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Announcement of 25 year Maximum Amortization slows real estate sales


Blog by Mike Alleyne | February 23rd, 2016


Financial analysts in Ottawa have been eyeing the hot condo market in Toronto and other Canadian cities with concern for some time.
To cool things down they made changes to amortization periods for government insured mortgages. The history of the changes to these mortgages are:

  • From maximim 40 years to 35 years in 2008
  • From maximum 35 years to 30 years in 2011
  • From maximum 30 years to 25 years effective July 9, 2012

Although this move provides longer term stability and reduces foreclosures http://business.financialpost.com/2012/06/21/ottawa-cuts-mortgage-amortizations-to-25-years it also has an effect on the housing market. In particular, hardest hit is the hottest moving condo markets such as Vancouver (and surrounding areas such as Surrey, South Surrey, Langley, North Vancouver, White Rock, Coquitlam, Port Moody, Ladner, Tsawwassen) and Toronto.
BC realtors are finding the summer of 2012 to be the quietist market since 2008.