am·or·ti·za·tion pe·ri·od
noun
The period of time it will take to pay off a mortgage in full.
Amortization periods refer to the length of time it takes you to repay your mortgage.
Typical amortization periods range from 10 to 25 years.
Longer amortization periods mean lower mortgage payments, but in the end you pay more interest.
Shorter amortization periods save you money and help you pay off your mortgage faster. But they may impact your ability to save for other things, afford what is important to you, or make your mortgage payments in the event your financial circumstances change.
Only you can assess your finances and choose an amortization period that suits you and your budget.
Buying a home may be one of the biggest financial decisions you’ll ever make. That’s why financial literacy is so important and why I’m pleased that November is Financial Literacy Month. When you have the financial knowledge you need, you are better able to make informed choices and contribute to a prosperous Canadian economy.
For more information on the financial aspects of the home buying process check out the Homebuyers’ Road Map, a collaboration between The Canadian Real Estate Association and the Financial Consumer Agency of Canada.
To access the Homebuyers’ Road Map please visit:
http://crea.ca/resources