CMHC to Insure 30 Year Mortgages on a Pilot Basis

Canada Mortgage and Housing Corporation (CMHC), working with FirstLine Mortgages, will be offering homeowner mortgage loans amortized up to 30 years as part of a pilot project to improve access to home ownership and choice for Canadians.

"The availability of extended amortization periods will improve access to home ownership for Canadians by lowering monthly principal and interest costs," said Karen Kinsley, President of CMHC. "It is part of our ongoing commitment to ensure that Canadians have access to quality, affordable homes. We are constantly working to extend home ownership eligibility to a larger number of Canadians."

The four-month pilot, which begins March 3 and runs until the end of June 2006, will also be available through any other lenders who wish to participate in the pilot. CMHC will assess the pilot results and then determine whether this will be a permanent program. Generally, 25 years has been the maximum amortization period permitted for CMHC-insured mortgages.