The purpose of extending the amortizaiton period of a mortgage is to increase affordability and purchasing power.

It's not a static deal
Loan principle can be paid down over the life of the mortgage to reduce amortization and save on interest.

Background
In an effort to enhance affordability, and increase access to homeownership, both Canada Mortgage and Housing Corporation (CMHC) and Genworth now provide mortgage insurance on loans with amortizations up to 35 years. By amortizing the mortgage over a longer time period and affectively reducing the monthly payments, Canadians now maximize their purchasing power and maintain pace with the rapidly increasing value of the Canadian home.

Details
The extended amortizations apply to purchase transactions, purchase plus improvements, secondary homes and refinance for repayment of existing financing, debt consolidation, renovation, & asset enhancement.

Extended amortizations can be applied for purchase with as little as 5% down and on refinances up to 90% of the current market value of your property.

Both fixed term and variable or adjustable rate mortgages products are permitted under the extended amortization

All loans obtained under the extended amortization programs will be insured by either CMHC or Genworth regardless of the amount of down payment. Even purchases made with a 25% down payment will have to be insured if you want to extend the amortization to 30 or 35 years.

Premium Rates
Below is a table that outlines the insurance premium to be added to the mortgage depending in the amount of down payment you make on a purchase or the amount of equity that remains in your property after a refinance.

We have also added a 40-year amortization capability that is not illustrated in the table below.

Loan To Value Ratio	30 Year	35 Year
Up to 65%	0.70%	0.90%
65.01% - 75%	0.85%	1.05%
75.01% - 80%	1.20%	1.40%
80.01% - 85%	1.95%	2.15%
85.01% - 90%	2.20%	2.40%
90.01% - 95%*	2.95%	3.15%

For further details related to the extended amortization program please contact Kevin Suddaby, your accredited mortgage professional, at 403-282-7052 or by email. Apply online now...