Two-generation mortgage payment may become the norm, according to James Chapman of The Globe and Mail Online.
Homeowners are no longer retiring but working past 65. Mortgage rates are rising. Adult children are moving back into their parents’ homes, renting their basements. The result: mortgage loans will take 40 years to pay, instead of 25 years – and the children of the next generation will shoulder the loan and pay for their parents’ homes as the seniors eventually pass on.
This arrangement has been the norm in Japan for years, and UK homeowners are following suit. While still some way off, it is a practice that Canadian homeowners and sellers may consider should prices continue to rise.
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