The federal government is considering a return of the 30-year amortization for insured mortgages, up from the 25-year limit now. This is great news for millennial first-time buyers who are having trouble entering the market with less than 20% down. These young Canadians are giving politicians an earful and with the upcoming election it would be smart to listen. These first-time buyers have most of their working years ahead of them, making it likely they will pay off the mortgage sooner than 30-years.
To put this in perspective, extending from a 25-year to a 30-year amortization can lower monthly payments by $250+ on a $500,000 mortgage amount, with only 5% down. While nothing has been confirmed yet, the Finance Minister Bill Morneau’s coming budget might shed some light on these potential policy options.
If you are looking to enter the housing market and want to get pre-approved, contact The Mortgage Centre KW today!