Mortgage Glossary

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Amortization

This is the length of time it would take to pay off the mortgage - assuming that the interest rate never changed, all payments were made on time and no additional payments were made.

In Canada the shortest amortization is usually 5 years, and the longest is 40 years. Currently very few lenders will agree to an amortization longer than 25 years.

It is to your advantage to choose the shortest amortization that you can afford. This will save you thousands of dollars in interest in the long run.

 

 

 

 

 

 

 

 

 

 

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