Term and amortization deal with two very different time frames.
The term is the amount of time that your mortgage agreement and interest rate are in effect. The term may range from 6 months to 10 years. At the end of your term, the remaining balance will need to be renewed, renegotiated or paid in full. Often your lender will offer to renew your mortgage when the term is up at whatever the current market interest rate is. However, there are some instances when a lender may choose not to renew a mortgage. If anything about the borrower’s financial situation has changed for the worse and causes concern for your lender (such as increased debt levels, loss of employment) or if payments have not been made on time, the lender may choose not to renew your mortgage.
The amortization period is the amount of time it will take to pay off the entire mortgage, making regular payments at a certain interest rate. A longer amortization period means you will pay lower mortgage payments, but will pay more interest over the life of the mortgage. Typically amortization periods are 15, 20 or 25 years. It is a good idea to take the shortest amortization period that you can afford, as it will save you a significant amount of money in interest.