The 40-Year Rush

On October 15, 2008, barring any surprises, there will be no more lenders offering insured mortgages with 40-year amortizations or no money down.  (See previous story)

It's therefore not a stretch to expect a rush of mortgage applications leading up to this date.

The rush will likely be greatest in cities where 40-year borrowers congregate due to high prices (e.g.  Calgary, Vancouver, Toronto).

Invis's, Gary Siegle, says, "The word is out and as long as lenders are continuing to offer 40-year amortizations until October, you're going to see probably a rush into the marketplace."  He says 40-year ams are "definitely much more popular in the higher-priced markets because it's really the only way people can qualify."

The Mortgage Centre's, John Panagakos, agrees and says, "I am very sure there will be a rush of buyers and brokers and lenders rushing to get in before the deadline."

Siegle estimates half of Invis's Calgary clients in the last year chose 40-years, and zero-down mortgages were almost as popular.

Quotes via:  Globe & Mail, Calgary Herald