What makes the mortgage amortization period and the mortgage term different?


The mortgage amortization period is the amount of time it would take to pay off a mortgage, including interest. It may be between 5 and 30 years, for a new mortgage, the amortization period is typically 25 years.

The mortgage term is the amount of time that you commit to your mortgage rate, details and conditions with a lender according to your contract. Once the term ends, you either pay off the mortgage or renew it for a new term if your lender agrees. Terms range from 1 to 10 years, but the average terms are between 4- to 5-years.