The Zero Money down 40 year Amortization Mortgages run out effective October 15,2008.
In an effort to protect and strengthen the Canadian housing market, the Governement of Canada has put a deadline on 40 year amortized mortgages. As of October 15,2008 it will a little more difficult for first time buyers to qualify for larger mortgages. It would be a massive understatement to suggest that this measure is being taken to avoid a similar crisis as the US real estate market is currently experiencing. Thankfully, our government recognizes the dangers of making high-ratio financing readily available for buyers today. The following blog post I found on BCMortgage.ca explains in greater detail all the changes being made to the mortgage industry in general by October 15,2008. My hope would be that first time buyers that truly require this type of this mortgage product will do so while they still can.
Posted by Jason Neumann
on September 26, 2008