Hi I was listening to a pod cast and they mentioned how Americans can lock in a mortgage interest rate for 30 or 15 years. In canada you can lock in a rate from 1 to 10 years but the average is 5 years. Also US banks will offer lower interest rates for the entire term of the mortgage. Aren’t the banks losing out on potential future profits doing this?
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Because they have an series of organisations funding this (Fannie Mae, Freddie Mac), which pretty much have gone bankrupt, and are constantly bankrolled by government tax money because otherwise everyone would lose their house.
It’s basically socialism at this point, which is pretty hilarious for the US.
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