25 year / 30 year

When choosing between a 25 year and 30 year amortization.....

It IS true that a 25 year amortization will save on total interest costs -- there is another important factor worth considering: flexibility

A 30 year amortization gives you lowest obligated repayments — which can provide valuable breathing room during life’s moments (examples: illness, job loss, parental leave, family expansion, taking time off to travel).

The advantage in these moments is that you are not locked into a higher repayment.

You can always choose to pay extra and effectively mimic a 25 year repayment schedule using prepayment privileges. But if circumstances change, you still have the option to fall back to the lower obligated repayment.

Critically, without needing to requalify or pay a penalty to refinance their mortgage.

In many cases, clients take the 30 year amortization — while committing to payments on the 25 year schedule whenever possible.

It creates a balance between financial discipline and financial flexibility. The reality is that life changes. A mortgage strategy that gives you options can sometimes be more valuable than simply minimizing interest costs alone.