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Mortgages in Canada differ in two more important ways: 1. They are shorter term -- no longer than 7 years. 2. They are always adjustable. Both these items
by sanj 18y ago
Mortgages in Canada differ in two more important ways:
1. They are shorter term -- no longer than 7 years.
2. They are always adjustable.
Both these items mean that banks can react much more quickly to market changes.
- chollida1 18y ago> 2. They are always adjustable. What do you mean here? I may just not be up on mortgage terminology but my mortgage is a 5 year fixed. How is it adjustable?
- sanj 18y agoMy info my be stale, but I was under the impression that all mortgages offered were adjustable in some way. But it sounds like I'm wrong!
- 3pt14159 18y agoYou are incorrect. 1. There is no maximum term. I've heard of people getting 25 year terms, although they have a really high interest rate. The reason they did this is that they were on retirement income and needed to predict exactly how much they could afford month to month. See: http://www.ingdirect.ca/en/mortgages/index.html http://www.ingdirect.ca/en/mortgages/index.html For just one quick example of mortgages that go up to 10 years fixed. The main difference with Canadian mortgages is that they force you to pony up some capital AND there is none of this variable rate nonsense. Also, no securitization of mortgages. http://www.ingdirect.ca/en/mortgages/index.html http://www.ingdirect.ca/en/mortgages/index.html
- lazyant 18y agoA typical mortgage in Canada now is 4-5 years fixed plus the rest variable. You can also get all the mortgage full if you can afford it (probably makes little sense with the low rates). The whole term can go as far as 30 years. I think I saw a 40-year term too but I'm not sure.