Obtaining a mortgage can help purchasing a new home or investment property a reality. But no sooner is the mortgage obtained than the quest to pay it off begins.
The findings of a recent report published by the Canadian Association of Accredited Mortgage Professionals (CAAMP) indicate that Canadians have been paying their mortgages off faster.
The report states that on average, Canadians tend to pay off their mortgages off by about two-thirds of the allotted time. The reason for this is due to the federal government’s tightening of the rules for mortgages.
Data from the CAAMP reports that the average amortization length for mortgages that were paid off between 2010 and 2013 was 17.9 years, but due to the stricter rules, Canadians were able to pay them off in about 11.7 years.
In recent years, Ottawa has decreased the maximum amortization period from 40 years to the current limit of 25. CAAMP is crying foul of these changes, stating the government’s mortgage rules have become overly strict.
Although the mortgage rules are far more stringent now than in the past, Canadians who have obtained mortgages are showing that they can act accordingly within these new boundaries. This new trend bodes well for homeowners and homebuyers, and may very well continue.
