Amortisation Period

The amortisation period is the time frame during which a buyer is expected to pay off a loan and its interest. Payments are made in regular intervals over the term, with either a fixed or adjustable interest applied to each payment. Many loans offer an early or additional repayment option, wherein you pay a larger amount than required to reduce your amortisation period and interest. The amortisation period usually applies to home loans, which typically have terms from 15 to 30 years, but may also be used for shorter term personal loans.