row.
Rate taken from the RateLens published table, current as of September 21, 2026 at 9:00 a.m. MT. Rules, premium tiers and fee schedules current as of September 16, 2026.
How much less you'd pay with 30 years
$243.84/mo
30 years saves $243.84 every month but costs $68,626 more in interest over the life of the mortgage, plus $950 more in insurance premium up front.
- Extra interest over the life
- $68,626What the lower payment costs in total
- Extra premium up front
- $950The 0.20 point surcharge on a 30-year insured amortization
- Still owing after 7 years, 25-year
- $401,593$92,407 repaid
- Still owing after 7 years, 30-year
- $426,494$24,901 more than the 25-year
You're eligible for a 30-year insured amortization
- Regime
- Insured
- Premium, 25-year
- 4.00% · $19,000
- Premium, 30-year
- 4.20% · $19,950
- PST on the premium
- $0 (Alberta)
- Compounding
- Semi-annual
- Rules as of
- September 16, 2026
25 vs 30 years, line by line
Same price, same down payment, same rate. Only the amortization changes.
| Measure | 25 years | 30 years |
|---|---|---|
| Default insurance premium rateThe 30-year option carries a 0.20 point surcharge | 4.00% | 4.20% |
| Premium | $19,000 | $19,950 |
| PST on the premium, payable in cashAlberta provincial sales tax is payable in cash at closing when applicable | $0 | $0 |
| Total mortgage | $494,000 | $494,950 |
| Payment (every month) | $2,622.70 | $2,378.86 |
| Total interest over the life | $292,809 | $361,435 |
| Total paid over the life | $786,809 | $856,385 |
| Balance after 7 yearsThe number that matters if you expect to move | $401,593 | $426,494 |
| Interest paid by year 7 | $127,900 | $131,369 |
5 extra years of interest on a slightly larger balance. This is the cost of the lower payment.
- 25 years$292,809
- 30 years$361,435$68,626 more
| Jurisdiction | Total interest |
|---|---|
| 25 years | $292,809 |
| 30 years | $361,435 |
If you expect to sell around then, this is the difference the amortization makes for you.
- 25 years$92,407
- 30 years$68,456$24,901 less
| Jurisdiction | Principal repaid |
|---|---|
| 25 years | $92,407 |
| 30 years | $68,456 |
How long the extra premium takes to pay for itself
Take 30 years and pay it like 25
Take the 30-year amortization for the flexibility, then use your prepayment privileges to pay it like a 25-year. You keep the lower required payment for the month something goes wrong, and you avoid most of the extra interest by choice.
30 years saves you
$243.84/mo
How this is calculated
Every figure on this page comes from one tested calculation engine. Here’s what it does.
Who can get a 30-year amortization
Since 15 December 2024, a 30-year amortization is available on an insured mortgage to first-time buyers and to purchasers of newly built homes. It carries a 0.20 percentage point surcharge on the default insurance premium. If you fit neither category, an insured mortgage stops at 25 years.
With 20% or more down, the mortgage isn’t insured, there’s no premium and the federal rule doesn’t apply. Whether you can get a 30-year (or 35-year) amortization is then up to the lender, and the answer varies by lender and by file. The calculator tells you when you’re in this situation.
How the two columns are calculated
Both columns use the same price, down payment and rate, and both run a full amortization schedule with semi-annual compounding. The premium is calculated separately for each, because the 30-year option is charged at a higher rate (4.20% against 4.00% at 95% loan-to-value). The premium is added to the mortgage, so the 30-year column pays interest on a slightly larger balance for 5 more years. The interest figure includes both effects.
In Alberta there’s no provincial sales tax on the premium, so the surcharge costs nothing extra in cash at closing. In Ontario, Quebec and Saskatchewan, the PST on the premium is paid in cash and can’t be added to the mortgage.
Start with the balance at your horizon
For most people, the balance at your horizon is more useful than the lifetime interest. Very few mortgages run their full amortization. If you expect to sell or refinance in 7 years, what matters is how much you’ll still owe in 7 years, and the gap there is much smaller than the lifetime figure suggests. Set the horizon to how long you expect to stay, and read that row.
