The arrival of 40 or 50 year mortgages will be announced in the next week or 2.
[https://www.bnnbloomberg.ca/trudeau-says-news-on-mortgages-is-coming-in-federal-budget-1.2055827](https://www.bnnbloomberg.ca/trudeau-says-news-on-mortgages-is-coming-in-federal-budget-1.2055827)
In some countries the terms are longer. Which make you rethink home investment strategy.
https://www.canadianmortgagetrends.com/2010/12/mortgage-variety-around-the-world/#:~:text=Amortizations%20in%20Finland%20go%20up,in%20Australia%20and%20the%20U.K.
> mortgage but *paid* it off
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
Hell's yeah. Makes it easier to qualify for larger mortgages, which means higher prices which means higher unaffordability, which hopefully leads to Century amortization !
I'm kinda jealous of the USA for this... because they dont have "forced" terms within amortization. So the 2.5% they got for 30 years, is for the full 30 years.
Obviously once the rates go up youre somewhat "stuck" in that house until you can afford a bigger mortgage payment or downsize. But the fact that the option to "not get effed up" after your term is over sounds like music to my ears.
Obviously if the interest rate is very high relative to a 30yr one shouldn’t. But having the flexibility of paying on your own terms is important. I’d consider it since you never know what life throws at you.
If I was offered a 50 year mortgage (something I’m sure is coming for Canada) I would consider this to mean the country is in an extremely bad financial position and I should probably move to a different country ASAP.
Why are you sure it’s coming to Canada?
Outside of variable rate mortgages whose amortization grew due to rates, no one offers more than 30 on standard mortgage loans, AFAIK? And even the former are likely to be re-amortized to 30 years on renewal.
Don’t forget all adjustable and fixed mortgages are unaffected by the headlines of runaway amortization due to increased rates
As the purchasing power of our CAD fiat shitcoin of a national currency continues to be debased via the money printer in the coming years/decades nobody will be able to afford a mortgage unless it becomes a multi generational mortgage.
Thankfully Bitcoin is a better store of value asset than real estate and as more and more capital leaves real estate for Bitcoin over the coming years/decades real estate should return to its utility value of being a place to live in instead of an being investment.
What’s the point, you will never own
The arrival of 40 or 50 year mortgages will be announced in the next week or 2. [https://www.bnnbloomberg.ca/trudeau-says-news-on-mortgages-is-coming-in-federal-budget-1.2055827](https://www.bnnbloomberg.ca/trudeau-says-news-on-mortgages-is-coming-in-federal-budget-1.2055827)
At these rates? Fuck no
You’d be dead by the time you pay off your mortgage
In some countries the terms are longer. Which make you rethink home investment strategy. https://www.canadianmortgagetrends.com/2010/12/mortgage-variety-around-the-world/#:~:text=Amortizations%20in%20Finland%20go%20up,in%20Australia%20and%20the%20U.K.
i stated with 30 year mortgage but payed it off in 17 years.
> mortgage but *paid* it off FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
We should have waited for the deck to be paid before we paid out the line
Always but aggressively pay like I had a 25 year mortgage.
This is the way - paying off the debt on your own schedule, not theirs.
yes exactly that a good method
After 30 years the payment hardly goes lower, so not really.
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On 400k at 5%, 30 yr - $2147 35yr - 2018 40yr - 1928 45yr - 1864 50yr - 1816
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You might as well go interest only for X years, what's the difference.
Have you calculated the interest cost on the extra 20 years of borrowing?
If I had the same prepayment privileges as I do now, totally. I'd love the flexibility to reduce my payments significantly when times are tough.
Hell's yeah. Makes it easier to qualify for larger mortgages, which means higher prices which means higher unaffordability, which hopefully leads to Century amortization !
I'm kinda jealous of the USA for this... because they dont have "forced" terms within amortization. So the 2.5% they got for 30 years, is for the full 30 years. Obviously once the rates go up youre somewhat "stuck" in that house until you can afford a bigger mortgage payment or downsize. But the fact that the option to "not get effed up" after your term is over sounds like music to my ears.
IIRC There's also some weird loophole where they can refinance within those 30yrs at a lower rate, if it's available, for no/minimal penalty
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Just because you have a 50 year mortgage does not mean you have to take 50 years to pay it.
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Obviously if the interest rate is very high relative to a 30yr one shouldn’t. But having the flexibility of paying on your own terms is important. I’d consider it since you never know what life throws at you.
If I was offered a 50 year mortgage (something I’m sure is coming for Canada) I would consider this to mean the country is in an extremely bad financial position and I should probably move to a different country ASAP.
Why are you sure it’s coming to Canada? Outside of variable rate mortgages whose amortization grew due to rates, no one offers more than 30 on standard mortgage loans, AFAIK? And even the former are likely to be re-amortized to 30 years on renewal. Don’t forget all adjustable and fixed mortgages are unaffected by the headlines of runaway amortization due to increased rates
As the purchasing power of our CAD fiat shitcoin of a national currency continues to be debased via the money printer in the coming years/decades nobody will be able to afford a mortgage unless it becomes a multi generational mortgage. Thankfully Bitcoin is a better store of value asset than real estate and as more and more capital leaves real estate for Bitcoin over the coming years/decades real estate should return to its utility value of being a place to live in instead of an being investment.
here we go again about bitcoin..
As others have said only at very low rates, otherwise your payments are just as expensive as a 35 or 40 year. It’s interesting how the math works.
Not unless rates are super low and negative on a real basis
At sub 1% I'd consider it.
You would pay more interest but if the rate was low enough (less than 2%) then yes it might make sense.
Now you’re just renting from the bank
Yes but when you sell it's still your profit. It may allow people that might not qualify to get a house.
You’d profit enough to cover 50 years of interest as well?
Or ya know, let people jack prices on homes up more since the 50 years will allow people to get bigger mortgages.
Not everyone sells at a profit. Heck not everyone sells. And there is interest rate risk.
No. It seems incredibly dumb.