Are longer mortgage terms the solution to Canada’s payment shock challenges?

Canadians are concerned about potential payment shocks at mortgage renewal due to shorter terms. Longer terms, similar to those in the U.S., could offer more stability but face challenges due to prepayment penalties. With 76% of Canadian mortgages up for renewal by 2026, there could be significant payment increases. Despite the potential stability offered by longer terms, high costs, risks, and past financial crises remain concerns.

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