That makes more sense. The OP talking about lower monthlies combined with a balloon payment and then people moving at the end of the term, strongly implies defe

That makes more sense. The OP talking about lower monthlies combined with a balloon payment and then people moving at the end of the term, strongly implies deferring principal such that it never actually gets paid off. Further, the OP made it sound like a lower monthly payment is a given. In fact, as you note, that's only true when rates are not rising. The OP (and lots of homeowners, apparently) is going to be in for a surprise as the most recent cohort of Canadian 5-year mortgages come due and get refinanced at current rates. Those payments will no longer be lower than the US equivalent who locked in a 30-year fixed rate between 2017-2021. Thanks for the (much better) explanation.