The Canadian housing market is in a tricky spot, especially when it comes to condos. Many people find it hard to buy a home due to high prices and interest rates. To help with this problem, there's talk of extending mortgage amortizations to 30 years. This means people could take longer to pay off their loans, making monthly payments smaller. However, it's unclear if this will solve the housing crisis or just make it worse.
One of the main concerns with extending amortizations is that it might make homes even more expensive. If monthly payments are lower, more people might be able to afford to buy a condo, increasing demand. With more buyers in the market, prices could go up even higher, making it harder for first-time buyers to get a foot in the door. This could end up pushing the dream of owning a home even further out of reach for many Canadians.
Another issue is the long-term financial impact on homeowners. While lower monthly payments might seem like a good idea, paying off a mortgage over 30 years means more interest paid over time. This could make homes much more expensive in the long run. People might end up spending a lot more money on their homes than they initially planned, which could lead to financial stress down the road.
Overall, while extending mortgage amortizations to 30 years might offer some immediate relief, it may not be the best solution for the housing crisis. It could drive up home prices and lead to more financial problems for homeowners. To really solve the housing crisis, a more comprehensive approach is needed, addressing both the supply of affordable homes and the financial health of Canadian families. For more details on this topic, you can read the full article [here](https://financialpost.com/real-estate/30-year-amortizations-housing-crisis).
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