The 35 Year Amortization Advantage

By now you all should know about the mortgage rule changes which will happen next week – one of which is the end of 35 year high ratio amortizations.  What this means is that if you have a small down payment, you will have to make a monthly payment which will be higher and in the long run you would end up paying off your mortgage in full by 30 years, not 35.

There are definite pros and cons to taking a longer amortization period – but for those of you with at least 20% down payment or equity in your property, a 35 year amortization is still available if you know where to look!

I bring this up because BMO, Laurentian Bank, Scotiabank and TD have all confirmed they will end the 35 year amortization on both high AND low-ratio mortgages after 18th March…this may adversely affect you if you are looking for the advantage to control your monthly payments, have a better cash-flow, setup your mortgage so you have more flexibility and options available to yourself in the future.

It’s worth a chat with your mortgage broker and we can see if it’s a benefit to your financial strategy. Give us a call today! 1-866-521-4536

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