MONEY GLOBE XHousing 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.
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Next lesson: Investment property: cap rate and cash flow
Educational information only - not financial advice.