Opening Story
When Alex bought his 8-unit rental plex in Calgary’s Bridgeland area, he expected to squeeze by on a tight monthly budget until rents caught up. Then his mortgage broker suggested something unusual: a 50-year amortization.
At first, it sounded absurd, why commit to paying a mortgage until you’re old enough to forget where you put your keys? But when Alex saw the math, it clicked.
The Cash Flow Shift
With a $1.8 million mortgage at 4.5% interest:
25-Year Term: $9,968/month
50-Year Term: $7,566/month
That’s $2,402 back in his pocket every single month, money he could use for unit renovations, marketing, or even a reserve fund.
Why It Works for Multi-Family
In the rental business, cash flow is king. Lowering your debt service:
Helps cover vacancies without panic
Funds capital improvements that attract better tenants
Reduces the risk of falling behind during slow rental markets
But Here’s the Catch
You will pay more interest, a lot more. On Alex’s mortgage:
25-Year Total Interest: ≈ $1.1M
50-Year Total Interest: ≈ $2.3M
That’s a $1.2 million premium for the privilege of lower payments.
When to Say Yes
Ultra-long amortization works best if:
You plan to refinance or sell before the term ends
You value liquidity and flexibility more than total interest savings
Your building is in a strong rental market like Calgary, where property values tend to appreciate
Alex’s Takeaway
“It’s not about paying off the mortgage faster,” Alex says. “It’s about keeping the building running smoothly and making sure my tenants are happy. The debt can wait, cash flow can’t.”
