Longer timelines, smaller payments — but what’s the real cost of stretching your mortgage?

With affordability still top-of-mind, more Canadian borrowers are turning to extended amortizations — often 30 years or more — to reduce monthly mortgage payments and squeeze into rising qualification limits.

New figures from industry lenders and broker channels show a notable rise in 30‑ to 35‑year amortizations, particularly among first-time buyers, variable-rate mortgage holders, and anyone facing mortgage renewal with tighter cash flow.

“We’ve seen a 12% increase in 30+ year amortizations this year alone,” said a national mortgage advisor. “It’s becoming a pressure valve for borrowers trying to stay afloat.”

Why It’s Happening

Several key trends are pushing Canadians toward longer mortgage timelines:

High interest rates are inflating monthly payments
Stress test rules are limiting what people qualify for at 25 years
Renewing borrowers are extending amortization to avoid payment shock
New buyers want to improve monthly affordability — even at a long-term cost

And while 30+ year amortizations are mostly available on uninsured mortgages (those with 20%+ down), some lenders are also offering them on switch or refinance scenarios — often with B-lenders or credit unions.

Is It Worth It?

Stretching your amortization lowers your monthly payment — but increases your total interest paid over the life of the loan. For example:

A $600K mortgage at 5% over 25 years: ~$3,500/month
Same mortgage over 35 years: ~$3,050/month
But you pay tens of thousands more in total interest

That trade-off might be worth it for cash-strapped buyers or those planning to refinance or sell in a few years. But for long-term homeowners, it could mean slower equity growth and more money to the lender.

📋 Pros and Cons of Extended Amortizations (30+ Years)

✅ Pro: Lower Monthly Payments
Spreads your loan over more years, reducing monthly pressure — often by $300–$500/month.
✅ Pro: Easier to Qualify
Helps meet mortgage stress test and debt-to-income limits, especially on higher-priced homes.
❌ Con: More Interest Over Time
You’ll pay significantly more in total interest over the life of the loan.
❌ Con: Slower Equity Build
With smaller principal payments, it takes longer to build home equity.
❌ Con: Not Always Available
Most lenders only offer 30+ year amortizations on uninsured or alternative (B-lender) mortgages.

Extended amortizations can relieve short-term pressure — but make sure the long-term math still works for your goals.

📌 Talk to a Mortgage Expert

Considering a longer amortization to lower your payments? We’ll help you weigh the short-term relief against long-term costs — and find the right balance for your budget.

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