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January 21, 2020

Longer-term mortgages would enhance both consumer choice and financial stability, but regulatory changes are needed to help them develop into a significant part of the Canadian residential mortgage market, says a new report from the C.D. Howe Institute.

In “One More Case for Longer-Term Mortgages: Financial Stability,” author Michael K. Feldman notes that according to the Bank of Canada only 2 percent of all Canadian mortgages issued in 2018 were fixed-rate loans with terms of longer than five years. He further suggests that encouraging 10-year or longer mortgages would increase options for borrowers while adding more stability to the housing market.

Michael K. Feldman

Michael Feldman's practice focuses on corporate and commercial law, with an emphasis on structured asset-backed financing, securitization, private M&A, capital markets, secured lending, aircraft financing and derivatives. He has represented issuers and underwriters on various public and private securitizations and sellers and conduit sponsors on asset-backed commercial paper transactions.