Mortgages: The Maximum Amortization Period From 30 to 25 Years

Canada mortgage amortization period goes from 30 to 25 yearsThe maximum amortization period for a mortgage has been changed from 30 to 25 years, the Minister of Finance Jim Flaherty recently announced.

The restricting of these mortgage rules is designed to curb the Canadian household debt, which now stands at all-time highs. The Minister also hopes to balance the area condominiums in major cities of Montreal, Toronto and Vancouver, where housing bubbles have become prevalent.

What will the consequences be with these new Canadian mortgage measures?

For new homebuyers who will be forced to pay off their mortgage more quickly, this new measure means they will have to pay higher monthly payments. Less affluent buyers will also think twice before becoming homeowners. A decline in the demand for houses for sale could be felt in the interim.

What do you think of this new amortization measure?

Are you concerned about the debt ratio of Canadian households? Do you think this could add some time to sell your property? Use the comments area to give us your opinion!

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