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Interesting. In Canada you can only get up to 5 years fixed typically. Mortgage itself is 25 years but terms change every 5 usually. 30y fixed feels... Crazy. H
by NikolaNovak 5y ago
Interesting. In Canada you can only get up to 5 years fixed typically. Mortgage itself is 25 years but terms change every 5 usually. 30y fixed feels... Crazy. How much above market does it have to be for banks to take that risk??
- makomk 5y agoThe banks don't take the risk of offering such long-term fixed rates. The US government does through Fannie Mae and Freddie Mac, effectively subsidising the mortgage market. Other countries don't do this and don't have the same kind of long-term fixed mortgages as a result.
- jen20 5y ago> The US government does through Fannie Mae and Freddie Mac, effectively subsidising the mortgage market. For so-called "conforming" loans (647k USD this year), the equivalent of which would be enough to buy a nice house almost anywhere in the UK except London, the nicer parts of the Home Counties or the South West.
- NikolaNovak 5y agoGeebus. How did I never pick up on that juicy tidbit during 2008 coverage. That's both awesome and insane
- vxNsr 5y agoPeople with a low risk profile today get 2-4% fixed rate. What’s it like in Canada?
- NikolaNovak 5y agoSimilar. But not for 30 freakin years - we all know rates will shoot up!