Amortization

Today we're going to talk about an amortization.

What is an amortization? An amortization is the length of time that it will take you to pay your mortgage to zero, and an amortization helps to dictate what your monthly payment will be to ensure that over that period of time your mortgage is actually paid to zero.

• The most common amortization in Canada is 25 years.

• If you have a down payment of less than 20%, down a 25 year amortization is the maximum amortization that you can have.

• If you have a down payment of 20% or more, then in Canada you can have an amortization of 30 years if you'd like.

• And we have some lenders who actually allow us to extend amortization to 35 years, although those are generally only specialty programs.

There's lots more we can chat about. So give us a call if you have questions.

Have a beautiful day.