Why U.S. And Canadian Mortgages Work So Differently

Why U.S. And Canadian Mortgages Work So Differently

 

Ever wondered why U.S. home buyers can secure a 30-year fixed mortgage, while Canadians typically renew every five years? In this video, we dive into the unique structures of Canadian and American mortgage systems, focusing on interest rate risks, tax implications, and equity growth. In Canada, lenders prefer shorter terms to manage rates, unlike in the U.S., where government-backed institutions like Fannie Mae and Freddie Mac support 30-year terms. U.S. homeowners enjoy tax-deductible mortgage interest, while Canadians benefit from tax-free profit on the sale of a primary residence. This encourages faster equity growth in Canada, despite fewer refinancing options. For Canadian buyers curious about mortgage differences, watch to understand how Canada's system promotes stability and builds equity quickly. For more questions on Canadian mortgages, reach out – we’re here to help! Thank you for watching. Let us help you with your real estate and mortgage needs. We serve the Cambridge, Kitchener, Waterloo, Guelph and Brantford areas. Check out our website at http://www.maximumresults.ca