Guide · Canada
Mortgage Amortization in Canada: What You Need to Know
Last updated 2026-06-27 · Published 2026-06-27
Understand amortization periods in Canada. Compare 25-year and 30-year schedules, learn the difference between term and amortization, and save money on interest.
Amortization Period vs. Mortgage Term
It is easy to confuse your mortgage term with your amortization period, but they are very different concepts in the Canadian mortgage system.
The Amortization Period is the total number of years it will take to pay off your mortgage balance in full (usually 25 years). The Mortgage Term is the duration of your interest rate contract with the lender (typically 5 years). You will renew your mortgage multiple times during the overall amortization period.
Canadian Rules for Amortization Limits
In Canada, federal regulations govern the maximum amortization period allowed. If your down payment is less than 20%, you must purchase mortgage default insurance (CMHC), and your maximum amortization is capped at 25 years.
If your down payment is 20% or more, you can choose a 30-year amortization period. This lowers your monthly repayments, but you pay more total interest over the life of the loan.
How Shorter Amortization Saves Money
Opting for a shorter amortization period (such as 20 years instead of 25) means your monthly payments will be higher, but you pay off the principal balance much faster.
This prevents interest from compounding over those extra five years, resulting in tens of thousands of dollars in interest savings. You can also make extra payments or choose accelerated bi-weekly payments to shorten your amortization.
Try the numbers yourself
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Go to calculator →Frequently asked questions
What is the standard amortization period in Canada?
The standard amortization period for most new homebuyers in Canada is 25 years. This is the maximum allowed for insured mortgages (down payments under 20%).
Can I lengthen my amortization period at renewal?
Generally, no, unless you refinance your mortgage. At standard renewal, you simply continue on your existing amortization path. Lengthening the period requires qualifying for a refinance and may incur additional fees.
Educational content only—not mortgage, tax, or legal advice. Confirm any decision with a licensed professional in your jurisdiction.