Term vs Amortization

Two different time horizons that get conflated constantly. Your term is the contract length: typically 5 years, sometimes 1 to 10. At the end of the term, you renew the mortgage (sign a new term with the same lender) or switch to another lender. The rate you see quoted (“a 5-year fixed at 4.79%”) is the rate for the term, not the rate for the entire amortization.

Your amortization is the total payoff period: typically 25 to 30 years. The amortization spans multiple terms. Most Canadians will renew their mortgage 4 to 6 times before the amortization ends.

Why this matters: every renewal is a chance to restructure (switch to a readvanceable mortgage, consolidate debt, extend amortization for cash flow). The Renewal Decision Engine compares the five paths every renewal opens up.