The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

wu = 2 Q = z a Thursday, November 24,2022 | 40 ; = AN EXTRA FIVE YEARS a MIGHT NOT SEEM LIKE 3 = MUCH. BUT THE 5 DIFFERENCE CAN BE lan SAYS ONE SRIVINDHYA KOLLURU Rising interest rates are mak- ing it challenging for Canadian homeowners to afford their big- gest asset, leaving them scram- bling for options. Jordann Kaye, spokesperson at Zolo Realty, says if you have less than 20 per cent equity in your home, the longest amortiza- tion you can choose is 25 years. If, however, you have more than 20 per cent equity, you can extend your amortization to 30 years. Do- ing this will help lower your monthly payments in the short term. One downside of doing this, ex- lains Kaye, is that spreading your mortgage balance over a longer period means you'll pay more interest over the long term. “While an extra five years might not seem like much, the differ- ence can be startling if: you havea large mortgage balance. ye offers an example: Ifyour mortgage is $500,000 amortized over 25 years at 5.24 per cent, your monthly payment be $2,976.71, and you'll pay $393,014in interest over the life of the loan. Ifyou extend your loan term to 30 years, your monthly payment will drop to $2,740.52, but the in- terest you'll pay over the life of your loan rises to $486,587, which works out to a difference of $93,573. Another drawback to extend- ing your amortization is length- ening the time to mortgage free- dom, says Kaye. It's important to consider when your mortgage will be paid off before extending your amortization: Will it be after you retire or before? Are you planning to retire with enough in- come to cover a mortgage? If not, ow will extending your mort- gage im impact your oi eath, mai ig direc. tor at ( Obiective Financial Part- ners, agrees. "This can mean you're unable to pay down ¢ debt before you retire, which c: pact your long-term financial health." Finally, if you plan to extend your mortgage amortization at a time other than renewal, you'll you to requalify for your mort- age at today's rates and may re- quire you to pay some fees. | NEED TO LOWER MY MONTHLY MORTGAGE PAYMENTS. IS EXTENDING MY AMORTIZATION PERIOD A GOOD IDEA? Dreamstime photo If you plan to extend your mortgage amortization at a time other than renewal, you'll have to refinance, which requires you to requalify for your mortgage at today's rates. As heard on NEWSTALK 1010am insidehalton.com a A fa Roofing and Home Renovations Simply put, we make it easy. Not only have we established ourselves as experts in the roofing industry across the GTA, we also specialize in home renovation projects. The upside? Install, restore or repair your roof, but, also have the peace of mind knowing we'll be by your side when it comes to in-home renovations and designs. We are a complete full service company with expertise in everything home related. ¥ Full Roof Installations ¥ Roof Insulation and Attic Upgrades ¥ Siding Y Gutters ¥ Eavestroughs, Soffit and Fascia ¥ Roof Repairs ¥ Ventilation Upgrades ¥ Flat roofs ¥ Skylights & Tunnels *financing available ¥ Home Renovations ¥ Washroom & Kitchen ¥ Canopies & Railings Y Decking & Fencing ¥ Mobility & Ramps ¥ Windows & Doors ¥ Painting & Decorating ¥ Landscaping ¥ Carpentry Call us for a FREE ESTIMATE! ¢ (905) 795-0212 « letitrain.ca