Quote:
Originally Posted by Qwerty
46% are longer then 25 years as well. Lots of people are paying interest only on loans and have amorts of 70+ years. When they have to renew they are not allowed a 70 year amort. Their payments are going to go up insanely. 2025 is when all the COVID mortgages expire. As I have said before, if rates are not much lower then today by then, housing will collapse.
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The norm is a 25 or 30 year amortization. It's possible to refinance, restarting your 30 year (or higher. I think we'll see a lot more 35 year amortizations as common) amortization before allowing you to default. I locked in at 1.6%. If I was able to refinance on a fresh 35 year amortization, my payments would remain almost the same.
I don't see housing collapsing when there's a massive shortage of housing. People will be making the same desperate moves to hold onto their properties and kicking the can down the road.
Edit: In 3 years Canada is likely have another 3 million new residents and have built homes for about 1/3 of them. The housing crisis is the major issue facing the economy.