30 years becoming norm for paying down mortgage

Rising house prices are increasing demand for mortgages with 30 year amortizations as buyers choose – or are forced by the cost – to spread their home loan over longer periods. This is particularly evident in Vancouver and Toronto.

The Bank of Canada’s financial review for June shows that the proportion of loans of more than 25 years amortization climbed by 10 per cent between 2014 and 2015 to 46 per cent of uninsured mortgage loans.

Although the level of delinquent loans remains relatively low, the BoC report does highlight the impact that longer loan periods have on the overall level of household debt: “The resulting slower repayment of debt leads to a higher aggregate level of household indebtedness.”
 

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Market update:

Investment Hot Spots:
Cedar Camp, Saint-Antonin, Kerns, Kierstead Mountain, Hitchcock

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Poll

Have your investment plans changed for 2017?