How Banks Are STEALING From You! | Canada's New 30 Year Mortgage Option

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0:00 NEW 30 Year Mortgage in Canada
0:38 Who Qualifies?
0:55 What are the Qualifications?
1:40 Type of Homes it Applies to?
3:00 Does it Make Sense to take a 30 year mortgage in Canada?
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🔑 Key Takeaways of the 30 Year Mortgage in Canada:
Eligibility: First-time buyers, newly built homes, high-ratio mortgages, and homes under $1 million with less than a 20% down payment.
Policy Goals: Aimed at helping younger buyers with lower monthly mortgage payments.
Criticism: Limited to newly built homes, potentially ineffective in high-cost markets, and higher long-term costs due to extended interest payments.
Expert Opinions: Mixed reviews, with some experts believing it won't significantly impact affordability in high-cost areas.
Financial Impact: RBC analysis shows reduced monthly payments but increased total interest over the loan's lifespan. CMHC adds a 0.2% mortgage insurance premium.
Market Trends: Shift towards longer amortization periods, with 29% opting for 25 years or more in 2023.
Future Predictions: Uncertain uptake and overall impact on market affordability.

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The views and opinions presented here are exclusively those of James Roffel and do not represent those of REAL Broker or the AOIR. They should not be interpreted as professional advice or the foundation of an agency relationship. Before acting on any decisions based on the information provided in these videos, it is strongly advised that you consult with a professional advisor. The purpose of this communication is not to encourage or lead to the violation of any existing agency agreement. This content should not be considered as financial advice.
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[chinadollfmd]

You have to keep in mind, many home buyer buying pre-construction was approved when rates were 2.99%. Taking possession now, interest has almost doubled making the payments 40% or more higher. This led to a massive amount of turndowns leaving builders with inventory and driving prices down. Many new builds don't even appraise when taking possession. By increasing the amortization higher, this allows more buyers to get financing and save the new construction business so this is a good thing.

[agodelianshock]

As long as we still have to renew every 5 years it is completely arbitrary what the length of the mortgage is. Just more interest and debt to fuel the bubble.