I don’t believe the prediction and don’t see any stats that would back up the prediction.

To me I don’t buy it when we have amortization rules changing from 40-years to 25-years only a few weeks ago, and we are only half way through the year.

Eagle one,

The change in the mortgage amortization is likely driven by the Federal Government telling the banks to bring to a acceptable time length to pay it off. Meaning stop encouraging the borderline buyers to sign away 40 years of earning and paying the interest. Thus this is one of the distinctions that makes us a bit different from the American system. The government wants to ensure that home buyers are qualified and have enough money to buy that house. They do not want a whole swack of houses being foreclosed. Because that generally destroys consumer confidence and then everything slows down.

So for the actual value of the houses going up with a shorter amortization means we are healthy.

The federal government and the banks wants to temper the rise on housing in the big centers so that they can control inflation. They had two choices, reduce the amortization or increase interest.

As far as interests go, I think it is likely going to rise by this time next year.

Up 15% over last year it says. Was last year an increase on the year before or a decrease, and what was the percentage change? That’s the trouble with giving statistics as “an increase over last year”, it can hide otherwise bad performances. Let’s see the numbers for the last 20 years to compare where we are now with then.

Come next May property values are gonna take a dive right across the province. Sad but true.

He spoke is correct! If you can’t pay off a house in 25 years, you should not buy it! The truth is actually abut 15 years but the toys generally come first!
I hope you are wrong weaksauce, but you are probably right!

300 000.00 at 5% 25 Years = 1745
20 Years = 1971
15 Years = 2364

if you don’t buy that new Truck ,you can pay your Place off in a hurry.

No argument from me on those points He Spoke.

My point is that when people can buy on a 40-year mortgage they can afford to pay more for a house and are likely to make their purchase before the change in amortization periods.

To use the stats from the first half of the year with 40-year amortization periods and projecting a 15% increase for the entire year where the last half of the year has 25-year amortized mortgages is irresponsible hypothetical projections that have no place in properly informing the public other than wishful market pumping by speculators.

With amortizations dropping from 40-years to 25-years and interest rates on the rise it is simply irresponsible to be projecting asset values increasing in my opinion.

Paying on a 40 or even 30 Year Loan is just sickening , Question how old will you be by the Time you have it payed off ? Do you intend to work at Walmart after Age 65 to make your Payments.
Your House is your Home , not some Investment, it’s the Place where you live and it does not matter how much the Agent tells it is worth , remember he is nothing else than a “Salesman” and his only Interest is making Money.

Outwest! You don’t have a down payment! That is your first mistake! Save and buy on the dips, as anyone can buy at the top!