Canadians are paying off mortgages quickly — so is a crackdown really necessary?
Canadians end up paying off their mortgages in about two-thirds of the time originally intended, according to a new survey which questions whether a crackdown on the real estate market is needed.
According to a recent report from the Canadian Association of Accredited Mortgage Professionals (CAAMP), the majority of Canadians are paying their mortgages off faster than their original amortization would suggest. Of the mortgages that were paid off between 2010 - 2013, the average amortization length was 17.9 years but ended up with an average length of 11.7 years.
The federal government is continuing to place restrictions on mortgage lending, despite recent reports that Canadians are making extra payments, accelerating their payments and shortening amortizations. CAAMP is stepping forward with the opinion that regulations are becoming too harsh, and are pledging to the government to ease the regulations for first-time buyers.