3 ms·
Why do you have to remortgage?
by lowbloodsugar 3y ago
Why do you have to remortgage?
- jrs235 3y agoProbably and ARM loan.
- jacquesm 3y agoProbably the end of a fixed interest period approaching. This is the case for some %age of the total number of mortgages out there every year. It's also the moment you're going to be taken advantage of.
- itsoktocry 3y agoTaken advantage of how? Where you taking advantage of the bank with the prior rates?
- jacquesm 3y agoTaken advantage of because you have to deal with them. Previously you had the option to walk away. But when the fixed interest term expires you are going to have to make some kind of deal because very few people can switch to being homeless or paying off their entire mortgage at the drop of a hat.
- palmer_fox 3y agoPresumably a 10/30 loan or something similar. Many homeowners are facing the same problem with the interest rate now being significantly higher than when they got a 10/30 initially.
- rbjorklin 3y agoI think most places outside of the US has fixed term lengths of max 5 years for which you can lock in your interest rate.
- kypro 3y agoYeah, the US is an outlier. In most countries the government doesn't back mortgage loans so we have to refinance after a few years. Basically every mortgage in countries like Canada and the UK is what the US would consider an "ARM".
- itsoktocry 3y agoCanada's government backs mortgages through the CMHC. We have shorter term fixed rates, usually capped at 10 years. We also have variable rate mortgages, which are ARM equivalent.
- red-iron-pine 3y agoyeah common in Canada. Generally 5 year. House is amortized over 25 but you basically renew the loan every 5 years. US-style 15 and 30 year are unheard of. Kinda glad I didn't buy during COVID cuz I'd be getting slammed now...