The process of gradually paying off a mortgage through scheduled payments of principal and interest over a set period. In Canada, the maximum amortization period for an insured mortgage (with less than 20% down) is 25 years; buyers with 20% or more down can amortize up to 30 years with most lenders. Longer amortization periods lower monthly payments but significantly increase total interest paid over the life of the mortgage.
Synonyms:
amortization schedule|mortgage repayment schedule