A mortgage term is the time period which the mortgage agreement is in effect. Mortgage terms can range from 6 months and up to 10 years. The mortgage term is set at the time of the approval of the mortgage. The mortgage term shouldn’t be confused with the amortization period of the mortgage, as the mortgage term is usually 5 years whereas the amortization period can be 25 year to 35 years.
At the time of the mortgage approval, a borrower should determine how long of a mortgage term they would like to take, as there is usually a penalty for repaying a mortgage by refinancing or selling their property in the middle of the term of the mortgage.