> I wish I could buy back my own mortgage at a discount given how much interest rates have risen
But why would you want to do that? If you take out a fixed-rate loan and interest rates rise, you are already making a profit. Financially, there would be no further benefit from the buy-back of the loan.
Presumably I'd be able to buy it back at $0.60 on the dollar since that's what the market value of a low interest mortgage would be on today's market of 7% mortgage rates.
I'd want to do it so I could sell my place and move. No doubt if I sell my place now, the bank is just taking that money and lending it out again, making a profit on the difference in rates.
Yes, but that boils down to changing the terms of your loan in your favor.
You probably should ask yourself: How much of a premium on your mortgage would you have paid to have the option to pay it off at market rates if rates happen to go up.
A similar example: in the US, typically loans have no prepayment penalty, but in practice you are paying for that option. I'm theory you could get a lower rate if you agreed to a high fee if you prepay.
I think it ends up not being worth it for lenders to give you so many options when picking your loan terms, simply because lots of people won't understand the subtitles/there's not much demand for those products.
But why would you want to do that? If you take out a fixed-rate loan and interest rates rise, you are already making a profit. Financially, there would be no further benefit from the buy-back of the loan.