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
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