§ Calculator · Housing
Interest-only vs amortizing
What this is
Side-by-side: interest-only mortgage vs fully-amortizing over the same horizon.
Compares cash-flow cost AND equity built. Interest-only has lower monthly cost but produces zero principal paydown. Amortizing costs more per month but builds equity from day one.
IO monthly
$1,997
Amortizing monthly
$2,575
Monthly cash freed by IO
$578
IO total cost
$119,800
Amortizing interest
$114,162
Equity built (amortizing)
$40,323
The 'right' choice depends on your goal. Investor with high-return alternative use: interest-only frees cash for that. Homeowner aiming to retire mortgage: amortizing always wins.
Disclaimer
Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.