90 Year Mortgages Now A Thing In Canada Amid High Interest Rates

[Economy 52,902]

https://www.bnnbloomberg.ca/some-canadian-mortgage-holders-extending-amortization-periods-by-more-than-double-expert-1.1934133

 

Although the maximum amortization periods allowed in Canada for a new mortgage is 25 years for insured mortgage (and 30 years for uninsured which requires at least 20% downpayment), when an existing mortgage is to be renewed a little more flexibility exists.

 

Due to mortgage rates that have more than doubled upon renewal in many cases mortgages have been extended to as high as 90 years where mostly only interest is being payed.

 

This higher flexibility than expected by banks may explain why defaults have not surged as was expected but it masks just how badly many are doing financially

[PunkTheFunk 125,719]

Now your unborn great grandchildren can be in debt too 

[Better Day 5,766]

I’ll have no descendants, so the debt will be wiped out!!! 

[bionic 50,111]

interest only mortgages are worthless to anyone trying to accrue capital

[Economy 52,902]

49 minutes ago, bionic said:

interest only mortgages are worthless to anyone trying to accrue capital

They are... But if while rates surge that's all you can afford, I'd rather temporarily pay only interest than loose my home then hopefully if rates come back down resume paying off principal at a later time.

 

The other option is go back to renting, be subject to high rents and let home prices go up even more if u try to re-enter the market

 

It's a really crappy situation but if I had no choice I'd rather do this than sell my house and go back to renting 

[Economy 52,902]

1 hour ago, PunkTheFunk said:

Now your unborn great grandchildren can be in debt too 

I mean, if ur mortgage stays the same but home prices keep going up, it would still be worth inheriting it

[JohnWayne92 2,359]

25 minutes ago, Economy said:

I mean, if ur mortgage stays the same but home prices keep going up, it would still be worth inheriting it

I dunno why this gave me chills. 
 

The way things are going has been my biggest reason for not wanting to create any children. It has been a struggle for me, and everyone I know, I am in the US, but still. To think that this is a silver lining because we won’t ever change what we are doing and how…it’s depressing.