Please here is my interpretation do research Also Canada seemed to over the years to stop offering 20 year fixed mortgages. It generally is a 25 amortization with 6 months tp 10 year mortgage. If your credit or financial status changes at time of bank mortgae renewal you can be turned down even though you have a 25 year amortization and have equity in your home. RBC recently added a 25 fixed mortgage for 8.5 %. I feel there will be a housing loss in a big way. For sometime I believe Canada did not offer those and should have. The term mortgage is the amount of time the mortgage goes for with a specific rate, lender, and conditions. After that the bank will do a financial health check when you renew . You may not be renewed if you income or credit changes even if you've been paying mortgage regularly.
for everyone. You have not signed a contract for a 25 year mortgage only an 25 year amortization period. The amortization is a duration which your expected to clear the whole mortgage. I feel over the decades this type of mortgage gave the impression of affordability and gave banks and government moneys with each renewal. Lower interest only offered for short durations drove house prices up and banks could gather fees for renewal. Before cmhc rules people could have afforded the homes if interest went up to 5 or 10 %. We paid 8.5 percent for 5 year term mortgage 20 years ago. In 1980 my family paid 16 percent for a mortgage.
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