Quote:
Originally Posted by Art Vandelay
I have a 35yr. I have 1.5 yrs left on my current term. Through some prepayments I have my amortization down to 30 yrs as of now. I did not need CMHC insurance when I signed up for the mortgage as my down payment was like 30%.
When it comes to refinancing, will I need to go with a 25yr amortization or do banks still offer more than 25yrs on non-insured mortgages?
|
Nope, you'll be fine with whatever you had, it's only on new mortgages.
Quote:
Originally Posted by TheGrimm
This is not a smart game plan most of the time. It's great that you got your raises and that you are comfortable, but what would happen if you weren't living in Alberta and your pay went the other way or you got layed off? I am just playing devils advocate, but why put yourself through the extra stress of it all when you could have simply bought the "dream" house down the road and had a larger downpayment having saved all that extra money?
|
"Most of the time"? The default rate and foreclosure rate across Canada would certainly disagree with that.
A hundred bucks isn't likely going to make the difference if someone gets laid off. They're either going to be screwed or they're not. If I got laid off I'd have been screwed short term but might have found work. If not I'd likely have moved out with someone and rented the place out and waited. If in the end I need to bail a 35, 30 or 25 year amortization at the time wouldn't have made a difference. If I had to amortize over 25 years I likely would have had the same amount of payment because I'd be at the lower amortization but in smaller house.
I'm not saying the change is a necessarily a bad one, I just disagree with the applauding that it needed to be done to save Canadians. If anything, it might hurt anyone that's bought since 2006 or anyone who owns a house if it moves prices down.
I just got an automatic increase on one of my smaller credit cards. As well as new cheques for a low 1.9% interest rate until January 2013. That brings my total available credit card debt up to $19,400 with $600 currently used.
If the government wants to stop Canadians from hurting themselves focus on an area that they do. Focus on limiting what the stupid people have access to quickly at outrageous interest rates.