Mortgage Guide: A Look At Amortization Length

We’ve discussed in our last post some introductory information about fixed rate mortgages. This comes on the heels of the normalization of the Windsor real estate market over the last few months. The steps taken by the Bank of Canada of raising the key rates is one reason for the trends seen in our area. With these changes has come renewed searches for houses for sale in Windsor from those who have not found the right opportunity yet. When you get pre-approved for your mortgage before you start viewing Windsor for sale another item discussed will be your amortization period. Let’s take a look at how the length will affect your mortgage.

With some lenders, you can get better pricing on amortization of 25 years or less. You must also consider that a longer amortization will provide you more security should your income change unexpectedly. Payments can be increased to achieve a shorter amortizaiton period, but if something happens with your income, you can always revert back to the lower required payments. Initial longer amortization can also provide some extra flexibility for future purchases. Here are some situations in which you may consider a longer amortization:

Fluctuating income
The potential for upcoming child care expenses
Considering future property purchases (i.e. rentals)
Required in order to qualify
Future second home (cottage, vacation home) or assisting a child to buy a home

Again, the above information is to help provide you a base of knowledge. Sitting down with a mortgage adviser will help you sort through your own situation and they can give you their best advice on strategy and options. As always, if you need a recommendation for a mortgage adviser, reach out and let one of our Jumpers get you in touch with some of the best in the area.

Here at Jump Realty our agents will give you honest advice on what course of action is best for you in their professional opinion and will always put taking care of your best interests first! With offices in Windsor, Tecumseh, Kingsville, LaSalle, and Chatham, no matter where you are, a Jump agent is ready to help. Please contact us for any housing needs and let us give you a better real estate experience!