Why $250,000 of Your Mortgage Never Pays Off Debt

Only $800 of your $2,800 payment cuts your debt. 1. On a $500,000 Calgary condo mortgage, only $800 of a $2,800 monthly payment actually reduces what you owe — the rest is pure interest. That’s how amortization front-loads your costs. → $800 2. Borrowing $400,000 at 4.5% costs you roughly $18,000 per year in interest alone — and that interest is calculated on whatever principal you still owe, so paying it down faster saves you real money. → $18,000 3. Over a 25-year amortization, a $400,000 mortgage can cost you $650,000 or more in total payments — meaning you could pay $250,000 in interest that never reduces your debt by a single dollar. → $250,000 4. Four strategies attack your principal directly: accelerated biweekly payments, lump-sum contributions, increasing your regular payment amount, or shortening your amortization at renewal — any one of them can shave years off your mortgage. Full breakdown linked in bio — 🌐 getwealthy.blog #canadafinance #personalfinance #canadianmoneytalk #moneytips #canada