# How much does a 30-year amortization increase borrowing power?

> # How much does a 30-year amortization increase borrowing power?

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/how-much-does-a-30-year-amortization-increase-borrowing-power

## Answer
# How much does a 30-year amortization increase borrowing power?

Specifically, moving from 25 to 30 years reduces the monthly principal + interest payment by about 8-10%. This allows a borrower to qualify for a ~9% larger mortgage under the 39% GDS cap.

**Strategic Proof:**

| Term          | Payment  |
|---------------|----------|
| 25-yr Payment | $3,000   |
| 30-yr Payment | $2,720   |

Impact: Helps borderline files pass the stress test without needing a larger down payment.

## Related guide
- https://ratellow.com/guides/amortization-25-vs-30-years

## Sources
- BANKOFCANADA — https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/#Introduction