GE Money, the Canadian consumer-lending unit of General Electric Co. today launched a 40-year amortization option to its mortgages, becoming the first lender to do so in Canada.

The 40-year amortization option is designed to help combat rising home prices and enable individuals to enter the housing market while helping to manage cash flow.

Currently, GE Money mortgages are offered via brokers in Ontario, Alberta and British Columbia.

“Offering a broader list of products and options is part of our growth strategy,” says Rick Lunny, president of GE Money Mortgages. “A 40-year amortization follows our goal of providing mortgage products to those for whom the rising cost of real estate or their credit situation is a barrier to entering the market.”

GE Money mortgages are primarily directed to consumers who may find it difficult to qualify for traditional bank-originated mortgage loans. These include individuals who have recently immigrated to Canada, are self-employed, or have less-than-perfect credit.

“The GE Money 40-year mortgage helps bring down the customer’s monthly payment which gives many new homebuyers the option to enter the housing market sooner, purchase a larger home, or a home in a market where real estate prices are rising rapidly,” adds Lunny. “It can also act as a short-term solution to assist individuals through difficult financial times.”

The first in Canada to offer both 30- and 40-year amortizations, GE Money introduced its mortgages in October and plans to offer them nationwide by the end of 2006.