Amortization period is the length of time it takes to pay off a mortgage, including interest. It may be between 5 and 30 years, depending on how much you can afford to pay. For a new mortgage, the amortization period is usually 25 years.
If you want to pay down your mortgage faster, you can shorten your amortization period and make higher monthly mortgage payments. You can negotiate an amortization as short as 5 years.
If you want smaller monthly mortgage payments, you can increase the amortization period to 30 years maximum. But for high-ratio mortgages, the amortization period is 25 years maximum.
Amortization period differs from mortgage term, which is the length of the contract with your lender. When a term ends, you either pay off your mortgage or renew it if your lender agrees. Terms range from 1 to 10 years, although 4- to 5-year terms are most common.