A repeat buyer, not a first-time home buyer, is purchasing a resale home with 10% down. What is the maximum amortization period allowed for the insured mortgage?
Correct Answer
A) 25 years
Under s. 5(1)(c) of the Insurable Housing Loans Regulations, a high-ratio insured mortgage may be amortized over at most 25 years. The 30-year exception in s. 5(1.1) applies only if a borrower is a first-time home buyer or the home is newly built, and neither is true here, so the maximum is 25 years.
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