What Is Amortization?

Mortgage Glossary for Ontario Homeowners
The total length of time it takes to pay off a mortgage in full.
In Canada, the standard amortization period is 25 years for insured mortgages (less than 20% down payment). As of 2024, first-time home buyers can qualify for 30-year amortization on insured mortgages. Uninsured mortgages (20%+ down) can have amortizations up to 30 or even 35 years depending on the lender. A longer amortization means lower monthly payments but significantly more total interest paid over the life of the loan.

Related terms: Mortgage Term | Principal | Interest

Questions About Amortization?

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