The US weirdness of 30 year fixed-rate loans that the customer can call at anytime and the bank can never call except for non-performance is substantially subsidized by the US Government.

Freddie Mac and Fannie Mae or whatever they are/were take those mortgages and basically convert them into government bonds that are then sold out.

Otherwise getting 2% for 30 years would be nearly impossible (and it IS impossible in many countries).

How do you mean it is regulated this way? RBC lists a 25-year fixed right now - https://www.rbcroyalbank.com/mortgages/mortgage-rates.html#p....

It isn't competitive (9.75% vs 6.2% on a 5 year), but it's there.

Woah, that’s strange. I just bought a house and the mortgage guy I was dealing with said anything more than 7 years is prohibited in Canada unless you go to an unregulated B-lender. Clearly I stand corrected!

I don’t know if they actually sell a 25, or just post a rate for some other reason. But I know I locked in for 10 my first contract.

It makes the banking system more resilient to rate fluctuations..