NEW: Moving Day: January 2026 Industry Hires And Promotions

Amortization

Explore amortization in Canadian real estate, how it affects mortgage repayment, interest costs, and homeownership planning.

Amortization
Escrow – Definition, Meaning, and Examples in Canadian Real Estate

May 22, 2025


What is Amortization?

Amortization refers to the process of gradually repaying a mortgage through regular payments over a fixed period of time.

Why Amortization Matters in Real Estate

In Canadian real estate, the amortization period determines the length of time it will take to fully pay off a mortgage. It impacts the size of monthly payments and total interest paid over the life of the loan.

Typical amortization periods:

  • 25 years for insured mortgages
  • Up to 30 years for uninsured mortgages

Amortization is distinct from the mortgage term, which defines the current contract period. The mortgage is typically renewed multiple times within the amortization schedule.

Understanding amortization helps buyers compare mortgage options and manage long-term affordability.

Example of Amortization

A homeowner selects a 25-year amortization and a 5-year term. They will renew the mortgage several times until the full loan is repaid.

Key Takeaways

  • Total time to repay a mortgage in full.
  • Affects monthly payment size and total interest.
  • Different from mortgage term.
  • Can be extended or shortened with refinancing.
  • Crucial for long-term budget planning.

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Peterson Ups Burnaby Blake Village Project To 5,250 Units As Site Prep Begins

Peterson Ups Burnaby Blake Village Project To 5,250 Units As Site Prep Begins

A rendering of the public space planned for Blake Village. (Peterson)

After a few starts, stops, and a complex legal proceeding, Peterson is turning the page and starting a new chapter at its Burnaby Lake Village master-planned community, beginning with the name: the project has been rebranded as Blake Village.

The project is set for the 19-acre site at 6800 Lougheed Highway, directly adjacent to the Millennium Line SkyTrain’s Sperling-Burnaby Lake Station. The property was formerly home to an industrial facility occupied by Saputo before it was sold to Peterson and Create Properties in 2018 for $209 million.

Keep ReadingShow less

Rental Proving An Anchor In Canadian Real Estate For 2026

Rental Proving An Anchor In Canadian Real Estate For 2026

TELUS Living Nanaimo (Omicron)

Canada’s rental housing market may not always grab snappy headlines, but it’s quietly proving its staying power.

Across the country, large-scale organizations are putting capital into purpose-built rental housing, whether through acquisitions, repurposed properties, or REIT activity. The trend is less about flashy growth and more about steady, strategic investment — a trend that’s already shaping 2026.

Keep ReadingShow less

Eric Lombardi 'More Than Likely' To Cement Run For Ontario Liberal Party Leader: Q&A

Eric Lombardi 'More Than Likely' To Cement Run For Ontario Liberal Party Leader: Q&A

31-year-old Lombardi feels there is "an appetite for generational change" in politics, and that young people should be leading the charge.

Ontario entered 2026 with the weakest housing conditions in the country, and Eric Lombardi believes that we can do better.

The 31-one-year old civic advocate is in the process of exploring a run for Ontario Liberal Leader, a slot that opened up after Bonnie Crombie announced her resignation in mid-January. The Party has said an election will be held in November.

Keep ReadingShow less

City Council Advances 3 Projects Under ‘Toronto Builds’ Framework

City Council Advances 3 Projects Under ‘Toronto Builds’ Framework

Rendering of 9 Shortt Street/CreateTO, Montgomery Sisam

Toronto City Council approved zoning for about a dozen housing projects at its February session — held last week — and of those, three will be rolled out under the new Toronto Builds policy framework.

Toronto Builds, approved in May 2025, consolidates the eligibility criteria and requirements of Housing Now, ModernTO, and the parking-to-homes and public developer initiatives. A CreateTO progress update from July identified 36 sites that will be developed under the unified framework, including the three that have just been green-lit by Council.

Keep ReadingShow less

Home Relocation Project Brings 17 Affordable Rentals To Sunshine Coast's shíshálh Nation

Home Relocation Project Brings 17 Affordable Rentals To Sunshine Coast's shíshálh Nation

Renewal Development

Via Renewal Development and Wesgroup, 17 affordable rental homes are now in the hands of the shíshálh Nation — marking the completion of a project that addresses the community’s housing needs while creating local opportunities.

Like many communities across British Columbia, the shíshálh Nation has been facing a housing crisis. This project tackles that issue head-on while supporting local economic development: roughly 70% of its construction work was carried out by shíshálh Nation entrepreneurs, providing jobs and skills training within the community.

Keep ReadingShow less

Build Canada Homes Pulls From Public, Private Sectors For Exec Team

Build Canada Homes Pulls From Public, Private Sectors For Exec Team

Valesa Faria (left) and Jeffery Coles (right) have joined the Build Canada Homes executive leadership team.

The economy may be acclimating to tariffs and interest rate pain has eased (for now), but Canadian housing remains sorely in crisis. Against that backdrop, Build Canada Homes (BCH) has its work cut out for it, and the agency is forging ahead with the appointments of Valesa Faria and Jeffery Coles to its executive leadership team.

While Faria will be stepping into the Senior Vice President of Partnership and Development role later this month, Coles assumed the Senior Vice President of Investments post in January.

Keep ReadingShow less

Hudson's Bay Left Behind 15 Million Sq. Ft Of Space. What Happens To It Now?

Hudson's Bay Left Behind 15 Million Sq. Ft Of Space. What Happens To It Now?

The closed Hudson’s Bay store in the Metrpolis at Metrotown shopping centre in Burnaby, BC. (Howard Chai)

We’re closing in on almost a year since the Hudson’s Bay Company (HBC) filed for creditor protection. Liquidating the company’s assets and closing all of its stores was the easy part — and has mostly been completed already. The hard part is determining what to do with the huge blocks of vacant space left in the company’s wake.

Across Canada, HBC operated a total of 96 stores, including not just the traditional Hudson’s Bay stores, but also a handful of stores under the Saks Fifth Avenue and Saks OFF 5TH brands.

Keep ReadingShow less

GTA Home Sales, Prices Expected To Hold Steady In 2026: TRREB

GTA Home Sales, Prices Expected To Hold Steady In 2026: TRREB

Shutterstock

After years of volatility, the GTA housing market is entering a holding pattern.

That’s the takeaway from the Toronto Regional Real Estate Board’s 2026 Market Outlook and Year in Review, which forecasts relatively stable home sales and prices this year, as improved buyer choice and affordability continue to be weighed down by cautious consumer sentiment.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
All rights reserved SiteMedia © 2026.