May 6, 20263 min read
If you are planning a purchase, understanding this topic before you submit an application can prevent surprises. Mortgage term is the length of your current contract, not the number of years it will take to pay off the mortgage. The right term depends on how long you want today's rate and rules to remain in place.
Key points to understand
Here is what matters most:
- Short terms create more frequent renewal points and can offer flexibility when your plans are changing.
- Longer terms provide more payment certainty but can expose you to a larger cost if you need to break the contract.
- Think about likely events such as moving, maternity or parental leave, retirement, renovation financing or income changes.
- Compare prepayment privileges and portability because those features can matter as much as term length.
Match the mortgage term to the next likely chapter of your financial life.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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