About one out of every five home loans at three big Canadian banks are now negatively amortizing, which happens when years get added to the payment term of the original loan because the monthly payments are no longer enough to cover anything but the interest.
Disagree. I’m on an ARM. VRM are stupid and if prime raises or lowers so should your rate. Principal payment should never change IMHO. Having all these VRM mortgages have caused this mess.
My variable rate has gone up so much my monthly payments have gone up 1k. But my amortization is still 25 years.
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ARMs should be illegal
Disagree. I’m on an ARM. VRM are stupid and if prime raises or lowers so should your rate. Principal payment should never change IMHO. Having all these VRM mortgages have caused this mess.
My variable rate has gone up so much my monthly payments have gone up 1k. But my amortization is still 25 years.
https://www.truenorthmortgage.ca/blog/adjustable-rate-mortgage-canada
An arm is an adjustable rate mortgage.
You want fixed.
You’re in Canada I think we are talking past each other