Mortgage Tip: Amortization Period

Amortization

The length of time it takes to pay off a mortgage in full.

If your down payment is less than 20% of the purchase price of your home, the longest amortization period allowed is only 25 years.

Tip

Longer amortization period means lower mortgage payment, but it is to your advantage to choose the shortest amortization period.  You will save thousands or even tens of thousands of dollars in interest in the long run.

 

Original article: www.fcac-acfc.gc.ca