Sign in to follow this  
John Liles

What is the best term for mortgage?

Recommended Posts

Hi all, I am currently planning to buy a new house and was in a bit of research about the type of mortgages and interest rates that are offered by banks. I think my credit score is OK and that would not cause any problems while going for a mortgage.

The thing which is worrying for me is the interest rate, what if the interest had a sudden increase in the years to come. Then I will have to pay more than what was planned and this causes instability and with that, if I wish to cancel or transfer my mortgage there are mortgage penalties which I will have to pay further.

So with all this in mind, what are your thoughts on the best term to choose? Are most people going with a 5-year term? Thanks for your advice!

Share this post


Link to post
Share on other sites

I know Canada is different from the USA so most of us cannot say. A 5 year term is pretty fast for those of us in the USA but might be normal for Canada.

Also, it should be known that Canada does not have a tax deduction for mortgage interest like the USA so the fastest term that the the homeowner can afford to pay off would be the best path to go.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this