Mortgage Amortizations pushed back to 25 Yrs., like it used to be.

The government has decided to thin the herd of buyers by lowering the maximum amortization period to 25 years from 30 for people who require mortgage insurance because of a small down payment. This means higher monthly or biweekly mortgage payments, which will keep marginal buyers on the sidelines until they either save more or make more. Most first-time buyers go with an amortization of 30 years today.
Moving to 25 years isn’t draconian , says Les Sohar of sohar.ca and soharworldhomes.com.,"that was the unquestioned standard for the decades that preceded the increased amortization periods introduced several years ago". The government is also putting limits on mortgage refinancings by capping borrowing at 80 per cent of a property’s value, down from 85 per cent.
The government could have been tougher here, says Sohar. In my brokerage, Re/Max this will have limited effects and I remain enthusiastic about the use of refinancings as well as normal market applications and has not contributed to high levels of indebtedness, directly.