Quote:
Originally Posted by Sapphireho
So let me get this straight. In Canada, you get a fixed rate loan for term of loan (let's say 30 years) and they can change rate every 5 years still? So every home loan in Canada is variable every 5 years? That sounds crazy.
Sure glad my house is paid off!
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Many, many years ago mortgages were fixed for the length of the term. When I first starting working at a Texaco station at 15 I remember the owner saying how scared he was when he and his wife bought their first house. He’d tell me how he laid awake at night at the thought of paying 2% for 25 years. This was around 1969 and he went on to tell me how the bank was then trying hard for him to switch to the new type mortgage that had a much shorter term. He laughed them off every time with: Why the f@ck would I switch to a higher rate for a much shorter term? I mean would you? You’d be f@cking crazy to, right? As far as I know they stayed in that house their entire married life and he probably is telling this story to his pals in the afterlife and still laughing his butt off.
This one reason why the banking sector is so strong in Canada. They make profits hand over fist posting record profits quarter after quarter. There hasn't been a bank failure in Canada in over 70+ years.