Unpacking 3 major components of a mortgage

June 1, 2026

 

A mortgage payment consists of several components: the mortgage principal and interest, and mortgage life insurance.

What is mortgage principal?

The mortgage principal is the original mortgage amount minus payments made toward it, excluding interest, calculated on the remaining principal balance.

What is mortgage interest?
Mortgage interest costs are normally front-loaded, with interest comprising the largest percentage of your mortgage payment at the beginning of the mortgage payment cycle and decreasing as you near the end of the payments.

What is mortgage life insurance?
Mortgage life insurance premiums are added to your mortgage payment (in most cases), ensuring that if you pass away, and your claim is approved, the outstanding principal balance of your mortgage is reduced or paid off.

Alternatively, you could look at personally owned life insurance, which may give you more control in the future.

Please give me a call or connect via this website to arrange a meeting to discuss any mortgage questions that you may have.

 

Publisher's Copyright & Legal Use Disclaimer

All articles are a legal copyright of Adviceon®Media.

The particulars contained herein were obtained from sources which we believe are reliable, but are not guaranteed by us and may be incomplete. This website is not deemed to be used as a solicitation in a jurisdiction where this representative is not registered. This content is not intended to provide specific personalized advice, including, without limitation, investment, insurance, financial, legal, accounting or tax advice; and any reference to facts and data provided are from various sources believed to be reliable, but we cannot guarantee they are complete or accurate; and it is intended primarily for Canadian residents only, and the information contained herein is subject to change without notice. References in this Web site to third party goods or services should not be regarded as an endorsement, offer or solicitation of these or any goods or services. Always consult an appropriate professional regarding your particular circumstances before making any financial decision.

Mutual Funds and/or Segregated Funds Disclaimer

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investment funds, including segregated fund investments. Please read the fund summary information folder prospectus before investing. Mutual Funds and/or Segregated Funds may not be guaranteed, their market value changes daily and past performance is not indicative of future results. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision. Talk to your advisor before making any financial decision. A description of the key features of the applicable individual variable annuity contract or segregated fund is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. Product features are subject to change.