What going from 30 years to 25 years means

Here's is a rough idea of what going back to 25 years as opposed to 30 years will do in regards to purchase power and payments.

This is based on the assumption of good credit and no outside debt.

In the past four years my average mortgage amount is roughly $291,000 (this is kind of the norm south of the Fraser)

You would need an income of $48,500 to qualify for this amount of a mortgage. The payment based on today's 3.09% would be $1,241 with a 30 year amortization.

A 25 year amortization will need an income of $53,000 to qualify for this same amount. It will also increase your payment by roughly $150/m

If you have the income of $48,500 you would now only qualify in the amount of $259,000 which means, $32,000 less of a home.

I'm not entirely for or against the reduced amortization. There's pro's and con's to both and honestly when I started out, all we had was 25 years! Yes, I'm starting to become one of the seniors.


Please note: the above numbers are not perfectly accurate however, are deemed to be very close. Everyone is slightly different and there are other variances that can change the numbers i.e. Insurance premiums, actual property tax payments and strata payments etc.