Mortgages can be paid off in as little as 10 years but most first-time buyers take on a 30-year term to keep payments lower. However, that longer amortization period means more interest is paid to the lender.

Choosing The Right Mortgage Term

Alternative Lending Ottawa are many factors to consider when selecting a mortgage repayment time frame. Mortgage brokers can help clients understand the different options and choose a mortgage that suits their lifestyles, financial goals and personal homeownership plans.

Shannon Mayhew, a mortgage broker at West Coast Broker in Vancouver, says that first-time homebuyers should look at their own individual circumstances and future plans to determine the best mortgage term for them. If you are thinking of moving or changing jobs in the near future, for example, you might want a shorter term mortgage or one that is portable or can be transferred to a new property.

Other considerations include whether you prefer to pay a fixed rate or variable one and what the mortgage terms are for renewing or prepaying. Having an early conversation with a Mortgage Specialist can make the process of finding the right mortgage term easier and help you avoid costly mistakes in the long run.

“It is important to shop for mortgage features as much as the rate,” says McLister. “Look for things like flexible portability, fair prepayment penalties and a linked line of credit.” Talk to an expert and do your homework before you start shopping for a mortgage.