Amortization Period
The amortization period is the total length of time it will take to fully repay a mortgage if all payments are made as scheduled. It represents the full lifespan of the loan, even though the mortgage itself is renewed in shorter segments called terms.
In Canada, common amortization periods are 25 or 30 years. While the interest rate and mortgage terms may change over time, the amortization period determines how the mortgage balance is spread out and how much principal is repaid with each payment.
Why this matters:
A longer amortization period results in lower monthly payments, but it also increases the total interest paid over the life of the mortgage. Understanding the amortization period helps borrowers balance affordability today with long-term cost, and see how choices like prepayments or refinancing can shorten the overall repayment timeline.
Related Mortgage Terms
Often confused with:
Mortgage Term — Term is your contract length; amortization period is the full payoff timeline.
Closely related:
Amortization — The paydown process itself.
Interest Rate — Rates influence how much interest you pay over the amortization period.
Next step:
Mortgage Term — Understand how your mortgage is structured in shorter renewal cycles.