” Here in Canada my mortgage is coming in for renewal—”
What does that mean? I’ve had 30 year mortgages,but they were fixed.
(Obviously I am no financial genius.)
.
The industry here is completely different. Found that out with my wife, who emigrated here from the US. No such as thing as an interest rate term that can be locked in for 30 years. I think the longest term you can get is 10 years, but those are very expensive so most consumers get 5 year terms. Essentially my rate is locked in for 5 years only and then we have to re-negotiate.
So the amortization period is as you said, for 30 years, but the promise from the bank to honor the interest rate only lasts 5 years.
What is not different is how interest rates are influenced. The Central Bank sets the bank rate, and then bond markets adjust themselves based on that, and the mortgage market then takes its cues from the bond market. Because Canada’s economy is so tied to the US, the Central Bank essentially matches whatever the Fed does.