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Juan GutierrezMortgage broker · Quebec

What is Amortization? · Concepts

Amortization

Amortization is the total number of years to pay off the whole mortgage, usually 25. Do not confuse it with the term, which is the length of the current contract, for example 5 years.

Updated October 22, 2026

Since December 15, 2024, first-time buyers and buyers of new construction can amortize an insured loan over 30 years. A longer amortization lowers the monthly payment but raises total interest paid; it is an access tool, not a saving.

At renewal you can shorten the amortization if your income has grown, or make prepayments within the contract's privileges (often 10% to 20% of principal per year without penalty).

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