What is the most common Canadian mortgage repayment term and amortization period?

The most common mortgage repayment term in Canada is indeed a five-year term paired with a 25-year amortization period. This structure is prevalent because it strikes a balance between manageable monthly payments and the frequency of renewing or refinancing the mortgage.

A five-year term allows homeowners to lock in their interest rate for a period that is long enough to provide stability, but not so long that they miss out on potential lower rates in the future. If interest rates decline, homeowners can choose to refinance at the end of the term.

The 25-year amortization period is also standard in Canada, as it enables higher borrowing capacity with relatively lower monthly payments, making homeownership more accessible for many individuals. While some borrowers may opt for shorter or longer periods, 25 years provides a practical balance that works for a wide range of households.

In contrast, the other options generally do not reflect the most common practice in the Canadian mortgage market. Shorter terms, like one or two years, may benefit some borrowers looking for short-term flexibility, but they are less common for the majority. Ten-year terms, while they provide stability, are not as frequently chosen because they increase the risk of being locked into higher rates for a longer period in a fluctuating market