Housing Pro · Lesson 1

Mortgage maths in depth

Where every payment really goes

Professional - Gold & Platinum

In this lesson

Understand amortization: how payments split between interest and principal, total interest, and the effect of extra payments.

Key takeaways

Payment ≈ P × r ÷ (1 − (1 + r)⁻ⁿ) with monthly rate r and n payments (simplified).
Early payments are mostly interest; the principal share grows over time.
Total interest on a long mortgage can approach the size of the loan.
Extra payments early in the term save the most interest. Canadian fixed rates compound semi-annually.

Watch this lesson with Tessa. The full video, worked example, calculator, quiz and Ask Tessa are part of Money Globe X Gold and Platinum. Create your account to start learning.

Next lesson: Investment property: cap rate and cash flow

Educational information only - not financial advice.

Create your free account

Free lessons, live markets and the Classroom. Founding members get their first year at a founding price - applied automatically at checkout.

Offer terms