The Amortization Period is the total length of time required to pay off your mortgage. Most mortgages in Canada are amortized over 25 years to 40 years. Depending on the terms of your mortgage, there may be several ways that you can reduce your amortization period. These include:- Increasing the amount you pay each month.
- Making payments more frequently (for example, bi-weekly rather than monthly).
- Making extra payments periodically, for example, if you receive a tax refund you might want to apply this to your mortgage in order to pay off your mortgage sooner.
The shorter your amortization period, the less interest you will pay in total.
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