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Amortization

The period over which a mortgage is scheduled to be fully paid off through regular payments of principal and [interest](/glossary/#interest-rate). In Canada, common amortization periods are 25 or 30 y

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The period over which a mortgage is scheduled to be fully paid off through regular payments of principal and interest. In Canada, common amortization periods are 25 or 30 years, though the mortgage term (when you renegotiate) is typically 1-5 years. A longer amortization lowers monthly payments, improving cash flow but increasing total interest paid.

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