Why a 30-Year Amortization for First-Time Buyers is a Smart Move—Not ‘Forever Debt’

The recent rule change allowing first-time buyers to access 30-year amortizations is a positive shift for affordability, despite some critics calling it “forever debt.” Here’s why that criticism doesn’t hold up.

1. Lower Monthly Payments = More Flexibility
Extending the amortization reduces monthly payments, making homeownership more accessible. With housing costs high, this can be the difference between renting indefinitely and building equity in a home.

2. Canada’s Mortgage Terms Are Shorter Than Amortizations
Unlike in the U.S., where borrowers lock in 30-year fixed rates, Canadian mortgages typically have terms of 1-5 years. This means homeowners will renew their mortgage multiple times, often adjusting based on their financial situation. A 30-year amortization is an initial structure, not a lifelong commitment.

3. Extra Payments Can Shorten the Loan
Most Canadian mortgages allow prepayments or increased payments, meaning buyers can pay off their mortgage faster when financially comfortable. Many homeowners do exactly that once their income rises.

4. Renting Can Be More Expensive
Critics say longer amortizations mean more interest over time. That’s true—but renting means 100% of your payment goes to someone else’s equity. A longer mortgage may cost more in interest, but it still builds your own wealth instead of a landlord’s.

At the end of the day, this policy gives first-time buyers more options. It’s not about “forever debt”—it’s about getting a foot in the market while maintaining financial flexibility.

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