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Amortization Period is defined as the number of fixed payments or years it takes to repay the entire amount of the mortgage loan. In Canada, this is typically 25 years. The amortization period is NOT the same as the mortgage "term" which is defined as the actual length of time for which the money is loaned, at that particular rate of interest.
After the term expires, you can either repay the balance of the principal then owing or renegotiate the mortgage at current rates and conditions. Typical mortgage terms are 1 year, 3 year, and 5 year. |
