A BMO survey showed that 69% of Canadians are open to the idea of a shorter amortization. 

“While the purchase of a home represents an important investment for many Canadians, those looking to get into the housing market now or in the near future should be considering financially responsible options, such as a 25-year amortization, to ensure they can pay down debt faster and begin saving more for their long-term goals,” said Martin Nel, Vice President, Lending and Investment Products, BMO Bank of Montreal. 

“Canadians should be realistic in measuring what they are able to afford when it comes to the purchase of a home. Taking on a larger mortgage with a longer amortization in order to afford a ‘faux chateau’ will mean carrying the debt load longer and ultimately paying more in interest over the full term.”

Click here to read the BMO press release.