What Is Mortgage Amortization in Canada?
The total period over which a mortgage is repaid. In Canada, CMHC-insured mortgages are limited to 25 years; uninsured first-time buyer mortgages may extend to 30 years.
Definition
Amortization is the total length of time it takes to fully pay off a mortgage through regular payments. In Canada, the rules differ depending on whether a mortgage is CMHC-insured. Insured (high-ratio) mortgages are limited to a maximum amortization of 25 years. As of 2026, uninsured mortgages for first-time buyers purchasing new builds can extend to 30 years, providing lower monthly payments but significantly more total interest paid over the life of the loan. The most common amortization periods in Canada are 20 and 25 years. Note that within the full amortization there are shorter terms (typically 1 to 5 years) at which point you renew at prevailing rates. Most Canadians renew their mortgage 4 to 8 times over a 25-year amortization.
Formula
Example
On a $500,000 mortgage at 5% with 25-year amortization: monthly payment = approximately $2,923. With 30-year amortization: approximately $2,684. The longer term saves $239/month but costs about $57,000 more in total interest.