The new rules for access to a mortgage spread over a period of 30 years may be of interest to customers who know how to take advantage of them.
• Read also: 30-year mortgages: new rules by Ottawa will bring many new buyers to Montreal
“It can be good news, but you have to be careful how you use it,” says Pierre-Charles Jolicoeur, mortgage broker at JA Hypothèques, in an interview with Mario Dumont.
The expert explains that amortization over 30 years will have a significant impact on monthly payments.
He gives an example of a payment of $1,405 per month for a 25-year mortgage that rises to $1,285 per month with a 30-year mortgage.
This reduction in monthly payments is interesting, but we must be careful because in the end, owners will pay tens of thousands of dollars more with a mortgage spread over 30 years.
«[L’amortissement sur 30 ans] which should be used more when interest rates are high. But when it declines again, we might consider using the fact that it is declining to shorten the decline. Because of course, it can be dangerous,” says the mortgage broker.
Changing the amortization period of your mortgage, however, requires control, as you need to be able to put money aside each month.
“This is where it’s important to strategize accordingly because the difference in the interest paid over the whole 30 years may ensure that people don’t complete their come to pay their mortgage and come to refinance continuously,” says Pierre-Charles Jolicoeur.
Watch the full interview in the video above.
2024-09-17 21:34:09
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