Nearly 70% of Canadians own their homes, yet over half of Canadians don’t even know what amortization is. That’s fairly concerning, and it raises the question: should mortgage borrowers ask more questions, or should mortgage lenders educate borrowers more?
As a mortgage borrower, it is your responsibility to ensure you perfectly understand the loan you are taking on, so ask as many questions as you need/want to (there are never too many).
A recent survey by BMO Economics, polled Canadians on their familiarity with the term ‘amortization’, 52% weren’t even ‘somewhat familiar’ with the word.
So what is amortization? Most simply put, it is the length of your mortgage term.
If you have questions about mortgages or amortization, please feel free to contact us.