this post was submitted on 24 Oct 2023
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affairesdepiasses@lemmy.ca
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Equitable Bank unveils 40-year amortization mortgage (ON, BC, AB) (www.canadianmortgagetrends.com)
submitted 1 year ago* (last edited 1 year ago) by affairesdepiasses@lemmy.ca to c/personalfinancecanada@lemmy.ca
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[–] affairesdepiasses@lemmy.ca 12 points 1 year ago* (last edited 1 year ago) (6 children)

Although exact pricing was not yet available, rates are expected in the 9% range given that this is an uninsured alternative lending product with an extended amortization and potential higher risks

Can you feel affordability flowing?

EDIT : Just for fun, I ran the numbers :

• Loan of $500,000 at 7% over 25 years: monthly payment $3,534, total interest $560,169

• Loan of $500,000 at 7% over 30 years: monthly payment $3,327, total interest $697,545

• Loan of $500,000 at 9% over 40 years: monthly payment $3,857, total interest $1,351,268

I don't even understand the existence of this product...

[–] jadero@lemmy.ca 4 points 1 year ago

Madness.

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