CTV News - Mortgage Minute
Frank Napolitano sits with Kurt Stoodley of CTV Ottawa Morning Live to discuss the recent changes to the mortgage lending process.
Click here for the full video from CTV Ottawa Morning Live.
On this week's Mortgage Minute, Frank Napolitano of Mortgage Brokers Ottawa joins CTV Ottawa Morning live to discuss the effects the new mortgage regulations will have on the average Canadian.
The regulation that is gaining the majority of attention is the decision to decrease the maximum amortization period from 30 to 25 years. The majority of homebuyers affected by this change are expected to be young first-time buyers. With a 30 year amortization, homeowners were able to build wealth with their mortgage, as low mortgage rates allowed 30-40% of the mortgage payment to go towards the principal. This decreases the number of homeowners paying close to interest-only payments and builds equity faster. Without the option of a 30 year amortization on a high-ratio mortgage, this possibility seems out of reach for quite a few young Canadians.
First-time buyers and veterans alike are urged to contact an Ottawa Mortgage Broker with any questions regarding any of the new regulations.