Mortgage term
A mortgage term is the period during which the current mortgage contract and its interest rate apply, commonly one to five years. It is different from the amortization period, which is the total time it would take to repay the loan in full. At the end of the term, the borrower renews, refinances or repays.
How BC law treats it
Maximum amortization periods for insured mortgages come from federal mortgage insurance rules, not BC law. For mortgage terms over five years, the federal Interest Act, s. 10 gives borrowers a right to prepay after five years on payment of three months' interest, but s. 10(2) excludes mortgages given by corporations.
What it means for your business
Plan for renewal risk: when the term ends, the lender can offer a new rate or decline to renew.
Risks and common mistakes
Treating the term as the repayment period can leave a business unprepared for a renewal at a much higher rate.
For the full explanation, see our entry on Mortgage.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
