One of Mortgage Broker City's competitive advantages is that we have access to lenders who offer extended amortizations up to 40 years for conventional mortgages.
Amortization is the total length of time it takes to pay back the principal mortgage amount in full. Traditionally in Canada mortgages are arranged with a standard 25 year amortization, but may be as high as 30 or 40 years for some lenders.
For a mortgage of $200,000.00 at an interest rate of 4.75%, amortized over 25 years, your monthly payment is approximately $1,134.00.
Increasing the amortization to 30 years lowers the payment to $1,038.00
Increasing your amortization from 25 years to 30 years saves you $96.00 in monthly mortgage payments. Try using this savings to make RRSP or RESP contributions, or pay down higher interest debts, such as credit cards or loans.