Good Idea? Interest-Only Mortgages Have Come To Canada

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The Bank of Canada wants innovation in mortgages. That hasn't always worked out in the past

gave a speech

In essence, his argument was that more different types of mortgages would spread out the risk of a debt crisis. If everyone has the same type of mortgage, everyone is susceptible to the same risks, so if something goes wrong. everyone's up the same creek without a paddle. More varied mortgages would mean any negative scenario would affect fewer people.Bank of Canada Governor Stephen Poloz speaks during a business luncheon in Montreal, Thurs. Feb. 21.

"Interest-only mortgages are generally harder to qualify for," McLister said in an email to HuffPost Canada."Unlike the irresponsible U.S. variety, pre-housing crash, Canadian do not increase your buying power."Few borrowers would benefit "Unlike the irresponsible U.S. variety, pre-housing crash, Canadian do not increase your buying power."For that reason, Poloz is urging"transparency" in mortgage bundling, which already goes on in Canada to a limited extent, backed by Canada Mortgage and Housing Corp. He wants to set up"

 

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They do that here in South Korea buy it's only 1 year of interest payments. No biggie as long as you stay informed before you sign. It gives you a bit of a break to settle down, furnish your home, etc before the larger payments start.

They have been here for years, Manulife, I had one with them 15 years ago.

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