• You have five main options to choose when getting a Canadian mortgage.house image by Earl Robbins from Fotolia.com
  
  When applying for a mortgage from a Canadian bank, there are five main options you can decide on: the amortization period, mortgage term, type of interest rate, payment frequency and size of down payment. Each will affect the size of your mortgage payments and the amount of total interest you will pay over the course of the mortgage.
  
  

Amortization

• The amortization period of a mortgage is the length of time you are scheduled to completely repay the loan. Most mortgages are amortized over 25 years, though they may range from 5 to 35 years. A shorter amortization period means your payments will be higher, but you will pay less total interest.
  
  

Mortgage Term

• The term of the mortgage is how long the mortgage agreement with your financier will remain in effect. At the end of a mortgage term, you will either have to pay the remaining amount of the loan in full or renegotiate your mortgage at current market rates. Mortgage terms are usually between 6 months and 10 years.
  
  

Interest Rate

• You have the option of a fixed or variable interest rate when setting up a mortgage. This figure, expressed as a percentage, is the amount of your loan that will be added to your debt yearly. For instance, a mortgage of $100,000 at 5 percent interest will leave you with $105,000 of debt after interest has been applied.
  
  If you choose a variable-rate mortgage, the interest charged on your loan will vary with the prime lending rate set by the Bank of Canada. Variable rates are usually lower than fixed rates. A fixed-rate mortgage will not change for the duration of the mortgage term. They are usually one to five percent higher than the prime lending rate when the mortgage term begins. The advantage of a fixed-rate mortgage is that your payments will be the same each time you make them for the whole term.
  
  

Payment Frequency

• You also have the option of choosing how frequently you will make mortgage payments: weekly, every two weeks, twice a month or monthly. The total amount paid toward your mortgage over a year will be very similar no matter which option you choose. Some banks offer the option of accelerating bi-weekly payments, which will move up the payment schedule slightly to include two extra payments. Using bi-weekly payments also reduces the total interest you will pay.
  
  

Down Payment

• The down payment is the last of the options you have when getting a mortgage from a Canadian bank. The amount is most often expressed as a percentage of the house's cost. The larger the down payment, the less money you have to borrow through the mortgage. Larger down payments also generally earn you more favorable terms on your mortgage, such as lower interest rates.