correct me if I'm wrong, mortgage 25yr vs 30yr
It's my understanding that in Canada I can get a 30yr mortgage assuming I have 20% down (no CHMC). I understand that with a 25 year mortgage the payment is higher than a 30 and with a 30yr you end up paying quite a bit more interest. However, my thinking is that I'd like to take out a 30yr mortgage but then willingly increase the mortgage payment amount to that of the 25yr rate which gives me more flexibility down the road because if we ran in to money problems I have the ability to reduce the payment back to the original 30yr base payment. Is there any downsides to using a method like this assuming the increased payment is done for the majority of the mortgage?
Essentially I'm wondering if it's best to go with the lowest possible mortgage payment but be vigilant on increasing the payment to lower the amortization period as I see fit?
Essentially I'm wondering if it's best to go with the lowest possible mortgage payment but be vigilant on increasing the payment to lower the amortization period as I see fit?