Tag Archive for: small business operator

Death of 40-year mortgage!

I could not have said it better my self so here is the article in it’s entirety.

Cheers,

Pat

 

Entrepreneurs’ flexible finance scheme quashed

Tony Wanless, Financial Post Published: Monday, July 21, 2008

For sale signs lined up along the street on Country Village Landing N.E. for condos in this Calgary, Alta. neighbourhood.Dean Bicknell/Canwest News ServiceFor sale signs lined up along the street on Country Village Landing N.E. for condos in this Calgary, Alta. neighbourhood.

When Canada Mortgage and Housing Corp. (CMHC) recently announced it was no longer backing 40-year amortization mortgages, it presumably was attempting to put some order into the teetering housing and mortgage markets. In the process it quashed the hopes and dreams of thousands of Canadian entrepreneurs who had rallied to the new mortgage as a flexible method of financing small businesses.

The 40-year mortgage was initiated by lenders last year as home prices climbed to levels that put monthly payments out of reach

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