Fixed rate is the most common mortgage, 20 to 30 year term mortgages are common here but they have to be renewed at the going interest rate every few years, usually 1 to 5 years. The longer the renewal term the higher the interest rate.
If it renews every 1-5 years, at current interest rates, we wouldn’t call that a fixed rate here in the states, it would be a long term adjustable.
If I have a fixed rate loan in the states for 20 years, the interest rate stays the same for the full 20 years of the loan, regardless of what prime rate is.
That’s why cm1995 is saying it’s hard to get longer term owners to move up or down. If I bought a house 8 years ago with a 30 year fixed. That home has likely doubled in value, but the interest rate is still locked for the next 20 years at half of the current interest rates.
So if I want a better home than my current home, I’m faced with this- my house was 175,000 15 years ago, today market value is probably 300,000. But if I sell it to lock in my gains, I’ve got to buy a 450,000 home, to have a nicer home, and borrow 200,000 at a higher interest rate to do it. It would double my monthly payments.
My kids are almost all out of the house, so if I wanted to sell this house, and buy a smaller home, the smaller home is priced more than I gave for mine 15 years ago, so there’s not a huge reason to downsize, my current home is cheaper than anything remotely comparable on the market.
So I ain’t moving.