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Latest News
Haventree Bank launches direct-to-consumer digital bank + MORE Jul 8th
The Schedule 1 bank is rolling out a new consumer deposit platform, marking a major move beyond broker-distributed mortgages and brokered deposits after more than three decades in the alternative lending space..... More »
Mortgage Digest: Younger homeowners lead the way in paying down mortgage debt Jan 26th
Younger Canadians are outpacing older demographics in reducing their mortgage debt, new research from Statistic Canada has found..... More »
New mortgage rules take effect today; more may be coming on Monday, economist says + MORE Dec 15th
Two sweeping mortgage reforms take effect today, December 15, targeting housing affordability and easing financial pressures—changes that may be followed by more announcements this week..... More »
Canadian home sales forecast downgraded—but the market may be turning a corner + MORE Jul 17th
For the second time this year, the Canadian Real Estate Association has downgraded its forecast for home sales in 2025, even as it says a turnaround could be looming following increased activity in June.
The association reported that the number of homes changing hands across the country in June r.... More »
Could a home-based business affect your mortgage? May 27th
Registering a business at your home may seem harmless, but it can raise questions for lenders, insurers and municipalities. Here’s what homeowners should know before using their home address for business purposes..... More »
Weekly Mortgage Digest: Why have lenders been hiking rates?
– canadianmortgagetrends.com
A weekly review of the latest mortgage and real estate news, a recap of key headlines, and a preview of upcoming economic releases.
Why Everyone Should Choose The Longest Amortization Possible
– canadamortgagenews.ca
One of the most common requests I get when discussing mortgage options with my clients is that they want the shortest amortization they can afford. They want to pay their mortgage off as soon as possible. I get it! And then I hit them with an unexpected recommendation. I tell them to take the longest amortization possible. Sounds contradictory? I’ll explain.
Let’s suppose you qualify and can afford a monthly payment of $3915 for a $500,000 mortgage amortized over 15 years. Should you choose a 15 year amortization? NO WAY!
There are 3 main reasons why…
1 – CHANGE OF FINANCIAL CIRCUMSTANCES OR JOB LOSS
Let’s suppose you run into some tough financial circumstances a year or two down the road. Maybe your spouse lost a job. You need to reduce that monthly payment to $3,000 to make ends meet. Well, guess what? You’re out of luck. You are stuck with that mortgage and a $3915/mth minimum payment. You can refinance your mortgage but you will have to pay legal fees and probably a mortgage penalty to exit this mortgage…
