|30-year mortgage amortizations are taking over: Four reasons why
Once upon a time, 25 years was the standard amortization on a Canadian mortgage.
Today, no less than 63 per cent of new low-ratio mortgages by value, have amortizations over 25 years. That’s a surge of 11 percentage points in just two years.
Meanwhile, six in 10 Canadians consider longer amortization periods “bad debt practice,” according to a recent survey by Manulife Bank.
The maximum amortization for a mortgage in this country is generally 35 years, although some non-prime lenders will do 40 years.
So why are so many people extending their amortization when the majority deem it inadvisable?
Best fixed rates are as low as *2.84 – 3.49 % for a 5 year fixed,
*High Ratio/Quick Close Specials
If you are in the market for a home, book an appointment today to see how the recent regulatory changes by the Office of Superintendent of Financial Institutions will affect your purchase.
**rates subject to change with market conditions – *OAC **conditions apply E. & O. E.
|**Please note that rates shown above are subject to change without notice. The rates shown are posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.”|