For context - many forget that longer amortizations were introduced in 2006 for insured mortgages (less than 20% down payment) under the government of Stephen Harper and the Conservative Party. This was for all buyers, not just first time buyers. Initially, the maximum amortization period was even longer-up to 40 years-Over the years, the maximum amortization was gradually reduced: 2006: 30- and 40-year amortizations introduced. 2008: Maximum amortization reduced to 35 years. 2011: Maximum amortization reduced to 30 years. July 2012: Reduced further to 25 years for insured mortgages (where it remained until the new rules kick in on December 15, 2024)
@@Lifeisapartydresslikeitstupid is as stupid does. You are missing the point while some may simply choose the 30 year because "it makes sense for them". The reality. Is this just debases the canadian dollar and kicks the can down the road. All while profiteering from these ignorant first time home buyers. Prices only go up in canada, right?
@@quixomega for sure there will be market cycles, I’m saying that with these mega mortgages, when a large portion of millennials reach retirement age but still have 100’s of thousands owing on their mortgages things will get really bad
It's like correction not more affordable. Extending amortization and having to add mortgage insurance will add significantly to the cost example in practical measures would it add two or three or 5 years payments for the person who goes with this option
I think your problem is that you can do math and understand compound interest. Our society often relies on the populace being ignorant of these sorts of things.
What if I buy new build home price 1.8 million, do I still qualified for the 1.5 million downpayment mortgage rules , then the remaining amount 300K still 20 percent downpayment needed?
New ways to buy a property that you can't possibly afford. What crime did the average working family commit to be sentenced to 25 years to life, for buying a home.
That really depends. Renting and investing in a downturn, e.g. Toronto now, is definitely better. Since 1990 the Dow Jones has far outperformed real estate.
@@SteveKarrasch , while 30-year mortgages can make homeownership more accessible, they need to be paired with policies addressing housing supply, affordability, and financial stability to ensure long-term benefits for the population. I don't think Canada and US are seriously considering the drawbacks of 30-year mortgages. Think about it, who are the players benefiting most here?
Real estate is no longer a sound investment in Canada rather a source to leverage equity to max and multiply your net-worth by investing in other asset classes
The government will do anything to try to pump those real estate prices. "Affordability" will be better for a short period, then it'll normalize to be the same but with more debt. It's brainless.
For context - many forget that longer amortizations were introduced in 2006 for insured mortgages (less than 20% down payment) under the government of Stephen Harper and the Conservative Party. This was for all buyers, not just first time buyers.
Initially, the maximum amortization period was even longer-up to 40 years-Over the years, the maximum amortization was gradually reduced:
2006: 30- and 40-year amortizations introduced.
2008: Maximum amortization reduced to 35 years.
2011: Maximum amortization reduced to 30 years.
July 2012: Reduced further to 25 years for insured mortgages (where it remained until the new rules kick in on December 15, 2024)
30 Amortisation is not good for home owners.. more money for the banks and more stress for home buyers 😢
Many people have 30 year amortizations. If you put 20% down before these new rules, you could choose a 30 year amortization term
@@Lifeisapartydresslikeitstupid is as stupid does.
You are missing the point while some may simply choose the 30 year because "it makes sense for them". The reality. Is this just debases the canadian dollar and kicks the can down the road. All while profiteering from these ignorant first time home buyers. Prices only go up in canada, right?
It’s better than remaining a renter and being at the mercy of a landlord.
30-year amortize for success. Investors will come back and produce more housing if borrowing is cheaper. Then rents come down. Duh
This is not going to end well
When is the end date? Asking for a friend.
For these mortgage rules, the end will be when millennials become retirement age
@@CanadianSonNo, the current property bubble can't last another 30 years. This is just going to kick that can slightly down the road.
lol Steve! Exactly 😆
@@quixomega for sure there will be market cycles, I’m saying that with these mega mortgages, when a large portion of millennials reach retirement age but still have 100’s of thousands owing on their mortgages things will get really bad
It's like correction not more affordable. Extending amortization and having to add mortgage insurance will add significantly to the cost example in practical measures would it add two or three or 5 years payments for the person who goes with this option
I think your problem is that you can do math and understand compound interest. Our society often relies on the populace being ignorant of these sorts of things.
That's great news , by the time you finish paying off your home , you'll be in a wheelchair.
For some people by the time they get the down payment they are seniors. Hence the benefit of a 30 year amortization
we need 50 year ams
Only in North America do people love lifelong debt & servitude
We need 40 and 50 year amortizations
Great video Tom!
Convincing not so smart people to buy something they shouldn’t be buying, what can go wrong ?
Everything
Remember when rates come down these payments Tom and Jesse are showing will come down. Good video Tom!
What if I buy new build home price 1.8 million, do I still qualified for the 1.5 million downpayment mortgage rules , then the remaining amount 300K still 20 percent downpayment needed?
No you would not, any purchase price over 1.5M has to be 20% down on the total amount.
@TomStorey In Toronto for new build home are more than 1.5 million especially two storey single detached home.
New ways to buy a property that you can't possibly afford. What crime did the average working family commit to be sentenced to 25 years to life, for buying a home.
No different than paying rent your entire life and having nothing to show for it.
That really depends. Renting and investing in a downturn, e.g. Toronto now, is definitely better. Since 1990 the Dow Jones has far outperformed real estate.
Where did these digits about a 21k come from? From my calculations, it is no less than 50-80k for extra 5 years. COuld you elaborate please>?
OMG, 30 years... well done Canada 😢
Standard mortgage in the US has been 30 years for a long time.
need to bring back the 40 year
@@SteveKarrasch , while 30-year mortgages can make homeownership more accessible, they need to be paired with policies addressing housing supply, affordability, and financial stability to ensure long-term benefits for the population. I don't think Canada and US are seriously considering the drawbacks of 30-year mortgages. Think about it, who are the players benefiting most here?
Tom are you a mortgage agent?
Are you giving advice on mortgage financing?
No, Jesse is the mortgage broker. I am a real estate agent.
To bad that we have nothing that moves out economy except the real estate
Lots of good information 🙏
Thanks for the updates..
Good job! Thank you!
Real estate is no longer a sound investment in Canada rather a source to leverage equity to max and multiply your net-worth by investing in other asset classes
truth. I'm currently on that very same path
Tom, you forgot the new rules on pre-construction. 30 year amortization for anyone - you don’t have to be a first time buyer
Check out 1:13. thanks for watching!
30 years of amortization is a trap. Always try for a lower amortization.
investors would prefer interest only. Stretch out the length to provide cheap housing
That barely helps. Instead of living paycheck to paycheck for 25 years now it’s 30 years
Grandchild needs to buy apartment . Great.savings deposit in one year 20,000..Age 24.
The government will do anything to try to pump those real estate prices. "Affordability" will be better for a short period, then it'll normalize to be the same but with more debt. It's brainless.
That's what Ravi's rules are doing at the moment.
Now I'm leaning towards a .25 basis point decrease on Dec 11, I was thinking .50 before
Tiff wasn't
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@DummMoney-rr1fi nice
@@rorythomson3439 gotta support Tom
Second😂
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This is so rediculous!
what's ridiculous are the Carbon taxes and the lack of 40 and 50 year amortizations