As of July 9th, 2012, the CMHC no longer insures 30 year mortgages, and the products referenced on this page are no longer available. Amortizations of up to 35 years are still available for conventional, uninsured mortgages, but these mortgages require a down payment of 20% or more.
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Among the choices in the Canadian mortgage financing market is the 30 year amortization. In the past, when it came to financing, the 25 year amortization was the longest period of time you could stretch your mortgage out to. Recently, the 30 year amortization has become quite popular.
It’s most popular with first time home buyers, homeowners looking to refinance for lower payments and with people who want to consolidate their debts with their mortgage. The 30 year amortization can be used with any term typically in Canada; most lenders provide this amortization, and you get the same flexibility as you would with a 25 year or less amortization.
The 30 year amortization is available to anyone seeking a mortgage. Many new and pre-owned home buyers have decided to choose this amortization to keep their payments smaller. Having a 30 year amortization doesn't mean you are necessarily stuck with your mortgage for 30 years though. Any extra payments you make while in a fixed, variable or adjustable rate mortgage, or if you sell your home, can all reduce the length of your amortization.
Many Alberta Equity clients who take advantage of a longer amortization and a variable rate mortgage find that they make a big dent in their mortgage balance over a short period of time. One Alberta Equity client in particular started with a very large variable rate mortgage and an extended amortization of 30 years when they purchased their home. Taking advantage of low variable rates and making only ONE extra payment per year, they managed to drop their amortization to under 20 years after only 3 years of payments. Imagine the interest savings alone! They thought they would have their mortgage for at least 28 years, but without much effort, they managed to knock well over 10 years off from their total amortization by cleverly managing their finances.
These results are not typical but they can be possible if the right plan and options are discussed. Alberta Equity knows how to setup a 30 year amortization while providing the value and advice you need. We can help you take advantage of the lower payment that an extended amortization provides and we can also help you put the plan into action to pay it off in less than 30 years.
Alberta Equity has helped over 50,000 people find and qualify for the best mortgages in Canada for over ten years. We do all of the heavy lifting and ensure that you get the best mortgage rates and product features available. Apply online for a free, no obligation consultation or alternatively, view our products and services.