Nick Perry explains why Canadian mortgages are risky: five-year terms force renewal at market rates, so a 1.8% rate from 2020 could jump to 5% in 2025. U.S. borrowers lock in 30-year fixed rates instead. Canadian investors are moving capital south to escape the constant renegotiation.
Never, ever, ever buy properties in Canada or else you will lose millions of dollars. Here's why. See, in Canada, when you get a mortgage, you're forced to renew it every 5 years. So let's say you locked in a 1.8% rate back in 2020. You're cash flowing and everything's beautiful. Then 2025 hits and now you got to renew at 5% because the market changes. Your payment doubles and the property that was once making you money is now slowly bankrupting you. Whereas in the States, if you lock in a 30-year fixed rate, that rate is yours for 30 years. Nobody can touch it. Nobody can force you to renegotiate. Which is why so many Canadian investors are pouring money into American real estate right now. They're running from a system that's designed to keep them renting from the bank forever. This is why you
