Canadian Mortgages Stretching Further
A recent CIBC survey that was conducted by Angus Reid finds out that Canadians are stretching their mortgages one year further than previously thought a year ago. 58 is the new mortgage-free freedom age on an average. However, based on where you look at, the picture can be very different.
Here are some of the highlights from this survey:
– 55 percent of Canadians making extra efforts are paying their mortgage faster. It was 68 percent last year.
– Homeowners in British Columbia have the highest expected age to pay off mortgages at 66.
– In Alberta, Ontario, and Quebec the expected age to pay off mortgages is 55, 57, and 56.
– Alberta and Ontario have the highest percentage of homeowners taking extra steps to pay off their mortgages faster at 65 and 61 percent.
– British Columbia (47 percent), Quebec (48), and Atlantic Canada (48) have the lowest percentage of homeowners taking extra steps to pay off their mortgage faster.
– Small efforts can go a long way to save big time.
– For example, someone with a $250,000 mortgage (25 year at 4.99 percent interest) can save about $35,000 if they add $147 to their monthly payments.
– Nearly $30,000 on interest can be saved if the above owner makes $726 payments every two weeks, instead of one monthly payment.
– If the average Canadian tax refund ($1,600) is applied towards a mortgage every year, it would save 4 years amortization and save about $33,103 in interest.
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