I have had quite a few questions over the last few weeks regarding shorter amortizations and how they are going to affect Canadians. Whether you are looking to purchase a home or refinancing your current home, shorter amortizations may mean less available credit.
If you have an income of $50,000 a year you would qualify for approximately $242,307 over 35 years. If the amortization is reduced to 30 years, they would then only qualify for $224,584. That is a reduction of almost $18,000.*
If you were to choose a mortgage of approximately $250,000 at 3.99% interest and shorten the amortization it from 35 years to 30 years your monthly payments would increase approximately $87 a month.
If you have any questions on the new mortgage rules, please do not hesitate to contact me.
*For illustration purposes, I have used average property taxes of $2000 and standard $100 for heating. I have also not factored in any additional debts
If you have an income of $50,000 a year you would qualify for approximately $242,307 over 35 years. If the amortization is reduced to 30 years, they would then only qualify for $224,584. That is a reduction of almost $18,000.*
If you were to choose a mortgage of approximately $250,000 at 3.99% interest and shorten the amortization it from 35 years to 30 years your monthly payments would increase approximately $87 a month.
If you have any questions on the new mortgage rules, please do not hesitate to contact me.
*For illustration purposes, I have used average property taxes of $2000 and standard $100 for heating. I have also not factored in any additional debts
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