24 Year Mortgage Calculator – Canada
Here’s a comprehensive table summarizing key information about 24-year mortgages in Canada:
| Aspect | Details |
|---|---|
| Term Length | 24 years (288 months) |
| Availability | Less common than 25-year mortgages, but offered by some lenders |
| Maximum Amortization | 25 years for insured mortgages, 30 years for uninsured |
| Minimum Down Payment | 5% for homes $500,000 or less; 10% for portion between $500,000 and $999,999; 20% for $1 million+ |
| Mortgage Insurance | Required if down payment is less than 20% |
| Interest Rates | Generally similar to 25-year mortgages; can be fixed or variable |
| Payment Frequency Options | Monthly, bi-weekly, accelerated bi-weekly, weekly, accelerated weekly |
| Prepayment Privileges | Vary by lender; typically 10-20% of original principal per year |
| Portability | Often available, allowing transfer of mortgage to a new property |
| Refinancing | Possible, subject to lender’s terms and conditions |
| Blended Payments | Consist of both principal and interest |
| Interest Calculation | Typically compounded semi-annually, not in advance |
| Total Interest Paid | Less than a 25-year mortgage, but more than shorter-term mortgages |
| Monthly Payments | Higher than 25-year mortgage, lower than shorter-term mortgages |
| Qualification | Must pass mortgage stress test at higher of 5.25% or contract rate + 2% |
| Impact on Affordability | Allows for slightly higher borrowing amount compared to 25-year mortgage |
| Debt Service Ratios | GDS typically 32-35%, TDS typically 40-42% |
| First-Time Home Buyer Incentives | May be eligible for CMHC’s First-Time Home Buyer Incentive |
| Tax Deductibility | Mortgage interest generally not tax-deductible for primary residences |
| Renewal Process | Similar to other mortgage terms; opportunity to renegotiate at end of term |
| Early Payout Penalties | Typically 3 months’ interest or Interest Rate Differential (IRD), whichever is higher |
| Convertibility | Some variable-rate mortgages can be converted to fixed-rate |
| Assumability | Some mortgages may be assumable by a qualified buyer |
| Mortgage Life Insurance | Optional but often recommended |
| Property Taxes | Can often be included in mortgage payments |
| Impact on Retirement Planning | Shorter amortization may allow for increased retirement savings |
| Lender Options | Available from major banks, credit unions, and alternative lenders |
This table provides a comprehensive overview of 24-year mortgages in Canada, covering key aspects such as eligibility criteria, payment options, financial implications, and important considerations for homeowners considering this mortgage term. It’s important to note that specific terms and conditions can vary by lender, and borrowers should consult with mortgage professionals for personalized advice.