# CMHC and Mortgage Products



## sagsal (Apr 7, 2009)

Any thoughts on whether the threshold for down payment without insurance will go to 85% from 80% and any thoughts on whether any longer term mortgage options will hit Canada


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## CanadianCapitalist (Mar 31, 2009)

sagsal said:


> Any thoughts on whether the threshold for down payment without insurance will go to 85% from 80% and any thoughts on whether any longer term mortgage options will hit Canada


I thought it is already at 80%.

I've seen 10-year fixed rate mortgages from ING Direct and PC Financial (?). I don't think longer term than that is available (but could be wrong).


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## Sampson (Apr 3, 2009)

Could be wrong, but I think the OP is asking if the cutoff for minimum down payment without insurance will be reduced to 15%, and if longer terms for the mortgage amortizations (like in the States) - 50, 100yr etc. will be coming to Canada.

I would say no to both.

Just last year the maximum mortgage amortization allowed in Canada was decreased to 35 yr from 40 yr.

If I'm wrong, and you are referring to the term of the mortgage with the lender, then yeah, 10 yr terms seem to be the longest, but they are offered by most of the big 5 banks, I know CIBC, RBC, TD, and Scotia do it for sure.


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## Shayne (Apr 3, 2009)

I can't see anything changing in the near future. Some lenders will still do conventional 20% or more of a down payment with a 40 year amortization. It depends if they insure it on the back end or not.


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## Cal (Jun 17, 2009)

Why would anyone want to pay for house for 40 years?

The bank should just give you the house, and you can become their slave.


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## DAvid (Apr 3, 2009)

25 year fixed term at Royal Bank. Their longest amortization is 35 years.


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## mfd (Apr 3, 2009)

Lowering the minimum to 15% and increasing the amortization periods does not make house prices more affordable but does the complete opposite. Its a self perpetuating system of ever increasing housing prices with the only winners being the banks as people never end up paying off their homes and pay interest for the rest of their lives.


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## Shayne (Apr 3, 2009)

Cal said:


> Why would anyone want to pay for house for 40 years?
> 
> The bank should just give you the house, and you can become their slave.


Some people want the cash flow for other purposes, investing, their own business, etc. As long as people do it for those reasons, not because they have to, to qualify I am ok with it.

We took a 40 year amortization last year when we bought our place. We wanted the cash flow at that time. Things have changed a little since then and our 40 year mortgage will likely be paid off in 5 years.


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## canadianbanks (Jun 5, 2009)

sagsal said:


> Any thoughts on whether the threshold for down payment without insurance will go to 85% from 80%...


Why, to inflate the housing bubble for a little longer?


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