Housing bubble to intensify and amortization periods staying the same

The housing bubble could see its comeback accelerate on Monday (May 15), writes Robert McLister. That’s when the Canadian Real Estate Association releases its April resale data, and national home sales and prices could shift into high gear.

The housing bubble could see its comeback accelerate on Monday (May 15), writes Robert McLister. That’s when the Canadian Real Estate Association releases its April resale data, and national home sales and prices could shift into high gear.

National average home values had never had a 25-per-cent correction – until this year. That’s a problem for those planning to buy during this dip. So what do you do if you’re one of them and the boat has already left the dock? Read McLister’s weekly column to find out.

Canada’s federal mortgage insurer is not in favour of extending the maximum amortization period for new mortgages. CMHC says extending amortization to cut down monthly payments would also stoke demand and spur higher home prices, reports Rachelle Younglai. Currently, borrowers have 25 years to pay down their mortgage if their down payment is less than 20 per cent.