30 Year Amortizations in the Spotlight Again
A proposed change brought forward by the Office of the Superintendent of Financial Institutions would cap the maximum amortization of conventional mortgages to 25 years, a change that was implemented to insured mortgages last summer.
Last July, a wave of mortgage regulation changes were implemented, putting the brakes on home ownership for many Canadians. Many went back to renting, saving, and waiting for the dust to settle until they were ready to search again. A proposed change put forth last week from the Office of the Superintendent of Financial Institutions (OSFI) to limit the maximum amortization period for conventional mortgages (those with a down payment of 20% or more) to 25 years may just change the face of the mortgage market again.
OSFI is currently seeking the advice of the mortgage industry before implementing the change, and it has already been reported that the Canadian Association of Accredited Mortgage Professionals (CAAMP) intends to approach OSFI to discourage this move.