# How should brokers position 1-2 year terms against 30-year amortizations?

> Frame them as 'Strategic Amortization Flexibility.' A 30-year schedule lowers the payment floor, but a 1-2 year term ensures the borrower isn't trapped in a high-interest contract if the market pivots.

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/how-should-brokers-position-1-2-year-terms-against-30-year-amortizations

## Answer
**Execution Steps:**
1. Qualify at 30-year floor for cash flow.
2. Lock 1-2 year fixed to preserve rate upside.
3. Schedule mandatory review at 18 months.

## Related guide
- https://ratellow.com/guides/short-term-fixed-renewal

## Sources
- BANKOFCANADA — https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/#Introduction
- OSFI-BSIF — https://www.osfi-bsif.gc.ca/en/news/backgrounder-final-capital-adequacy-requirements-guideline-2026