2023-10-25 01:30:10
Option consommateurs wants the government to change the rules regarding mortgages and increase the length of terms to help owners keep their homes.
“Offering a term over a longer period would provide greater stability, it is more predictable for banks and consumers,” mentions Sylvie de Bellefeuille, lawyer and budget advisor at Option consommateurs.
She explains that the last two years have demonstrated that mortgage rates can change quickly.
“What we see on the market are terms that are still short, like three years, sometimes five years. This means that many people will have difficulty when renewing because the rates have increased so much that they will no longer have the means to pay their mortgage,” underlines the lawyer.
The proposal to extend the terms of contracts to 10 years instead of three or five years is not an idea that is out of the ordinary.
In some countries such as the United States, the duration of mortgage contracts is 30 years.
“This is happening elsewhere like in the United States where the periods are longer and we have seen less increase in house prices. We have seen in recent years when rates were very low, it was more conducive to an increase in prices. So, if the rate is stable for a longer period, we think that this will avoid a big fluctuation in the real estate market,” she says.
Watch the full interview in the video above.
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