The total length of time it takes to pay off your mortgage in full if you make every scheduled payment. In Canada, the most common amortization period is 25 years for insured mortgages (less than 20% down) and up to 30 years for conventional mortgages. A longer amortization means lower monthly payments but more interest paid over time.
Why It Matters
Don't confuse amortization with your mortgage term -- they're different. Your term might be 5 years, but your amortization is 25. A shorter amortization saves you significant interest over the life of the mortgage. Even increasing your payments slightly can shave years off your amortization.
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