Millions of Canadians will face higher mortgage payments when their terms are up for renewal next year. The article explores the potential impact of this and discusses the possibility of longer-term mortgage options becoming available in Canada, drawing comparisons to the US system.
There may be some serious sticker shock when roughly two million Canadians go to renew their mortgages next year. BlueShore Financial's Nico Wong has some tips of how you can prepare yourself for the inevitable hike – Nov 21, 2024Imagine it: You buy a house, and the bank offers you a single rate of interest that will keep yourThat’s a (very general) explanation of how the bulk of mortgages work in the United States.
Economic statement that led to Freeland resignation paints grim picture for Canada’s economy Under a section on “lowering the costs of homeownership,” Ottawa said it was “examining the barriers” to making mortgages with terms of up to 30 years available — a way to offer more options to borrowers. The federal government now plans to launch consultations to explore bringing these long-term options to the mortgage market. But experts tell Global News it’s a model so far unique to the U.S. housing market — some have called itOn top of that, some say those changes might not make the housing market any more affordable to would-be buyers. “Most fixed-rate borrowers say they want U.S.-style mortgages… until they see the price tag,” Robert McLister, mortgage strategist with MortgageLogic.news, said in an email.You might already be familiar with the structure of Canadian mortgages, but here it is in a nutshell. When a homebuyer applies for a mortgage, the typical process sees them take out a loan to be paid back — or amortized — over 25 years, though Ottawa has recentlyWithin that 25- or 30-year period, the mortgage is broken up into different terms. Canadian homeowners will often take on a mortgage with a fixed rate of interest for five years or fewer.At the end of those five years, the rate of interest will change based on market conditions at the time of renewal, and the term will begin anew until the homeowner has paid off the entirety of the loan or broken the mortgag
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