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The article is about Canada, which has 5 years maximum mortgage term. After 5 years, you need to renew your mortgage at whatever interest rates are currently av
by auxym 5y ago
The article is about Canada, which has 5 years maximum mortgage term. After 5 years, you need to renew your mortgage at whatever interest rates are currently available.
- refurb 5y agoYup. If housing drops and/or interest rates climb it will get interesting in Canada: - you basically refinance every 5 years at max. If you’re underwater on a house, the bank will ask for cash to hit the desired loan-to-value. - If rates go up you’ll need to be able to afford the higher payments or no mortgage. Luckily they are doing a “stress test” and you need to qualify at 5.XX% today. So there is buffer. - most of Canada has recourse loans. If you sell and don’t pay off the mortgage, the bank can come after you for the difference.
- throw0101a 5y ago> which has 5 years maximum mortgage term. Not maximum, but most typical. You can get, e.g., 10 year mortgages: * https://www.ratespy.com/best-mortgage-rates https://www.ratespy.com/best-mortgage-rates