Carlos Montes Calgary Real Estate

Mortgages Changes Deadline Fast Approaching

Lots of offers coming in for people that are wanting to get in under the 35 year amortization. 11 days to go! 

TO BE CLEAR: deals need to be submitted to the insurer before the 18th to qualify for the longer amortization.  The deal can close after that date if just needs to be sent in.

Broken down here is what changes in amortization will do for a client that makes $55,000 per year with $300 monthly debt obligations:

Under a 35 year the client would qualify for a home purchase of approximately 340K with 5% down. Under a 30 year amortization they would be looking at a purchase 300K.
Here is what the difference in payment would look like if qualifying isn't an issue: 

Considering a $300,000 Purchase with $15,000 (5% down). The payment over 30 years is $ 1,338 and over 35 years is $ 1,238 which is a difference of $100. 

Considering a $350,000 purchase with $17,500 (5% down) The payment over 30 years is $ 1,444 and over 35 years is $ 1,560 which is a difference of just under $116. 

It’s not just a matter of a difference in payment, as this is something some people could surely handle, but if you are looking to get into your first house the longer amortization can mean the difference between a starter home and a small condo or even qualifying at all.  Longer amortizations help you qualify for more in most cases so that is something to be considered.
5 year fixed mortgage available at 3.99% on a quick close and 4.04 on a 120 day rate hold.  Excellent variable rate also available at prime -.75 or .80 depending on the clients qualification.

Leave a Comment