Understanding Amortization {Winnipeg Real Estate}

(July 16, 2012 , posted in News)

As of July 9th, the new mortgage rules came into effect. You’ve probably heard the one argument, stating that this reduction from 30 years to 25 years can make it harder on first-time home buyers to enter the market. But have you heard the other side? A shorter amortization may actually save you tens of thousands of dollars in the long run. As a former mortgage banker and mortgage broker trainer, Deb Goodfellow had plenty of experience offering mortgage advice. In her banking career, she often advised her clients to opt for the lower amortization, which in turn saved them thousands of dollars.  Check out this chart below to see how paying only $137.74 dollars a month more can save you nearly $53,000!! 
So, not only is your mortgage is paid off five years faster, you have saved over $50,000 in interest!  A few of the other changes include:
  • Limit of 80% refinancing, down from 85%
  • Mandatory 20% down payment for homes over $1 million
 If you have any questions about mortgages, we'd be happy to help! Send us an email.
The Goodfellow & Goodfellow Real Estate Team- Providing real estate services to Winnipeg and surrounding areas for over 30 years.