BC Prices Supported by 40-year Ams.

If you’re a rookie homebuyer in British Columbia, odds are you’ll choose a mortgage with a 40-year amortization.  That’s apparently what it takes for most 1st-timers to qualify these days.  25-years, the long-time standard, no longer cuts the mustard.

BC is Canada’s #1 province for 40-year and high-ratio (< 20% down) mortgages.  That’s largely because their $452,810 average home price is highest in the nation.

Moreover, Andrey Pavlov of Simon Fraser U. says 40-year amortizations are supporting house prices there.  Without them, he says, prices would fall.

Frightening thought!