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Types of mortgages

Mortgage term

Français : Terme hypothécaire

Duration during which the rate and conditions of a mortgage are fixed. Not to be confused with the amortization period. In Canada, the most common terms are 1, 2, 3, and 5 years.

Definition

The mortgage term is the duration during which your interest rate and contractual conditions are locked. At term maturity, you must renew (or transfer) your mortgage — potentially at a different rate.

The term is distinct from the **amortization period**: amortization is the total planned duration to repay the full loan (e.g., 25 or 30 years), while the term is the rate revision 'cycle' (e.g., 5 years). On a 25-year mortgage, you typically renew the term 5 times if all terms are 5 years.

In Canada, the most common terms are 1, 2, 3, and 5 years. The 5-year fixed term has historically been the most popular in Quebec and Canada. Longer terms (6–10 years) exist but are less common. Short terms (6 months, 1 year) are often chosen when a rate drop or change in situation is anticipated.

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This definition is provided for informational purposes only and does not constitute legal, tax, or financial advice. For a personal situation, consult an AMF-licensed mortgage broker, notary, accountant, or the relevant financial institution.