http://www.theglobeandmail.com/servlet/story/RTGAM.20060317.wxrgenworth17/BNStory/Business/home

"The 35-year mortgage has arrived in Canada, giving overstretched first-time buyers the chance to plunge into the heated real estate market -- for the long term. But it might just mean that they end up making the last payment from their Canada Pension Plan cheques."

Some notable from the above article:

35 Year mortgages has come to Canada and there are talks about 50 Year amortization in the US.

As per TD Bank economist this new type of mortgage is yet more proof that the current housing boom is losing steam, as the mortgage industry tries to pump up the rapidly depleting pool of first-time buyers.

First-time buyers in major urban centres were finding it hard to buy an affordable home with traditional 25 year amortization. Now by signing up a 35-year mortgage, the monthly payments will drop sharply.

In a traditional 25-year mortgage with a 6-per-cent interest rate, a home buyer would pay $1,919 a month on a $300,000 mortgage. With a 35-year term, the monthly payment drops to $1,695 -- but the total amount paid over the life of the mortgage jumps by $136,387 to $712,213.

Despite the recent rise in interest rates, major urban centres are still seeing substantial increases, according to figures from the Canadian Real Estate Association (CREA). The average cost of resale housing jumped to $490,004 in Vancouver last month from $387,426 a year ago; Calgary's average price soared to $304,560 from $244, 290; Toronto's, $353,928 from $334,254.

Rising Prices: Average resale house prices for February 2006 (with increase from Feb. 2005), as per the CREA:

Vancouver: $490,004 +26.5%

Calgary: $304,560 +26.2%

Edmonton: $211,531 +15.5%

Saskatoon: $148,856 +4.3%

Regina: $122,995 +6.3%

Winnipeg: $146,600 +19.6%

Toronto: $353,928 +5.9%

Ottawa: $250,689 +4.2%

Montreal: $205,160 +5.7%

Quebec: $146,012 +5.4%

Halifax: $197,144 +7.6%

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

In current scenario people who stretch too thin are likely to end up in a foreclosure.

Can someone clarify?

Does 35 year mortgage mean 35 year amortization but financing and interest rate fixed at 5 year intervals (like it is now) or does it mean a 35 year fixed rate mortgage/financing?

Thanks.

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Dimple2001

Quote:

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Originally posted by dimple2001

Can someone clarify?

Does 35 year mortgage mean 35 year amortization but financing and interest rate fixed at 5 year intervals (like it is now) or does it mean a 35 year fixed rate mortgage/financing?

Thanks.

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~ Morning rain

Quote:

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Originally posted by morning_rain


I wouldnt take a 35 year mortgage..you will pay so much more on your interest..plus be in debt much longer !

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Chandresh

Advice is free – lessons I charge for!!

Arey Kalia, khali interest only payment on mortgage available hai kya, boss? jaisa apla States (United States of America, not United States of India) mein?

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hinglish zindabad