15 February 2011
Last time the government cut high-ratio amortizations from 40 to 35 years (October 2008), banks applied the lower limit to conventional amortizations as well.
Not so many prime lenders kept 40-year amortizations after October 2008. It’s interesting to note that we still have some lenders offering it. In addition to it, they will also keep 40-year conventional amortizations even after March 18.
40 years amortization can be very handy for well qualified borrowers if buying rental/investment properties for example to reduce monthly expenses.