Quote:
Originally Posted by Finner
What if i wanted a 40 year mortgage with 10% down. Thats what i was potentially looking at doing. Gives me some cash flow with the reduced mortgage payment, but i can add as much extra as i want. At my current job, my salary isn't very high but i get pretty giant bonus's so i was counting on a 40 year, that i'd pay off in 30.
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There are actually a few ways around this. If you went with a non-standard mortgage like the Manulife One or Canadian Tire All-in-one account you could pay what you can all year and then throw your bonus at it every year to reduce the principal all at once.
It might actually work out better for you in the long run. Plus you can put as much in a lump sum as you want...a lot of banks limit how much you can put against the mortgage to 15% of the initial amount.
You can use the Manulife One Calculator here:
www.manulifebank.ca