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1h ago

NAR Prioritizes Supply as 50-Year Mortgage Idea Draws Cost Warnings

Experts say the loans offer small monthly relief at the cost of much higher lifetime interest.

Despite a recent proposal by Donald Trump to allow 50-year mortgages in the U.S., it's unlikely that idea would gain traction anytime soon in Canada, where amortization periods have been shortened over the last two decades.
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Overview

  • President Trump proposed giving homebuyers the option of 50-year mortgages to lower monthly payments.
  • FHFA director Bill Pulte said the agency is working on the concept, which remains at a conceptual stage.
  • Investopedia’s example on a median-priced home showed roughly $100 in monthly savings at an assumed higher rate, with far greater total interest over time.
  • Realtor.com’s Joel Berner cautioned that longer terms slow equity building and could lift home prices by boosting demand without adding supply.
  • At NAR’s NXT conference, leaders said their focus is increasing inventory and warned a 50-year loan would not be the right fit for many buyers.