Today we’re going to talk about the CMHC mortgage rule changes which were announced yesterday.
The first item on the list was amortization periods. For higher ratio mortgages the maximum amortization you use to be able to get 35 years mortgages, and now they are going to limit down to 30 year mortgages.
So we thought we’d break this down for you guys and let you know what does this difference really added up to. If you think about a $275,000 mortgage, just a nice small mortgage amount, the difference between a 30 and a 35 year amortization is almost $100 dollars more per month on your mortgage payments.
BUT there is a good side to this! Now you are going to be able to pay off you mortgage 5 years sooner and you will end up paying less interest on your debts. So the shorter your amortization the more principle of your mortgage you are paying off.
So if this is still confusing to you, when these changes are coming into effect, or if you can do something to avoid these rule changes or how to plan for it in the future contact us today at 1-866-521-9557 or at firstname.lastname@example.org! Stay tuned next time as we talk more about the new CMHC rule changes.