I know the feeling like everyone else - my mortgage balance looming over my head like a stormy little cloud some days. I encourage buyers to take a close look at their finances, and remember that choosing a mortgage is not just about rate, rather about flexibility of pay-down options, the quality of their lender, etc. There are many fabulous mortgage brokers and lending specialists out there who can help you with your options, be it for refinancing, buying and selling, or just general information - check my links page for a list of a few of the mortgage brokers that I have worked with in the past.
Now you might be wondering: "what the heck is amortization"? Verico Brokers for Life has published a mortgage guide with definitions of many of those confusing mortgage terms. Download the PDF by clicking here: Edmonton Mortgage Guide
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Canadians paying off mortgages early: CMHC
Nov 29, 2011 – 2:07 PM ET
While mortgage repayments can be spread out over 30 years, the CMHC reports that the average amortization period for mortgages insured by the national housing agency is under 25 years.
OTTAWA — Canadian homeowners are doing a good job of paying off their mortgages early, according to the Canada Mortgage and Housing Corp., which released its third-quarter results Tuesday.
While mortgage repayments can be spread out over 30 years, the CMHC reports that the average amortization period for mortgages insured by the national housing agency is under 25 years, and the loan-to-value ratio of those homes was 80% or less. As of Sept. 30, the outstanding loan amount per household for all homeowner loans was $159,740, slightly above the figure for the previous year.
“CMHC analysis shows that a substantial percentage of CMHC-insured high ratio borrowers are ahead of their scheduled amortization,” the agency said in its report. “Accelerated payments shorten the overall amortization period, reduce interest costs, increase equity in the home at a faster rate and lower risk over time.”
... Full article available here: http://business.financialpost.com/2011/11/29/canadians-paying-off-mortgages-early-cmhc/