Slightly more than half (54%) of Canadian homeowners or those planning to buy a home would choose a fixed-rate mortgage if signing for a mortgage today, says a CIBC poll.
The CIBC Mortgage Poll found that the majority of Canadians surveyed (72%) believe interest rates will rise in the next 12 months, says CIBC in a release. Still, 19% of those surveyed would choose a variable-rate mortgage, with 26% undecided.
Three-quarters (77%) of those surveyed said they currently have a fixed-rate mortgage.
“Most Canadians believe a fixed mortgage is the way to go—especially those in the early days of paying down their mortgage or juggling household expenses,” said Tracy Best, senior vice president of mobile advice at CIBC, in a release. “Conversely, for those considering a variable mortgage, they may benefit from a lower rate initially, but also need to be comfortable that rates may change, potentially several times, over the course of the mortgage.”
Here are other findings from the survey:
- Canadians carry an average balance of $170,000 on their mortgages;
- 22% of Canadians over the age of 55 have a mortgage, with the average amount at $112,600. Among this group, 47% expect to carry a mortgage into retirement and 22% expect to be mortgage free in five years;
- 60% said the “lowest rate possible” is the most important factor in choosing a mortgage;
- 83% said “they prefer predictability and stability over risk” when it comes to their finances;
- 39% are concerned about their overall debt load including credit cards, loans and line of credit.
Methodology: Maru/Blue conducted an online survey of 1,509 randomly selected Canadian adults from panelists for Maru Voice Canada on June 20, 2018.