What happens when your amortization period shrinks? Maximum Canadian amortization periods have shrunk from 40 years to 35 years and as of this Spring to 30 years. What does this mean for the real estate market? I think it will impact some first time buyers, and keep them from being able to get into the market. A shorter amortization period means higher payments. It will also impact some buyers from being able to afford that extra $10,000. or $20,000. that they need to purchase the home they really want. They will not have the option of paying out the extra money over more years.
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales
Shorter amortization periods will certainly impact some buyers Donna. Maybe they will need to buy a smaller or less expensive home.
May 27, 2011 05:23 AM
Waterfront, Luxury, Family, Affordable, Cottage, Deals - Bridgewater, NS
Homes and Property for Sale Nova Scotia
Al, you are so right. But, I guess in this economic climate the shorter amortization periods are necessary.
May 27, 2011 05:27 AM
eXp Realty, Victoria BC www.pfanntastic.com - Victoria, BC
Talk To or Text Peter 250-213-9490
Hi Donna,
the adjustment for buyers is very severe, and may cause a bit of a slow down for some time in buyers ability to enter the market, it also can cause home owners that have bought a home in the past few years to have some serious issues if and when they try to refinance their current mortgage when they become due.....
I understand and agree with the general concept, implemented by the Fed's, however it will have some serious impact for a number of buyers, sellers, the market in general and those that work in the real estate and lending industry.
May 27, 2011 05:51 AM
Waterfront, Luxury, Family, Affordable, Cottage, Deals - Bridgewater, NS
Homes and Property for Sale Nova Scotia
Peter and Linda, the situation is tenuous, that's for sure. Hopefully, the government and the financial system will proceed cautiously.
May 28, 2011 03:03 AM
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario - Trenton, ON
Trenton Real Estate
Donna, it might make the dream of home ownership very difficult for many people starting out.
May 28, 2011 05:49 AM
Waterfront, Luxury, Family, Affordable, Cottage, Deals - Bridgewater, NS
Homes and Property for Sale Nova Scotia
Yes, Malcolm, I agree. I think it will keep some people out of the market.
May 28, 2011 06:05 AM
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Donna Malone
Homes and Property for Sale Nova Scotia
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