Categories right here. On behalf of the auxiliary, today I'm going to talk about a question I get asked frequently. And that question is: How does amortization affect my monthly payments and my overall cost of borrowing? Well, for starters, the longer you advertise a debt over, the more interest you'll pay in the long run. But there are times when you may want to do this, and we'll talk about that in just a moment. But first, let's consider high ratio mortgages. In other words, when you have less than twenty percent down, the maximum amortization you can have is up to 25 years. Of course, you can have less than 25 years, but 25 is the maximum. On the other hand, when the mortgage is conventional, meaning you have at least twenty percent down, you can have advertised amortizations typically of 25 years. I've even seen some lenders offering 30 year amortizations. And believe it or not, there are a couple of lenders going up to 40 years. As I mentioned earlier, the interest cost is more expensive over time when you advertise it over a longer period. So why would you want to do it? Well, if you have an investment or something else that you can put the additional cash flow into, that would make more sense than paying off the mortgage costs. Another option is to contribute to your RRSP and get that tax refund which can be utilized in a more beneficial way. There may also be other loans or debts with higher interest rates that you may want to pay off. The bottom line is, whatever your situation may be, we're here at auxiliary to help figure it out for you. Auxiliary means to assist and support, and that's what we do here day in and...
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