The defined period during which a specific mortgage contract – including the interest rate, lender, and payment terms is in effect.
At the end of the term, the outstanding balance must be renewed, refinanced, or paid in full.
Canadian mortgage terms typically range from 6 months to 10 years, with 5-year terms being the most common.
At renewal, borrowers renegotiate their rate with the same or a different lender. The term is not the same as the amortization period.
Synonyms:
renewal term|mortgage renewal