Can someone help me understand the difference between Canadian and American banks and the mortgages offered. Down here, the only mortgages offered by my bank are 10, 15, 20 and 30 years, with rates ranging from 2.5 to 3.5%.
How would a short term (less than 10 years) mortgage work in Canada? I assume the amortization is longer than the term, correct? Do you re-new when the term is up, but keep the same amortization period?
Some banks down here offer adjustable rate mortgages, or ARMs, that are short term (3 to 7 years), were the rate is adjusted every 12 months or so based on some common index like 1 year treasury or LIBOR. The adjusted rate is also capped so it can only go up or down a maximum amount.
Are Canadian mortgages the equivalent of ARMs?
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