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Pastimes : Alan Greenspan MUST GO: -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (122)	5/29/2000 10:38:00 AM
From: Master (Hijacked)	Read Replies (2) \| Respond to of 494

HI Steve, You are correct, I am in Canada. I am not sure what you mean by yearly caps on mortgages. Here in Canada the term of the mortgage is typically 20 to 25 years. It is renewed at the discretion of the client, whose decision is based on perceived changes in future rates, for terms of 6 months, 1 year, 2 years or 5 years. Banks here no longer allow renewals for periods beyond 5 years. In other words, I could not lock in my mortgage at 5% for twenty five years. Homeowners who locked their mortgages 2 years ago at 5.5% are now up for renewal at 8.75%. That is a considerable difference! The several hundred dollars in additional interest expenses is considerable for an average household. As BWAC previously pointed out in one of his posts, the interest rate hike hurts the little guy. Vince