Can i change my amortization period

An amortization period, however, is going to be on the longer side, ranging from 10 years to 25 years. If you need mortgage insurance, then the longest amortization period available to you is 25 years. If you have anywhere from a five per cent to a We will also assume a 5. All examples are calculated using terms of 5 years at a time.

Please note that if you choose a variable rate mortgage , your interest rate will likely change throughout the term of your mortgage. As you can see in the example, the difference between a 5-year amortization period and a year amortization period is significant.

A mortgage broker will review your financial situation with you and help you decide which option is best suited to your unique situation and needs. We are here to help you find the best mortgage to suit your needs. Skip to content. Posted on August 30, Josh Higgelke Uncategorized. The Key Differences Between Short and Long Amortizations There are several key differences between short amortization periods 10 or 15 years and long amortization periods 25 or 30 years that you should consider when choosing the mortgage amortization period for you.

Short Amortizations One of the main benefits of having a shorter amortization period is that you spend less time paying down your mortgage, so you are mortgage free faster. Long Amortizations The main benefit of choosing a mortgage with a longer amortization period is lower monthly mortgage payments. Shortening Your Amortization Period If a longer amortization period makes the most sense for you when you first purchase your home, but your financial situation changes, you can always shorten your amortization.

What You Need to Know. Are year Insured Amortizations Coming Back? It makes good financial sense to re-evaluate your amortization every time you renew your mortgage. We also offer a breadth of mortgage features designed to help you pay down your mortgage and build your home equity faster.

Lock your rate and know exactly how much home you can afford. Search RBC. Personal Banking. Contact Us Location. Then your new lender will pay out your mortgage with your old lender, and issue you a new mortgage with them.

These situations include:. Renewing Switching Providers When your mortgage term comes up for renewal, you have several decisions to make — one of the most important being whether you want to stay with your current lender, or switch providers and take your mortgage to a new lender.

To obtain a lower mortgage rate If another lender can offer you a lower mortgage rate than what your current mortgage provider has, switching would save you from having to pay potentially thousands of dollars in interest charges. Note : You can not change your mortgage amount or amortization period when switching providers.