John Liles 0 Report post Posted November 13, 2019 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! Quote Share this post Link to post Share on other sites
Harry Seaward 1,355 Report post Posted November 13, 2019 Most people get a 30-year fixed rate. 1 Quote Share this post Link to post Share on other sites
WhoCares1000 743 Report post Posted November 14, 2019 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. Quote Share this post Link to post Share on other sites
John Liles 0 Report post Posted November 19, 2019 Thanks for the reply Quote Share this post Link to post Share on other sites
