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by djrogers 1520 days ago
The norm in Canada is 30 year term, with a variable rate. It's the second part that can really get you...
3 comments

30 years hasn't been possible in Canada for several years now (thankfully).
What is normal? It's hard for middle class people to afford normal housing stock in highly advanced countries without 30 years of amortizing debt. Yes, I understand that some countries force you to chain bullet mortgages over ~30 years to achieve a similar effect.
Why is that a good thing?
I think you're conflating mortgage term (which is typically 5 years fixed or variable in Canada) and amortization. The latter can go up to 25 years for CMHC-insured loans at the time.
That makes sense, I would be terrified putting 40% of my pre-tax income towards a mortgage with a variable rate