Consider this recent statement by a bank spokesperson: “Choosing a shorter amortization is the most responsible approach to home financing. It’s something we have been encouraging our customers to consider for years, as it means becoming debt-free sooner.”
How wise is that advice? Do longer mortgage repayment periods truly cost you more, all things considered?
In some cases the answer is unequivocally no. Longer amortizations, which spread your payments over 30 or 35 years instead of the traditional 25, can cost you significantly more in mortgage interest.
Click here to consider four scenarios where “longer” is actually better courtesy of the Globe and Mail.