Ontario mortgage help
25-year vs. 30-year mortgage amortization
A 30-year amortization usually lowers the scheduled payment but repays principal more slowly and increases total interest when the rate and mortgage amount are otherwise the same.
What to do first
Calculate both payments using the same mortgage amount, interest rate, and payment frequency.
Compare interest and remaining principal after the same period—not only the initial payment.
Confirm whether the mortgage is insured and whether the borrower or property qualifies for a 30-year insured amortization.
Review whether prepayment privileges could provide flexibility while preserving a manageable required payment.
Important considerations
Eligibility depends on the mortgageFor an insured mortgage below 20% down, FCAC states that 30 years is available to a first-time buyer and/or a purchaser of a new build; otherwise the maximum is generally 25 years.
A lower payment is not a lower priceStretching repayment over more years generally increases interest and leaves more principal outstanding at comparable future dates.
More than 20% down is differentFor uninsured mortgages, the lender sets its permitted maximum amortization and qualification policy.