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I've heard first time buyers being advised to stay away from long amortizations, Why. It is because the interest you pay is way too high and it is not a good idea I'm told. Once again I go back to the simple plan....What is best for YOU.
Lets look at the upside and down side......

Sceptics will be pleased that I agree the interest paid over a 40 year compared with 25 year is not a good strategy. However, is this what people do, get one mortgage and pay it off as per the original amortization.....No. You are likely to sell and purchase or refinance in less than 10 years.

The reason the longer term amortization is becoming more popular is obviously lower monthly payments and therefore allows you to qualify for a larger mortgage and home purchase. There is a price for this, on high ratio every 5 years greater than 25 year amortization costs .20%. This is added to the Insurance premium and added to the mortgage amount. So no upfront cost but added cost/loss of equity. On conventional there is typically no cost but could be limited to 35 years in some cases.

If you used the Accelerated Bi Weekly payment option on a 40 am you would be left with an effective amortization of 30.5 years. What this means is that the 25 year mortgage takes 25 years and the 40 year with Bi weekly will be paid off in 30.5 Years. It is more common that a monthly payment strategy is chosen simply for the fact it is the cheapest. If you want to pay down your mortgage as fast as possible you will not be looking at a 40 year am.

Here is an interesting scenario, take the money you save with longer am..invest it in lets say RRSP's.. receive tax break and increase in value...check in 10 years...which makes more sense?? Buy more house with a longer amortization...wait 10 years..calculate interest loss versus appreciation of house value( difference longer am allowed for purchase)???

The skinny is they have an upside and a downside, what is important is what makes sense to you.