# 30 year mortgage ?



## marina628 (Dec 14, 2010)

Does anyone know the % down payment you have to put down to get a 30 year term and who does them?


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## Just a Guy (Mar 27, 2012)

I've been offered them with TD with a non CMHC mortgage...I didn't think they were hard to get, did something change? I know they got rid of longer ones.


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## marina628 (Dec 14, 2010)

Just having a discussion with somebody ,did not think it is possible anymore .Her numbers are a bit tight at 25 years so she was asking me if I knew rules on 30 year.Her first home and she does have 25% down but one income and daughter in University that she is helping.


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## Just a Guy (Mar 27, 2012)

Looks like 20% down will still get you one...

http://www.theglobeandmail.com/glob...-spring-home-buying-ramps-up/article17744727/


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## Connie Merrow (Sep 9, 2014)

30 Year is a long time. I dont know the exact percentage. Thank you for sharing.


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## MorningCoffee (May 8, 2013)

Scotiabank was still offering them as recently as this summer, with 20% down.


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## Ag Driver (Dec 13, 2012)

CMHC does not allow 30yr mortgages. So, north of 20% and I'm sure you can find one wirh most lenders.


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## marina628 (Dec 14, 2010)

Thanks guys for feedback .


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## OhGreatGuru (May 24, 2009)

Ag Driver said:


> CMHC does not allow 30yr mortgages. So, north of 20% and I'm sure you can find one with most lenders.


It's more correct to say that CMHC does not insure 30 year mortgages anymore. So you have to have a high enough down payment (20%) that the lender will not require CMHC insurance. Because CMHC is the major player in mortgage insurance it's policies tend to set the bar for all lending. The changes to CMHC policy were at the direction of the government who (rightly) believed that too many people were overextending themselves financially with low-down-payment, 30+ year mortgages.

It really doesn't make economic sense to take out a 30 year mortgage, if you look at the total interest cost.


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## Mortgage u/w (Feb 6, 2014)

marina628 said:


> Does anyone know the % down payment you have to put down to get a 30 year term and who does them?


All lenders still offer 30 years amortization as long as you put 20% down. Anything less of a downpayment and you are restricted to 25 years.

As for mortgage insurers such as CMHC, they still insure 30 year amortizations - as long as down payment is 20%.
Other insurers still go as high as 40 years.


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## marina628 (Dec 14, 2010)

Hey guys my friend had her offer accepted on Saturday and closes end of October and after looking at the big picture went with 25 year mortgage.She got a nice house for $173,800 in a small town nowhere near GTA or Vancouver


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## Fain (Oct 11, 2009)

marina628 said:


> Does anyone know the % down payment you have to put down to get a 30 year term and who does them?


RMG does 35 year mortgages. I closed a 35 year mortgage at 2.94%.


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## HaroldCrump (Jun 10, 2009)

You mean a 35 year _amortization_ with a 5 year _term_ @ 2.94%, right?
Or a true 35 year term?


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## Fain (Oct 11, 2009)

HaroldCrump said:


> You mean a 35 year _amortization_ with a 5 year _term_ @ 2.94%, right?
> Or a true 35 year term?


Yes I do. Sorry about that. 35 year amortization with a 5 year term. . . A pity we can't go to 40 years amortization in Canada.


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## Jagt Mirage (Sep 29, 2014)

I have a 35 year on my primary residence and 30 year on my investment, both 5 year terms. Roughly 60% equity 40% debt on both of them. They're coming up for renewal in less than a year. I'm not sure if I can still get those kind of amortizations.


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## christinad (Apr 30, 2013)

While i have mixed feelings about getting a 30 year mortgage, what i am doing is doing prepayments. It seems to me you are better off getting a 30 year mortgage if you have the discipline to do prepayments since more money is going to the principal then if you had a 25 year mortgage. I could be wrong though.


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## Just a Guy (Mar 27, 2012)

Just because you sign a 30 year mortgage, doesn't mean you need to pay as if it's a 30 year mortgage. You could set up your payments as if it was a 20 year biweekly rapid if you could afford it...

The nice part is, if you run into trouble,my out can easily switch your payments back to a 30 year mortgage.

If you had signed up for a 20 year mortgage, you couldn't switch to a 30 year mortgage if you run into trouble.


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## Fain (Oct 11, 2009)

Jagt Mirage said:


> I have a 35 year on my primary residence and 30 year on my investment, both 5 year terms. Roughly 60% equity 40% debt on both of them. They're coming up for renewal in less than a year. I'm not sure if I can still get those kind of amortizations.


You can easily. I got one as lately as September 4th this year


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## Jagt Mirage (Sep 29, 2014)

christinad said:


> While i have mixed feelings about getting a 30 year mortgage, what i am doing is doing prepayments. It seems to me you are better off getting a 30 year mortgage if you have the discipline to do prepayments since more money is going to the principal then if you had a 25 year mortgage. I could be wrong though.


The way I see it there's no reason why you WOULDN'T go for the longest amortization possible so long as the repayment plan on your mortage is flexible enough to allows for payments above the minimum without penalties, and you're not getting dinged with a higher interest rate. I have a 35 year mortgage on my primary residence, but I'm paying double my regular payment every payment. So in essence I'm paying the payments of what would effectively be a 20 year Mortgage. The major difference is I have flexibility. If I run into a jam where I need money fast, I could at any time instruct the bank to lower my payment down to the minimum, and effectively halve my cash outflow, without ANY penalty. I can then raise it again at any time in the future when things stabilizes.


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## Jagt Mirage (Sep 29, 2014)

Just a Guy said:


> Just because you sign a 30 year mortgage, doesn't mean you need to pay as if it's a 30 year mortgage. You could set up your payments as if it was a 20 year biweekly rapid if you could afford it...
> 
> The nice part is, if you run into trouble,my out can easily switch your payments back to a 30 year mortgage.
> 
> If you had signed up for a 20 year mortgage, you couldn't switch to a 30 year mortgage if you run into trouble.


My thinking exactly


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## Jagt Mirage (Sep 29, 2014)

What's the lowest variable rate anybody has been able to get recently? I'm currently on P-.65% and it's coming up for renewal in less than a year.


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## Fain (Oct 11, 2009)

Jagt Mirage said:


> The way I see it there's no reason why you WOULDN'T go for the longest amortization possible so long as the repayment plan on your mortage is flexible enough to allows for payments above the minimum without penalties, and you're not getting dinged with a higher interest rate. I have a 35 year mortgage on my primary residence, but I'm paying double my regular payment every payment. So in essence I'm paying the payments of what would effectively be a 20 year Mortgage. The major difference is I have flexibility. If I run into a jam where I need money fast, I could at any time instruct the bank to lower my payment down to the minimum, and effectively halve my cash outflow, without ANY penalty. I can then raise it again at any time in the future when things stabilizes.


Exactly. I would do a 40 year mortgage if they were available. . . Though i just got a 2.94% Mortgage for 35 years i could have got a mortgage at 2.84% with TD Bank or True North Mortgage for 30 eyes. There's less competition in the 35 year range among lenders so you may pay a bit higher.


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