Glad to hear that your Royal LePage guy is helpful. Thanks for the kind feedback.

We are about as progressive as Saskatchewan has been in the past. In many ways, our province learned our social ideals from yours.

Although I doubt I’ll need such protections, Manitoba and especially the area I’m in doesn’t play the bubble game. Slow, sound and patient decision making with all the facts will win through.

Alex is in Manitoba.

I just used the html insert image tag. I don’t mind if anyone posts appropriate images.

Depending on whether you’ve taken out a HELOC or refinanced, your “escape costs” could be zero (aside from a rather large blemish on your credit rating). My understanding is that if you refinance with another institution you may lose this protection, so it would be worth investigating from a legal standpoint before proceeding with any new lender.

I’ll definitely do that and I’ll be finding out at least what my “escape costs” are. I don’t have a mortgage broker at this point, so I’d be dealing with my mortgage provider directly.

That said, I have good advice from my local Royal LePage guy

(Does everyone at Royal kick so much ass?)

That true, and I don’t think anyone is trying to argue that housing in Saskatchewan, or almost anywhere else in Canada is “affordable” by traditional measures. I did notice though that Saskatoon’s numbers are considerably better than those of the province. I suspect that’s due to higher average incomes within the urban areas?

Alex,

January 2007? That’s not making sense to me man! I think if you check your paper trail you’ll find it was January 2008(?) This blog started in November 2006 and I didn’t ever hear from you until into 2007 at some point.

Here’s what I’d do. Call your mortgage person and ask for the details of your mortgage. Interest rate, remaining term, balance at the end of the term, etc. Once you have that you can play on some mortgage calculators and do some “what if” scenarios. What if rates go to X? Remember, your initial plan was to handle the mortgage as if it were a shorter term mortgage? What is you throw down an extra $100 a month for the next three years? Ask your Realtor for a ballpark value in today’s market and you can do some what ifs there as well.

You purchased a decent entry level home at a good price before values went crazy. Manitoba is more affordable than most. I suspect that you’re fine. I think these exercises will help you feel better.

Alex, “25 year amortizations are next to impossible for most people to sustain with current house prices.” Not too mention 25% equity (I think 5-10% is more common).

What I consider to be affordabile is 30% of household income servicing a 25 yr amortized mortgage + taxes + utilities.

Depending on how RBC crunches numbers, and banks tend to change the way they do it time to time. 32% servicing a 35yr amortized mortgage + taxes + utilities is not affordabile (not in your best interest).

35yr amortization is a recent “financial innovation”, it does not have a proven track record in the marketplace like 25yr amortization, and is not the norm as many homebuyers may be lead to believe.

Has any homebuyer ever paid off a mortgage with 35yr amort?

In this particular study, “affordability” is measured by the percentage of household income required to service debt, pay taxes and utilities on several predefined types of homes at various levels. 32% of income is considered affordable.

It seems as soon as you travel towards the middle class, the wheels fall off the bus.