35 Year Amortization

When securing a mortgage you're able to choose the number of years that you wish to have the mortgage loan amortized over.    With each mortgage payment, a portion of the payment is directed towards paying down the principal amount and the other payment is applied towards the interest on the loan.  

A typical amortization period for a mortgage is 25 years.   As home prices increased in the 2,000's the Canadian Government increased the amortization periods to 30, 35 and 40 years.   With Government concerns regarding record levels of debt they clawed back these limits to 25 years for Government backed high ratio mortgages (downpayment < 20%) and 30 years for conventional mortgages (down payment > 20%).       

Nevertheless, with interest rates near historic lows many are hoping to extend the length of their mortgage in order to be able to direct more funds towards paying down credit card or line of credit debt or to invest funds in other revenue generating vehicles such as ETFs, Mutual Funds, stocks or bonds. 

The solution:  a 35 Year Amortization Mortgage.    Unlike banks, the broker channel is able to offer this unique product.   This enables you to qualify for the largest mortgage amount possible or to arrange for the lowest monthly payment possible.    

Give me, Michael Pezzack, a call (416-850-2642) and let's discuss your unique situation.   Or, complete the FREE Mortgage Evaluation Form to the right of this page and I'll respond to you shortly.   







 

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