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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[โ€“] Inky@lemmy.ca 4 points 1 year ago (1 children)

The higher rates more than negate any benefit to monthly payments of extending the amortization. I have no idea why someone would choose this.

[โ€“] affairesdepiasses@lemmy.ca 3 points 1 year ago

The only reason I can see is that the mortgage isn't funded by Equitable Bank but by a third-party lender. So I wonder if this is a way to circumvent the lending ratios on mortgages, which would allow people to qualify for higher amounts despite the higher interest rate.