30 YR Amortization Mortgages Not a Good Deal!
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- เผยแพร่เมื่อ 11 ธ.ค. 2024
- Federal Liberals announced 3 months ago that buyers of a new home with less that 20% down ( Insured ) can now get at 30 year amortization instead the standard 25 year. to keep your monthly payments lower. This is just more socialist sleight of hand to keep you poor. Sure you are reducing your monthly payments but you are paying far more in total interest by taking out a 30 year amortization. On top of that they are increasing the cost of the CMHC default insurance by 20 basis points on these extended mortgages.
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Thanks for your continuous great content. I know that you always have our best interest in mind, much appreciated.
I appreciate that!
Great stuff as always Owen. I will point out that for people who are purchasing their first home and are very young like Owen was when he purchased his first condo at 18 or 19, I think the min down payment is still okay as opposed to renting if you plan to hold it for the long term. Just because that type of person may not have the full 20% down payment yet and they have time in their life to move up and make more money in their career later into their 20s and 30s and eventually pay down the principle with additional lump sum payments. Secondly on paying GST twice on new development, if you buy a presale, make sure you register for a GST # on the accounting side when you first pay the GST to the developer.
Agree.. get in the market by any means necessary if that's a high ratio insured mortgage so be it. I think these days it's pretty much impossible with a 5% downpayment but 10-15% can be done if your income and credit history is high enough. Sure beats renting as you point out and i should have mentioned that in this video
the price at what you buy and what you buy is far more important than the amortization of the mortgage.
When you take out a 30 yr you have to buy pre-sale ( Overpriced) and add in the default insurance ( Expensive). So right there your not getting the best price and more than likely not the best location either. Far better homes in the tangible market. Have you seen what buyers of pre-sale have been trying to sell at today? Most are losing a lot of $$
Some of you guys need to watch the video again. It's not that the 30yr mortgage is totally bad! even thought you will pay $10's of thousands in extra interest to get your payment down by $175 month it's the fine print that goes with these mortgages that the Government has added that's the main problem. Must be a pre-sale condo and you must add CMHC insurance which was already expensive and we're now going to raise the price more.
In 2007 Harper tried to extend mortgage amortization’s to 40 years; it only got rolled back because US real estate blew up. Let’s not pretend mortgage amortization’s are a partisan issue…
Don't recall that? Was it restricted to 1st time buyers who have to buy new homes ( Overpriced and 6 yr waiting time) and pay GST? Also CMHC insured with a new increased premium. If these buyers changed their mind and had to sell did they have to pay another set of GST a new increased capital gains tax and a new 20% flipping tax. Totally different landscape now
@@OwenBigland the particulars may be different but the broad strokes are not. The fact remains is that it is an issue regardless of party affiliation and we shouldn’t be ranting otherwise.
Who cares. Most peope want affordable payment.
Sure you get a slightly lower payment but you pay far more for the house and it takes you 5 years longer to do it. Not very smart in my opinion.
@cryptounleashed5305 you sound like a crypto genius, no need for you to listen to anyone.
good job now you're stuck in the hamster wheel for longer
Personally. I think if it gets you in the market. Do it. As your wage goes up you can always re-amortize or tack on extra to principal. As long as you’re paying attention.
True but not with pre-sale. Far better ways of getting in the market. Start with a high quality tangible unit with 10-15% down We can negotiate the price.. see and feel the finished product and no 5% GST