you are viewing a single comment's thread
view the rest of the comments
[–] 4 points 2 years ago (1 child)

In USA, refinance happens only when consumer wants to. Usually to get a better rate or cash in on some equity I think.

  • source
  • parent
  • hideshow 2 child comments
  • [–] 3 points 2 years ago (2 children)

    In Canada, the mortgage has to be renewed every 5 years or less depending on your contract. They'll never let you have a 30 years mortgage on a 2% interest rate the whole time.

  • source
  • parent
  • hideshow 4 child comments
  • [–] 3 points 2 years ago (1 child)

    So what happens if you go to renew and they’re like “screw you, 8%”, and you can’t afford that increase? Do they just foreclose your house?

  • source
  • parent
  • hideshow 2 child comments
  • [–] 1 point 2 years ago

    Well if you can't afford it, you take a temporary mortgage with the objective to sell.

    Otherwise you add a lump sum to reimburse the capital to reduce your payments.

    Different banks will offer different rates as well so you can shop around and negotiate.

  • source
  • parent