Mortgage Brokers Mortgage Information for Ontario, Canada | Page 7

Things To Consider When Applying For
A Mortgage In Ontario, Canada
The Mortgage Period and Amortization
o Prospective home buyers are often confused about the two terms. The mortgage period refers
to the time period that you are committed to the mortgage rate, the terms and conditions of
the mortgagee. The mortgage amortization refers to the time you take to pay for the whole
mortgage. In Canada, most mortgages have a 5-year term and a 25 year amortization period.
You are required to pay a down payment of 20% for homes with more than $100000 in worth
and 5% for homes of lesser value. For homes with less than 20% worth of down payment, the
amortization period is 25 years and 35 years for homes with a higher value.
How To Determine Mortgage In Ontario
o You will have to consider a number of factors when computing the amount of mortgage and
monthly payments. Some of these factors vary across different provinces in Canada depending
on where you are acquiring your home. The factors that are applicable in the Canada include
the amortization period, minimum down payment, mortgage default insurance or the CMHC.
These parameters are fixed by the ministry to guard the buyers from the lenders and brokers.