Exciting New Mortgage Development

Posted by Joel Nash Mar 31, 2006

The Canadian Housing and Mortgage Corporation (CMHC) has announced an exciting new pilot project that means changes to the mortgage marketplace. They are extending insurance to lenders for a 30-year amortization as a pilot project that started March 3, 2006 and runs until June 2006.

Previously, twenty-five years was the maximum amortization period available. Longer amortization periods mean lower interest rates and principal payments. This is a great program for buyers to consider.

This reduced payment schedule will provide potential buyers with improved access to home ownership, by increasing their available financing.

First time homebuyers can afford higher priced homes with less available income and current homeowners can increase personal equity by extending the amortization periods on their existing mortgage.

So if you're a new buyer thinking of purchasing a first home or a seller looking to get into a different home this mortgage option will help you maximize the amount you can borrow to make the important investment of homeownership. Check with your local financial institution or mortgage broker for further details.