RolloOver Mortgages in Canada
نویسنده
چکیده
The Canadian system for financing housing differs in a number of important respects from the U.S. system. Of greatest interest for this study is the absence of interest rate ceilings on deposits or mortgages and the fact that nearly all single-family mortgages are of a "roll-over" variety with interest rates fixed for only a fraction of the total amortization period, These two differences, as we shall show, allow Canadian institutions to avoid the interruptions in the supply of mortgage credit and the deterioration in reserve positions typical of U.S. institutions with their unmatched assets and liability structure and deposit rate ceilings.
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