What is the standard maximum amortization period for an insured homeowner mortgage when no borrower is a first-time home buyer and the home is not newly built?
Correct Answer
D) 25 years
The standard maximum amortization for a high-ratio insured mortgage is 25 years under s. 5(1)(c) of the Insurable Housing Loans Regulations, and insured low-ratio purchase loans are also capped at 25 years (s. 6(1)(g)). The 30-year extension applies only to first-time home buyers or newly built homes, so without either the limit is 25 years.
Why This Is the Correct Answer
This is correct because, with no first-time buyer on the application and a home that is not newly built, the standard 25-year maximum of the Insurable Housing Loans Regulations applies, and the 30-year exception is not available.
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A buyer who is not a first-time home buyer is purchasing a newly built home with 10% down. What is the maximum amortization period allowed for the insured mortgage?
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Under current federal rules, what is the longest amortization period any high-ratio insured homeowner mortgage in Canada can have?