Extended Amortization

Extended amortization periods may allow you to qualify for a larger mortgage. The longer the amortization period, the smaller the monthly payments and hence the larger property you can afford.

For example, income of $50,000 would qualify for a mortgage of approximately $200,000 using 25-year amortization, a 5 year fixed rate of 4.39% and standard guidelines. With 35-year amortization, the same income and interest rate would qualify for a mortgage of approximately $235,000. With excellent credit and NO other liabilities (credit cards, lines of credit, loans etc.) the same income would qualify for about $300,000.

What if I don’t want to take 35 years to pay off my mortgage? By using prepayment privileges offered by most banks, you can pay off the mortgage in the traditional 25 years or less.

Mortgage amounts include CMHC/GE fees. Subject to change without notice. Approval based on formal application, credit check, income and down payment verification. Broker/lender fees may apply.

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