Hacker News Reader

In Toronto mortgages don't work this way. Fixed rate mortgages are typically 5 year terms. After the term is up they'll have to get the higher interest rate.

View on HN

Well that's all up to the buyer, but most people are risk averse when it comes to their home. The default mortage term is 30 years, and most people fix the interest rate 20 or 30 years.

People who took a shorter term for the interest rate in the past 10 years, now have a housing cost of a few hundred euros, because it came down from 3-4%.

Mortgages where the amortization period and the term are equal are extremely rare in Canada. Most Canadian fix their interest for a term of 5 years (at a fixed rate or a fixed deviation from the prime rate).

Reply on news.ycombinator.com