Parade of Homes | Fall 2018

YOU WANT TO KNOW ALL THE FACTS; YOU WANT TO BE PREPARED; YOU WANT TO MAKE THE BEST DECISIONS POSSIBLE.

“It’s time very well spent because buying a home is probably the biggest investment you’re going to make in your life. You want to know all the facts; you want to be prepared; you want to make the best decisions possible. This is something you do once or twice in a lifetime — you want to make sure you do it right.” There have been significant changes in recent years. While it was possible to get a 40-year mortgage a few years ago, the maximum amortization period — the length of time it takes to pay off your mortgage — is now 30 years for a conventional mortgage, on which the buyer makes a down payment of 20 per cent or more. Where the down payment is less than 20 per cent, mortgage default insurance offered through the Canada Mortgage and Housing Corp. (CMHC) and other insurers is required, and buyers pay an insurance premium. (CMHC-insured mortgages have a maximum amortization period of 25 years.) Cont’d on page 50

“Most customers or consumers that I meet with really welcome the stress test and are pleased that we have this in place to protect not only them but also other fellow home buyers and consumers in the marketplace,” Lagimodiere says. “For the last 20-plus years, rates have been dropping up until late 2017, so a lot of these consumers have been enjoying all the benefits at renewal time of seeing rate decreases. Many consumers have never seen or been in a rising interest-rate environment and they don’t know what it means to them financially.” Lagimodiere encourages consumers to educate themselves: Check out online resources, seek advice from friends and family and, most importantly, sit down with a professional who is on top of all the latest developments and mortgage options.

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