One More Case for Longer-Term Mortgages: Financial Stability

10 Pages Posted: 6 Mar 2020

Date Written: 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.

Keywords: Financial Services and Regulation; Financial Stability; Housing and Mortgages; Prudential Regulation

JEL Classification: G28; R21; R38

Suggested Citation

Feldman, Michael, One More Case for Longer-Term Mortgages: Financial Stability (January 21, 2020). C.D. Howe Institute e-Brief 299, Available at SSRN: or

Michael Feldman (Contact Author)

Torys LLP ( email )

79 Wellington Street West, Suite 3000
Box 270, TD Centre
Toronto, NY Ontario M5K 1N2

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