Being a mom has shaped the way I do everything...not just at home but in my work, as well. It has helped me understand the depths of commitment that my clients have to their families. As a mortgage specialist, I have the privilege of helping people achieve their dreams for their families. I'm so grateful to be able to offer people the advise and information they need to make reaching their goals as simple as possible. My purpose with this blog is to provide tools that will help new or current homeowners reach whatever goals they have set for themselves. If you have ideas you'd like to hear about, let me know.

Tuesday, 13 March 2012

Understanding Mortgage Amortization

Dian - Account Manager

In its simplest term, amortization is the period of time that it takes you to pay off your mortgage in its entirety. Typically, your average amortization period is 25 years. However, it all depends on your personal goals and objectives.

Choosing a longer amortization period gives you the convenience of having lower monthly payments. However, the longer your amortization, the more you will pay in interest costs.

Alternatively, a shorter amortization gives you the convenience of paying off your mortgage a lot earlier. However, your payments are going to be larger but you will save in interest expenses.

Even if you have to start with a longer amortization period so that it fits into your budget, you have the opportunity of changing your amortization period throughout the lifetime of your mortgage. We recommend that you review your amortization at your renewal time so that you can assess your current financial situation. If your situation has changed such as your salary has increased or your expenses have lessened, then shortening your amortization period may fit into your goals.

Here at RBC we'll help you explore your options and find the best possible solution for you.

For more information please visit the RBC Advice Centre.
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