Mortgage Amortization Explained: Choosing the Right Term for You

Understanding Mortgage Amortization

Amortization is the total time to pay off your mortgage with regular payments.

Amortization Options in Canada

Standard Options:

• 25 years (most common)
• 20 years
• 15 years

Extended (Uninsured Only):

• 30 years
• 35 years (limited availability)

Impact on Monthly Payments

$500,000 Mortgage at 5%:

Choosing Your Amortization

Choose Shorter (15-20 years) If:

• You can afford higher payments
• You're older and want mortgage-free before retirement
• You prioritize interest savings

Choose Standard (25 years) If:

• You want balanced payment/savings
• You're younger with income growth ahead
• It's your first home purchase

Choose Longer (30 years) If:

• You need lowest possible payment
• You have variable/uncertain income
• You're in expensive market

Frequently Asked Questions

Can I change my amortization mid-term?

Generally only at renewal. But prepayments effectively shorten your amortization anytime.

Does longer amortization affect approval?

It makes it easier to qualify since payments are lower.

Use our calculator to compare amortization scenarios.