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?
In: 40
Canadians USED to be able to get actual 25 year mortgages. Banks moved away from them so they could make more money. My late Father bought the family home in 1963 with a 25 year mortgage, with interest in the mid-single digits. By the late 70’s,, early 80’s, when his savings account and investments were earning double digit interest, his mortgage was still that mid-single digit interest, and he was laughing his ass off.
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