Maybe not so new since our Canadian friends to the North have a similar system in place. The system rewards one for paying down debt sooner rather than spreading it out and deducting the interest, if I am reading the article correctly. The maximum amount of time one can have a home loan in Canada without an interest rate reset is 5 years. Encouragement to lower the debt as quickly as possible. The article was in Today's Op-Ed section of The Washington Post.
The concept is interesting and even more interesting since the Canadians have not had the number of foreclosures that we have had here in the U.S. since the financial meltdown. The piece quotes that 14 percent of U.S. mortgages are in distress while the number is only 1% in Canada. If it weren't so doggone cold there in January (Summers are real nice though).
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