A Fairer Mortgage Playing Field for All
Here in the country of Canada, we’ve been lucky to escape much of the economic recession affecting the United States and much of the rest of the world in recent years. As a major brokerage firm for the Canadian city of Edmonton, we’re proud to know that the financial practices and regulations in this country have gone a long way in protecting us from many of the situations causing crises elsewhere.
Many make the uninformed decision that Canada’s mortgage climate tends to be much less restrictive than the system in place in America, most notably in Canada’s lack of a 30-year fixed mortgage, which is pretty typical in the United States. As this article published by LATimes.com discusses, however, there’s more to Canada’s system than meets the eye.
Canadian mortgages are more favorable to banks than American ones in certain respects. In our country, mortgage creditors can attach debts to borrower assets, unlike in America, while Canadian borrowers also typically face a renegotiation of their interest rates after five years, which can be difficult to manage if interest rates have increased dramatically.
On the other hand, there are some ways borrowers are protected from having others take advantage of their financial futures. Shorter-term mortgages allow borrowers to use more local options for financing their mortgages. Unlike in the United States, mortgage interest isn’t tax-deductible, and as a result, borrowers don’t have any reason to overborrow.
This and other heavy regulations on the banking world in Canada are exactly why our housing markets haven’t fluctuated so wildly in recent years. Compared to other global economies, the financial structures for mortgages and other lending situations are much less prone to collapse, sparing us the brunt of the most recent recession.
River City Financial is proud to belong to a country that prizes both economic success for hard-working businesses and a fairer playing field for all. If you’re ready for homeownership in Edmonton, browse through our website to get a better idea of the mortgage services we can provide for you.