Paying a 30-year mortgage off faster
You can take the 30-year amortization and pay it like a 25-year, using your prepayment privileges. You keep the lower required payment for the month the furnace dies, and you avoid most of the extra interest by choice. Model that here.
Common questions
Who can get a 30-year amortization in Canada?
On an insured mortgage (under 20% down), 30 years is available to first-time buyers and to purchasers of newly built homes, at a cost of 0.20 percentage points of extra premium. Everyone else is limited to 25.
With 20% or more down, the mortgage is uninsured and the federal rule doesn’t apply. The amortization is then up to the lender.
How much does a 30-year amortization cost?
On a $500,000 purchase with 5% down, the extra interest is roughly $85,000 over the full amortization, plus about $950 of extra premium.
The premium surcharge is 0.20 points. It’s added to the mortgage, and there’s no PST on it in Alberta. The interest is the bigger cost: 5 more years of payments on a slightly larger balance.
Is a 30-year amortization a bad idea?
Not necessarily. You get a lower required payment, and you pay more interest in total.
Whether that’s worth it depends on what you do with the monthly room. Building an emergency fund, or being able to qualify at all, are good reasons. Using it to buy a more expensive house at the same monthly cost moves the risk around without reducing it.
Can I switch from a 30-year to a 25-year amortization later?
You don’t need to. Raising your regular payment within your prepayment privileges shortens the effective amortization without changing the contract. Most lenders allow 10% to 20% a year.
That keeps the lower required payment as a floor while you pay the mortgage off sooner. You can also formally shorten the amortization at renewal at no cost.
Does a longer amortization help me qualify for more?
Yes, though less than people expect.
A lower payment at the qualifying rate leaves more room inside GDS and TDS, so the maximum price goes up. The stress test still applies at the same minimum qualifying rate, though, and the extra premium makes the loan slightly bigger. The affordability calculator shows the difference for your income.
What to work out next
- Mortgage paymentThe payment on its own, at all six Canadian frequencies.
- CMHC insurance premiumHow the premium and the 0.20 point surcharge are calculated.
- AffordabilityA longer amortization changes the price your income supports.
- PrepaymentModel a 30-year mortgage paid off on a 25-year schedule.
- Down paymentWith 20% down, there's no premium and the 30-year rule doesn't apply.
- First-time buyer plannerThe other first-time buyer programs, stacked together.
This calculator provides estimates only. Results are based on the information you enter and on assumptions that may not reflect your actual qualification, rate or costs. These include semi-annual, not-in-advance compounding for fixed rates, as required under section 6 of the federal Interest Act, and the mortgage default insurance premium tiers published by CMHC, Sagen and Canada Guaranty. It is not mortgage advice, a quote, a rate hold, a pre-approval or an offer of credit, and RateLens does not guarantee its accuracy or completeness. Your actual rate, payment, default insurance premium and closing costs will depend on your credit profile, income, the property, the lender’s current rates and policies, and other factors confirmed during a full application.
Premiums shown approximate the published premium schedules of CMHC, Sagen and Canada Guaranty and are subject to each insurer’s current rate sheet. They are not guaranteed by RateLens. No provincial sales tax applies to the premium in Alberta. In Ontario, Quebec, Saskatchewan and Manitoba, PST on the premium is payable in cash at closing and cannot be added to the mortgage. Default insurance is not available on properties priced at or above $1,500,000.
Rules snapshot: September 16, 2026. Rates shown are calculation assumptions, not confirmed offers. Speak with Daniel De Sousa, Mortgage Associate, for a personalized quote. Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a licensed mortgage brokerage licensed by RECA.
Daniel De Sousa, Mortgage Associate, is licensed by the Real Estate Council of Alberta and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage is a mortgage brokerage licensed by the Real Estate Council of Alberta (RECA). Verify our licence on RECA ProCheck(opens in a new tab)
RateLens is a trade name used by Daniel De Sousa, Mortgage Associate, licensed in Alberta by the Real Estate Council of Alberta and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
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Check if you can get a 30-year amortization
First-time buyer, newly built home, insured or not. We'll confirm which rules apply to your file before you make an offer. It takes about 5 minutes.
No credit check, and no commitment.