Mortgage Options In Canada.

Choosing a Mortgage amortization period in Vancouver.

The mortgage amortization period is defined as the length of time it takes you to pay off your mortgage in full.

The longest mortgage amortization period in Canada use to be 25 years.

Today, high ratio insured mortgages (less than 20% down) allow up to 30 year amortizations, while some lender will still allow up to 40 years on conventional deals.

Longer mortgage amortization periods generally mean lower mortgage payments and higher purchasing power.

While shorter mortgage amortization periods, mean larger payments — but less interest paid.

The shorter the amortization, the quicker you’ll pay off your mortgage, hence the less interest you will pay.

The following mortgage table shows how much mortgage interest is paid (over different amortization periods) on a $150,000 mortgage amount, assuming a constant annual interest rate of 5.45%.

Impact of amortization on total interest paid
Mortgage amount
Monthly payment
Total interest paid
30 years
25 years
20 years
15 years
10 years

In the above example:

increasing your payment by just $70 from $841 to $911 per month means you would be mortgage-free five years earlier and save almost $30,000 in interest charges;

increasing the monthly payment by $181 from $841 to $1,022 would allow you to be mortgage free 10 years earlier and save over $57,000 in interest.

There are many other ways to pay less interest and I can show you how.

604-273-2002 or on the web


As usual, make it a great day and we’ll talk to you soon.

Mark Fidgett, Your Vancouver Mortgage Broker For Life


P.S. Who’s the next person you know who needs Help with their Stuff?
Be sure to give me a call so we can help them get on that path!