What is the difference between a US and UK mortgage?

US mortgages commonly have 30-year or 15-year fixed-rate terms where the interest rate is locked for the entire duration. UK mortgages typically have shorter fixed-rate periods (2, 5, or 10 years), after which the rate moves to the lender's standard variable rate (SVR). This means UK borrowers typically refinance more often.

What is the maximum mortgage term in Canada?

In Canada, the maximum amortization period for insured mortgages (less than 20% down payment) is 25 years. For uninsured mortgages, lenders may allow up to 30 years. Mortgage terms (the period with a fixed rate) are typically 5 years, after which you renew at current market rates.

How do I calculate my monthly mortgage payment?

Monthly payment = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (years x 12). For a $300,000 loan at 7% for 30 years: r = 0.07/12 = 0.005833, n = 360, payment = $1,996/month.

Mortgage Calculator — US, UK & Canada Differences Explained

Mortgage Calculator

Mortgage payments use the same math globally, but loan terms, fixed periods, and regulations differ significantly between the US, UK, and Canada. Select your country to get accurate defaults.

Quick Answer

Monthly payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ−1] where P = principal, r = monthly rate, n = months. US: 30-year fixed is standard (almost unique globally). UK: 2–5 year fixed terms, then variable rate. Canada: max 25-year amortization; stress test at contract rate + 2% or 5.25%.

💡 30-year fixed is the most common US mortgage. Rates are locked for the full term.

Loan Amount ($)

Annual Interest Rate (%)

Loan Term (Years)

How Mortgages Work Differently Around the World

🇺🇸 United States

The 30-year fixed-rate mortgage is uniquely American — almost no other country offers a mortgage where the interest rate is locked for 30 years. This exists because of Fannie Mae and Freddie Mac, government-backed entities that buy mortgages from lenders, allowing banks to offer long fixed terms. US mortgages also have:

No prepayment penalties on most conventional loans
Tax deduction for mortgage interest (for itemizers)
PMI (Private Mortgage Insurance) required if down payment is less than 20%

🇬🇧 United Kingdom

UK mortgages work very differently. Most have a short fixed period (2–5 years), then revert to the lender's Standard Variable Rate (SVR). Borrowers must either accept the SVR or remortgage. Key differences:

Most popular: 2-year and 5-year fixed deals
Early Repayment Charges (ERCs) typically apply during the fixed period
No equivalent to the 30-year fixed — the longest available is typically 10 years
Help-to-Buy schemes exist for first-time buyers

🇨🇦 Canada

Canada sits between the US and UK. The amortization period can be up to 25 years (insured) or 30 years (uninsured), but the term (fixed-rate period) is typically just 5 years. After each term, borrowers renew at current market rates.

Stress test: Borrowers must qualify at 2% above the contract rate or 5.25%, whichever is higher
CMHC insurance required if down payment is less than 20%
Maximum insured mortgage: $1.5 million (2024)

Feature	🇺🇸 US	🇬🇧 UK	🇨🇦 Canada
Typical fixed period	15 or 30 years	2–5 years	5 years
Max amortization	30 years	35–40 years	25–30 years
Prepayment penalty	Usually none	Yes (ERC)	Usually yes
Min down payment	3.5% (FHA)	5%	5%
Insurance if < 20%	PMI	No equivalent	CMHC insurance

Sources & Methodology

Monthly payments use the standard amortization formula. Term conventions and rate types differ by country (e.g. the 30-year fixed in the US vs. shorter fixed periods in the UK).

Standards and figures reviewed 2026.