# Total Interest Cost Comparison

> The table below compares the long-term price factors for a 5-year extension with two different amortization periods.

Category: Purchasing
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/purchasing/total-interest-cost-comparison

## Answer
## Mortgage Comparison

The table below compares the long-term price factors for a 5-year extension with two different amortization periods. For example, the monthly payment figures are calculated using the standard Canadian semi-annual compounding method.

| Item               | 25-Year Amortization | 30-Year Amortization |
|--------------------|----------------------|----------------------|
| Monthly Payment    | Varies by loan amount and rate | Varies by loan amount and rate |
| Total Interest     | Varies by loan amount and rate | Varies by loan amount and rate |
| Principal Paydown  | Faster               | Slower               |
| Qualification      | Depends on lender policies and stress test rules | Depends on lender policies and stress test rules |
| Best For           | Wealth Building      | Affordability        |

*Calculation Example: The monthly payment is derived using the Mortgage Payment formula with standard Canadian semi-annual compounding. Additional details on the amortization calculations can be provided upon request.*

## Related guide
- https://ratellow.com/guides/amortization-25-vs-30-years

## Sources
- BANKOFCANADA — https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/#Introduction