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Glossary term
Amortization vs Term (mortgage)
Amortization is the full payoff period of a mortgage (typically 25-30 years). The term is how long your current contract and rate last (typically 1-5 years), after which you renew at a new rate. Insured mortgages in Canada cap amortization at 25 years (new exceptions for first-time buyers — 30). Longer amortization = lower payment but more total interest.
Related terms
TFSA
Canadian registered account where investments grow tax-free and withdrawals are tax-free. 2026 limit: $7,000/…
RRSP
Tax-deferred retirement account: contributions deduct from income, grow tax-free until withdrawal. 2026 limit…
FHSA
Hybrid TFSA+RRSP for first home purchase. $8,000/year limit, $40,000 lifetime. Contributions deduct from inco…
RESP
Tax-deferred education savings account. Government adds CESG (20% match up to $500/year, $7,200 lifetime). $5…
CESG
Free government grant inside RESP: 20% match on contributions, $500/year max, $7,200 lifetime per child. 'Gua…
HBP
Borrow up to $60,000 from your RRSP for first home purchase tax-free. Repay over 15 years starting year 2 aft…
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