News from Canada's Mortgage Experts
Category: The Facts Your Bank Won't Tell You
Can you still secure a 35 or 40 year amortization?
Wednesday, March 30, 2011
Posted by: Steve Parks
Watch this week’s video blog on amortization schedules to help you understand what mortgage products are still available to you from over 50 lenders amidst the mortgage rule changes that took effect on March 18, 2011.
With mortgage rules changing, chartered banks are no longer able to provide amortizations greater than 30 years. It is important for you to know that even if the chartered banks can’t offer longer amortizations, many other lenders can offer amortizations of 35-40 years on a conventional mortgage (N.B. you require a minimum 20% equity in your home). This type of mortgage product is available when purchasing a new home or refinancing your current property.
Although interest rate continues to be a key factor to your mortgage strategy; in many cases so is monthly cash flow. So remember, with a 35 or 40 year amortization your monthly mortgage payments will be lower than if you went with a traditional 25 year amortization, and your monthly cash flow will increase. Remember everyone has different mortgage requirements at different points in their lives so don’t be fooled into accepting a mortgage strategy that is right option for your bank but not for you.
If you have any questions, comments or would like to share your thoughts about the mortgage rule changes, email us at info@monstermortgage.ca.
Comments:
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Margaret
Written on Thu. May 17th, 2012. 08:30PM
#1 and #2 don't affect us in the least, hvewoer, I am very curious what the effects of #3 will be. The Government will withdraw its insurance backing on home equity lines of credit I best contact our bank to make sure I know what is going on with this one. We have a HELOC for our Smith Manoeuvre and potentially a small business opportunity. I hope these plans are kaputz due to this change .
