None of the large banks can offer a 40 year mortgage, not even ING or other online banks … But WE CAN …and at even better than bank rates !
WHY would you need a 40 yr mortgage?
Take clients: Joe and Joanna Johnson *actual names changed
They’re selling their current home and purchasing a new home with 20% down.
- They have 1 kid starting grade 9 and are hoping for him to graduate and attend post-secondary education.
- Like every other Canadian, RRSP Contributions, investments and monthly obligations can take a lot of their monthly income.
With a mortgage of $350,000.00 and a rate of 5 yr fixed at 3.25 here are the two payment options.
With a 25 year amortization: Monthly payment is $1,708.58 With a 40 year amortization: Monthly payment is $1,299.41
That’s a savings of $409.17 per month.
So Jo and Joe decide to put those savings in a tax free savings account every month.
At the end of the 5 years the Johnsons have saved $24,550.20 in principle payments (not including any interest earned) for their childs education!
So the 40 year am isn’t just for those with limited cash flow. The possibilities are endless.
- To buy a vacation home?
- Wanting to put extra funds into RRSP or investments?
- Wanting to put that money into their growing new business?
OR being able to keep you current home as a rental and qualify to now carry both homes.
Yours in amortization options,