Genworth Financial Canada To Make Homeownership More Affordable By
Insuring 30- and 35-Year Mortgages
Toronto, March 16, 2006 – Genworth Financial Canada today acted to help potential
homebuyers with concerns about affording monthly mortgage payments, saying it would begin
insuring 30- and 35-year loans.
The extended mortgage amortization period reduces a borrower’s monthly mortgage payment,
enabling more buyers to afford a home of their own and increasing the choices available to
them. Buyers could reduce their monthly payments by as much as $300 per month on a
$400,000 loan at six percent interest. The principal and interest payment would be $2,559 on a
25-year mortgage, $2,379 on a 30-year mortgage and $2,261 on a 35-year mortgage.
“In 2005, house prices across Canada increased by an average of 9.8%. In some communities
affordability has been stretched," said Peter Vukanovich, president of Genworth Financial
Canada. “Genworth is committed to introducing innovative products to help Canadians buy
homes sooner. Insuring mortgage loans with extended amortization periods will enable buyers
to keep monthly costs affordable even as both interest rates and home prices continue to rise."
Genworth makes low down payment loans possible by protecting mortgage lenders against the
risk of borrower default. Insurance for loans under the new 30- and 35-year mortgage
amortization program will include a 0.20% premium surcharge for every five years of
amortization beyond the traditional 25-year mortgage period.
The new 30- or 35-year amortization option gives homebuyers the flexibility of reducing their
monthly mortgage payments for the initial years of homeownership while managing overall
interest cost over the life of a mortgage. They can reduce the number of years it takes to pay off
their mortgage, and the interest paid, by choosing bi-weekly mortgage payments, increasing
monthly payments over time, and taking advantage of lump sum prepayments.
Genworth will offer the extended amortization feature on selected insurance products. See your
Mortgage Professional about which products qualify or visit Genworth’s website at
www.genworth.ca
About Genworth Financial Canada:
Genworth Financial Canada, the Homeownership Company, works with lenders, mortgage
brokers, real estate agents and builders to make homeownership more affordable and
accessible throughout Canada. The company combines global experience in mortgage
insurance with technological and service leadership to deliver innovation to the mortgage
marketplace.
Additional information about Genworth Financial Canada is available at www.genworth.ca or
through mortgage agents. This news release was provided by David Cooke, Mortgage Agent . Visit his website at http://mortgagealliance.ca/davidcooke or call 403-836-1201
Disclaimer: All information on this site is provided for informational purposes only! By no means is any
information presented herein intended to substitute for the advice provided to you by any health care or other professional
or organization.
tweet this!