More than half of Canadians (57%) are locking in monthly mortgages at today’s low interest rates, finds a new CIBC poll—that compares to 48% in 2014, and 39% in 2011.
It adds the number of Canadians selecting variable-rate mortgages has held steady at 30% for the last five years.
Read: Prepare clients for interest rate risk
CIBC vice-president Barry Gollom says, “Clients are telling us they don’t expect rates to [drop] any lower. And, in today’s housing market, [most] want the comfort and security of knowing exactly what their mortgage payments will be for the next four or five years.”
In fact, only 44% of respondents expect higher mortgage rates next year, down from 47% in 2014, and 61% in 2011. About the same percentage (42%) expect rates to remain the same for the next 12 months.
Read: More Canadian banks cut lending rates
Gollom adds, “[Interest] rates tend to factor heavily into [mortgage] decisions, but it’s important to [also] make decisions based on your financial situation, and how well you’re able to juggle monthly payment[s], expenses and saving.”
Read:
Provincial breakdown of poll findings
By region, the percentage of Canadians who would choose a fixed-rate mortgage today is as follows.
2015 | 2014 | 2013 | 2012 | 2011 | |
National | 57% | 48% | 45% | 50% | 39% |
Atlantic Canada | 59% | 50% | 37% | 63% | 43% |
Quebec | 58% | 48% | 45% | 51% | 45% |
Ontario | 55% | 48% | 41% | 49% | 35% |
Manitoba
and Saskatchewan |
55% | 47% | 64% | 46% | 33% |
Alberta | 58% | 42% | 47% | 49% | 36% |
British Columbia | 58% | 51% | 49% | 48% | 38% |