SHOULD YOU APPLY FOR A 30-YEAR MORTGAGE?

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SHOULD YOU APPLY FOR A 30-YEAR MORTGAGE?
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• Most mortgages in Canada are limited to a 25-year
  amortization period (the total life of a
  mortgage), and this is mainly because mortgages
  requiring CMCH insurance coverage have a 25-year
  maximum. However, 30-year mortgages do exist in
  Canada, but youll need to have a low-ratio
  mortgage that wont be subject to long-term
  finances.
• Longer amortization periods are not necessarily
  better, as while you may reduce your monthly
  payments, the overall interest amount youll be
  required to pay will increase. If you really want
  a 30-year mortgage, youll need to carefully
  consider your finances from your current
  perspective, as well as long-term.

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• Heres a brief breakdown of high and low ratio
  mortgages to help you decide what mortgage term
  will best suit your circumstances
• Should you go high or low? High-ratio mortgages
  versus low-ratio mortgages
• With a down payment of less than 20 of the
  purchase price, a high-ratio mortgage illustrates
  the mortgage-to-property-value ratio the smaller
  the down payment, the higher the ratio.
• Requiring the borrower to pay for default
  insurance (CMCH insurance) which is mandated by
  law, a high-ratio mortgage restricts the borrower
  to a 25-year amortization period.

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• Requiring a down payment of at least 20, a
  low-ratio mortgage costs you less in CMCH
  insurance premiums, and gives borrowers the
  opportunity to select an amortization period of
  up to 30 years.
• How can you get a 30-year mortgage in Canada?
• Firstly, youll need to save enough money to make
  your 20 down payment, and factor in the costs of
  purchasing a new home. Closing costs come in at
  between 1 and 5 of the total purchase price,
  depending on the propertys location.
• Once youve saved enough money, you can begin
  searching for a home within your price range.
  Some mortgage companies have online calculators
  to help you determine your budget, or you can
  chat in person to a financial advisor.

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• Then, youll need to find a mortgage provider.
  Most offer non-insured 30-year mortgages, but
  youll still need help deciding which is the best
  one for you. Talking to a mortgage broker can
  help you get the best deal, as they can compare
  rates between many lenders, and may even have
  access to special deals not typically given
  directly to borrowers. Dont forget that an
  initial consultation with a broker is free of
  charge.
• So, if you think that a 30-year mortgage is best
  suited to your financial circumstances, remember
  that youll need at least a 20 deposit to avoid
  CMHC insurance, and the mortgage may cost you
  more over time, as well as requiring more money
  upfront.

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• To conclude
• Think carefully about your options before you
  decide to commit to a 30-year mortgage, and seek
  professional advice and guidance to help you make
  the right decision.

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• Red Key Mortgage is located in Calgary, Alberta.
  We are a boutique brokerage with high volume
  serving hundreds of clients locally and
  nationwide every year. We have a number of
  associates dealing in mortgages as licensed by
  the Real Estate Council of Alberta. Being the
  best calgary mortgage agent, Red Key Mortgage,
  will provide all of your available options from
  the entire mortgage market and allow you to make
  an educated decision where you'd like your
  mortgage to go. Red Key Mortgage works with big
  banks in Canada, as well as over a dozen other
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  calgary, contact us today! We can't wait to get
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