Recently on Radio 104.7 Outaouais, our expert Patrick Dumond, a mortgage broker with Multi-Prêts, addressed a topic that has been generating a lot of discussion: the idea of extending mortgage amortizations to as long as 50 years. This proposal, recently mentioned in the United States, raises many questions for the Canadian market.
A Very Different Context Between Canada and the United States
In the United States, the idea of a 50-year amortization is being discussed as a way to improve access to homeownership, but the way mortgages are managed there is very different from Canada. Interest rates are often tied to the amortization period, and borrowers typically keep the same rate for a very long time. The government is also exploring new ways to stimulate construction and support first-time buyers.
In Canada, the situation is quite different. Many homeowners renegotiate their mortgage several times over the years, allowing them to adjust their strategy based on market conditions. They can modify the term, choose between variable or fixed rates, and adapt their mortgage product to suit their needs.
Lessons from the Past: A Real Risk of Overheating
Patrick points out that Canada has already experimented with a similar approach. In 2008, amortizations of up to 40 years and even 0% down payments were allowed. The result was accelerated price growth and households borrowing beyond their true capacity.
This is why, for now, Canada is not considering a 50-year amortization. The most recent measure, available since December 2024, allows first-time buyers to amortize up to 30 years, an option that is already proving to be very popular.
And for You: Is Extending the Amortization a Good Idea?
Every financial situation is unique. A longer amortization can reduce monthly payments, but it also increases the total interest paid and slows equity building.
To determine the most advantageous strategy for your situation, a Multi-Prêts mortgage broker can help you analyze your options, understand the impact of different amortization periods, and choose a solution that supports your real estate goals, both today and over the long term.