Extending Amortization at Renewal to Lower Your Payment Extending Amortization at Renewal to Lower Your Payment

At renewal you can usually reset amortization — back to 25 years, or 30 on uninsured files — cutting the monthly payment at the cost of lifetime interest.

Example

On a $450,000 balance at 5%, moving from 20 to 25 years remaining cuts the payment roughly 10% — while adding tens of thousands in lifetime interest if you never prepay.

Rules

• Extending amortization = a refinance-style change: expect re-qualification under the stress test.
• Insured (CMHC) files cap at 25 years; 30-year amortization needs 20%+ equity.

Pair this with the charter protections in First Renewal Payment Shock.

Model the payment first: Affordability Requalification Calculator.

Full hub: Best Mortgage Renewal Rates.