5 ms·

We have fixed interest rate mortgages in Canada, but the fixed rate is only valid for a specific period (typically 5 years). After this, the mortgage needs to b

by Sanzig 5y ago

We have fixed interest rate mortgages in Canada, but the fixed rate is only valid for a specific period (typically 5 years). After this, the mortgage needs to be either renewed for another term at then-current rates, or transferred to a new lender.

pc86 5y ago
We have these in the US too, they're called adjustable-rate mortgages.
- sgerenser 5y ago
  Yes, but hardly anyone uses them because fixed rate mortgages are so much better of a deal in most cases. The government owned guarantors (Fannie/Freddie mainly) are the main reason that 30 year mortgages can be offered at such low rates in the U.S.
  - pc86 5y ago
    My point was that the things they're calling fixed-rate mortgages are in fact not fixed-rate mortgages.
forgingahead 5y ago
Sure, fixed term for a short period is normal everywhere. But a fixed term for the entire length of the mortgage, whereby mortgage terms are commonly 30 years long, are only seen in the US and Denmark. Here's some more detail on this: https://www.netinterest.co/p/financing-the-american-home https://www.netinterest.co/p/financing-the-american-home
- irishsultan 5y ago
  > But a fixed term for the entire length of the mortgage, whereby mortgage terms are commonly 30 years long, are only seen in the US and Denmark. Strange, because I have a fixed term for the entire length of my mortgage and I'm not living in those countries. Admittedly it's for a length of time shorter than 30 years, but even at that timeframe it would be possible to get one. There is however one additional modifier in the statement of the article: "fully prepayable", that may not exist anywhere outside of Denmark and the USA (but still, your source doesn't really explain where it got it's list of countries that have it, so I have no way to know it's correctness).
- jacquesm 5y ago
  You can add the Netherlands and many other European countries to that list.

by Sanzig 5y ago

pc86 5y ago

We have these in the US too, they're called adjustable-rate mortgages.

sgerenser 5y ago
Yes, but hardly anyone uses them because fixed rate mortgages are so much better of a deal in most cases. The government owned guarantors (Fannie/Freddie mainly) are the main reason that 30 year mortgages can be offered at such low rates in the U.S.
- pc86 5y ago
  My point was that the things they're calling fixed-rate mortgages are in fact not fixed-rate mortgages.

forgingahead 5y ago

Sure, fixed term for a short period is normal everywhere. But a fixed term for the entire length of the mortgage, whereby mortgage terms are commonly 30 years long, are only seen in the US and Denmark. Here's some more detail on this: https://www.netinterest.co/p/financing-the-american-home https://www.netinterest.co/p/financing-the-american-home

irishsultan 5y ago
> But a fixed term for the entire length of the mortgage, whereby mortgage terms are commonly 30 years long, are only seen in the US and Denmark. Strange, because I have a fixed term for the entire length of my mortgage and I'm not living in those countries. Admittedly it's for a length of time shorter than 30 years, but even at that timeframe it would be possible to get one. There is however one additional modifier in the statement of the article: "fully prepayable", that may not exist anywhere outside of Denmark and the USA (but still, your source doesn't really explain where it got it's list of countries that have it, so I have no way to know it's correctness).
jacquesm 5y ago
You can add the Netherlands and many other European countries to that list.