25 vs 30 Year Mortgage Amortization in Canada: 2026 Rules, Costs & Eligibility
Direct answer
On a $500,000 mortgage at 5.25% with Canadian semi-annual compounding, a 30-year amortization lowers the monthly payment by about $236 versus 25 years, at a cost of about $94,000 more interest. Insured 30-year terms opened 15 December 2024 for first-time buyers and new-build purchases under the Department of Finance reforms.
Verified 2026-04-14
| Threshold | Rule | Source |
|---|---|---|
| 25 years | Standard insured amortization for resale purchases that are not first-time or new-build | Department of Finance reforms |
| 30 years | Insured amortization for first-time buyers and all new-build purchases from 15 December 2024 | Department of Finance reforms |
| $94,000 | Extra lifetime interest on $500,000 at 5.25% (Canadian semi-annual compounding, 30 vs 25 years) | Department of Finance reforms |
TL;DR
As of December 15, 2024, 30-year amortizations are available for insured mortgages taken out by first-time homebuyers across Canada.
Anyone purchasing a newly built home can also access a 30-year insured amortization, regardless of first-time buyer status — effective December 15, 2024.
Eligibility Split (December 15, 2024): The insured 30-year option applies if you are a first-time buyer OR purchasing new construction. Existing homeowners buying a resale property with less than 20% down remain capped at 25 years.
Expert Research FAQ
How much does a 30-year amortization increase borrowing power?
What are the current 2026 rules for insured 30-year amortizations?
Total Interest Cost Comparison
Can you switch from 30 back to 25 years at renewal?
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