Why would it collapse?
Nobody is able to afford to buy/live in your property anymore.
If you don‘t find buyers/renters how will you manage to pay off your investment credit you took out at 95%credit rate while only covering contract signing fees at ~1% interest with 10year stable interest.
Once interest is adjusted after 10years to 4-5% you (property owner that can’t find any high paying renters) are fucked
In the USA your interest rate is fixed for the term of the mortgage. There are exceptions but they are comparably extremely rare.
I think you have a good point though regarding places that reset interest every n-years. People will struggle to make payments. It will be interesting to see what happens in places like Canada. I’m guessing millions more people on the governments teet. I assume the current admin wound love that.
If you don‘t find buyers/renters how will you manage to pay off your investment credit you took out at 95%credit rate while only covering contract signing fees at ~1% interest with 10year stable interest.
Once interest is adjusted after 10years to 4-5% you (property owner that can’t find any high paying renters) are fucked