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Originally Posted by hulkrogan
So everyone who bought during the 30/35/40 year mortgage period just got royally $*%&ed.
Good work government.
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Yup - but the government is "saving Canadians thousands"
Quote:
Originally Posted by TheGrimm
I don't get why anyone would want to do a 30/35/40 year mortgage in the first place. If you need to stretch yourself THAT much to get approval or feel comfortable with your monthly payments you should simply be buying a lower cost home or condo etc.
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Why? What if you wanted to buy something and were expecting a substantial increase in pay. I bought when I could just affoard it and now it's pretty easy. Since I purchased almost 5 years ago my pay has increased 66% and I make additional earning on the side. If prices decline it impacts everyone (how much or if they care is another matter) who currently owns a house.
Quote:
Originally Posted by Rubicant
Unfortunately that period of time likely allowed a lot of buyers into the housing market that couldn't have afforded the homes they purchased on a 25 year amortization. I'm going to guess that housing prices were higher than they would have been due to that increased demand.
So I completely agree with you. I bought on a 25 year amortization but probably paid more than I would have if the 30 - 40 year amortizations hadn't existed.
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Yup, even thouse who went with shorter amortizations at the time could have a resulting negative impact on what they paid.