Amortization is the total time it takes to fully pay off your mortgage — most commonly 25 years in Canada, with 30 years available to some buyers. A longer amortization lowers your regular payment but raises the total interest you pay. Test different periods with our mortgage calculators.
Amortization is the whole span of time needed to pay your mortgage down to zero, commonly 25 years in Canada and up to 30 years for eligible buyers such as first-time buyers on new builds. It differs from your term. A longer amortization shrinks each payment but increases lifetime interest. This is not financial advice.
Amortization is the total length of time your mortgage is scheduled to take to reach a zero balance through regular payments of principal and interest. In Canada the standard amortization is 25 years. Early in that schedule, most of each payment covers interest and only a small slice reduces the principal; as the years pass, the balance falls, the interest portion shrinks, and more of every payment chips away at what you owe. This gradual shift is why the first years of a mortgage build equity slowly.
This is the point most borrowers confuse. The amortization is the full repayment horizon — say 25 years. The term is the length of your current contract with a lender, usually one to five years, after which you renew. You typically move through several terms — and possibly several lenders and rates — before the amortization is finished. For a fuller breakdown, see our guide on term vs amortization.
Yes, for some buyers. A 30-year amortization is available on eligible insured mortgages — notably for first-time buyers purchasing newly built homes — and is commonly offered on uninsured mortgages with at least 20% down. Stretching to 30 years lowers the payment but means paying interest for five extra years. Eligibility and rules vary, so confirm what applies to your situation with your lender. First-time buyers should also review the down payment rules and our first-time buyer guide.
Here is an illustrative example. On a $500,000 mortgage at a 5% interest rate, a 25-year amortization produces a monthly payment of roughly $2,900, while a 30-year amortization drops it to about $2,660 — easier on the monthly budget. But over the full life of the loan, the 30-year schedule can cost tens of thousands of dollars more in interest because you carry the balance longer. These figures are illustrative only and not financial advice. You can flip this in your favour: making accelerated bi-weekly payments or lump-sum prepayments shortens the amortization and saves interest. Because your qualifying payment must also clear the stress test (the higher of your contract rate plus 2% or 5.25%), amortization length affects how much home you can afford. Watch where borrowing costs may head via the next rate decision and inflation rate.
Amortization is the total length of time it takes to pay off your entire mortgage through regular payments. In Canada it is most commonly 25 years, though 30-year amortizations are available to some buyers, including first-time buyers purchasing new builds and other eligible insured buyers.
The amortization is the full time to repay the whole loan, such as 25 years. The term is the length of your current contract with a lender, commonly one to five years. At the end of each term you renew, and you may go through several terms before the amortization is complete.
Yes. Spreading the balance over more years reduces each regular payment because you are paying down the principal more slowly. The trade-off is that you pay interest for longer, so a longer amortization increases the total interest paid over the life of the mortgage.
A 30-year amortization is available to some buyers. It is offered on eligible insured mortgages, including for first-time buyers purchasing newly built homes, and is common on uninsured mortgages with at least 20% down. Rules and eligibility vary, so confirm with your lender.
You can shorten your amortization by increasing your regular payment, switching to accelerated bi-weekly payments, or making lump-sum prepayments within your lender's limits. Each extra dollar goes straight to principal, cutting both the time remaining and the total interest.